#United States #Birmingham #Encompass Health #Q2 Results #Rehabilitation Hospitals

Encompass Health's Robust Financial Performance in Q2 2025

Encompass Health Corporation, the leading owner and operator of inpatient rehabilitation hospitals in the United States, has announced its impressive performance for the second quarter ending June 30, 2025. The company reported operational results that showcase substantial growth across various metrics, reinforcing its position in the healthcare industry.

Financial Highlights

For Q2 2025, Encompass Health recorded net operating revenue of $1.4577 billion, marking a 12.0% increase from $1.3012 billion in Q2 2024. This revenue surge can be attributed to higher patient discharges and improved pricing strategy. The income from continuing operations, which is a key indicator of financial health, also saw a notable rise, resulting in $1.40 per diluted share, a 23.9% increase compared to $1.13 per share in the same quarter last year.

The adjusted earnings per share rose appreciably as well, reaching $1.40, which reflects a 26.1% increase from the previous year. Furthermore, operating cash flows surged by 24.3%, reaching $270.2 million, driven mainly by increased net income. The adjusted EBITDA also climbed by 17.2%, amounting to $318.6 million, demonstrating effective expense management alongside revenue growth.

Discharge Statistics

The total number of discharges rose to 65,237 in Q2 2025, representing a 7.2% increase from 60,833 discharges in the same quarter last year. Additionally, the same-store discharge growth was recorded at 4.7%. These figures illustrate Encompass Health's commitment to maximizing patient care and operational efficiency.

The revenue generated per patient discharge also improved, increasing by 4.2% to $21,670 compared to $20,803 in Q2 2024.

Strategic Expansion

Mark Tarr, the President and CEO of Encompass Health, commented on their accomplishments during the quarter, stating, "We further increased our capacity to serve patients in need of inpatient rehabilitation care, opening a new 60-bed hospital in Fort Myers, Florida, and adding 26 beds to an existing facility." This expansion signifies the company’s strategic approach towards meeting the growing demand for rehabilitation services while enhancing its infrastructure.

Updated Guidance for 2025

In light of these favorable results, Encompass Health has revised its full-year guidance upwards. The updated projections are as follows:

• - Net operating revenue: $5.880 to $5.980 billion (up from $5.850 to $5.925 billion)
• - Adjusted EBITDA: $1.220 to $1.250 billion (up from $1.185 to $1.220 billion)
• - Adjusted earnings per share: $5.12 to $5.34 (updated from $4.85 to $5.10)

This optimistic outlook reflects the management's confidence in maintaining momentum through enhanced operational efficiencies and service expansions.

Future Outlook

To discuss these results in detail, Encompass Health will conduct an investor conference call at 10:00 a.m. Eastern Time on August 5, 2025. This call is expected to provide insights into the strategies that led to their successful performance and future initiatives aimed at sustaining growth and profitability. Interested participants can join by dialing 800-343-4849 for domestic callers or 203-518-9848 for international callers, with the conference ID EHCQ225.

Conclusion

Encompass Health's Q2 2025 results highlight a substantial growth trajectory supported by effective operational strategies and an expanding service network. The company's continuous focus on providing high-quality rehabilitation care positions it as a trusted leader in the healthcare sector. As the organization continues to innovate and adapt to patient needs, it is poised for ongoing success and expansion in the rehabilitation market. For more information, investors and stakeholders can visit Encompass Health’s official website or follow their social media channels.