Encompass Health ( (EHC) ) has released its Q1 earnings. Here is a breakdown of the information Encompass Health presented to its investors.
Encompass Health Corporation is the largest owner and operator of inpatient rehabilitation hospitals in the United States, providing high-quality rehabilitative care across 167 hospitals in 38 states and Puerto Rico.
Encompass Health has reported strong financial results for the first quarter of 2025, with significant growth in revenue and earnings, prompting an increase in its full-year guidance.
The company achieved a 10.6% increase in net operating revenue, reaching $1,455.4 million, driven by a 6.3% growth in total discharges and a 3.9% rise in net patient revenue per discharge. Adjusted EBITDA rose by 14.9% to $313.6 million, while adjusted earnings per share increased by 22.3% to $1.37. Cash flows from operating activities also saw a notable increase of 20.9%, amounting to $288.6 million.
Encompass Health’s strategic expansion efforts included the opening of a new 40-bed hospital and the addition of 25 beds to existing facilities, reinforcing its capacity and operational strategy. The company has updated its full-year 2025 guidance, now expecting net operating revenue between $5,850 to $5,925 million and adjusted EBITDA between $1,185 to $1,220 million.
Looking ahead, Encompass Health remains optimistic about its long-term business prospects, supported by its robust operational strategy and capacity expansion initiatives, as highlighted by the company’s management.