Encompass Health Reports Strong Q3 2025 Earnings

Encompass Health ( (EHC) ) has released its Q3 earnings. Here is a breakdown of the information Encompass Health presented to its investors.

Encompass Health Corporation, the largest owner and operator of inpatient rehabilitation hospitals in the United States, specializes in providing high-quality rehabilitative care for patients recovering from major injuries or illnesses across its extensive network of facilities.

In its latest earnings report for the third quarter of 2025, Encompass Health announced a notable increase in net operating revenue and adjusted earnings per share, alongside strategic expansions including the opening of three new hospitals. The company also raised its full-year financial guidance, reflecting its optimistic outlook.

Key financial highlights from the report include a 9.4% increase in net operating revenue to $1,477.5 million and a 19.4% rise in adjusted earnings per share to $1.23. The company also reported an 11.4% increase in adjusted EBITDA to $300.1 million. Despite a slight decline in adjusted free cash flow, the company experienced a 5% increase in discharges, indicating strong operational performance.

Strategically, Encompass Health expanded its capacity by opening new hospitals in Connecticut and Florida, enhancing its ability to serve more patients. The company was also recognized as ‘America’s Most Awarded Leader in Inpatient Rehabilitation’ for the sixth consecutive year, underscoring its commitment to quality care.

Looking ahead, Encompass Health remains optimistic about its growth prospects, supported by its strategic expansions and strong financial performance. The company’s management has expressed confidence in its ability to continue delivering high-quality patient care and achieving its financial targets for the year.