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Encompass Health (EHC)
NYSE:EHC
Earnings Data
Report Date
Apr 29, 2026After Close (Confirmed)
Period Ending
2026 (Q1)Consensus EPS Forecast
1.5Last Year’s EPS
1.37Same Quarter Last Year
Strong Buy
Based on 5 Analysts Ratings
Earnings Call Summary
Earnings Call Sentiment|Positive
The call conveyed strong operational and financial performance—robust revenue and EBITDA growth, record free cash flow, improved labor metrics, quality outcomes above industry averages and active capital deployment—offset by targeted payer and regulatory challenges (notably a meaningful MA conversion decline with a specific national plan, RCD adjudication efforts in select markets, and some unit consolidations). Management presented clear mitigation actions (appeals strategy, Palmetir analytics, small-format hospital strategy) and provided constructive 2026 guidance, so positives materially outweigh negatives.Company Guidance
Strong Revenue and EBITDA Growth
Full-year 2025 revenue increased 10.5%; Q4 revenue rose 9.9% to $1.5B. Full-year adjusted EBITDA grew 14.9%, and Q4 adjusted EBITDA increased 15.9% to $335.6M.
Robust Free Cash Flow and Capital Deployment
Full-year adjusted free cash flow was $818M (up 18.5% year-over-year); Q4 adjusted free cash flow was $235.4M (up 23.6%). Management funded $736M of capex, $158M in share repurchases and returned $71M in cash dividends while keeping long-term debt essentially flat.
Volume Growth and Patient Mix
2025 discharge growth was 6% (Q4 discharge growth 5.3%). Net revenue per discharge increased 4.1% in Q4 (including a $2.7M managed care settlement). Management highlighted favorable fee-for-service growth and broad-based growth across diagnosis categories (brain injury +8.7%, cardiac +5.1%, neuro +4.5%, major trauma +5%, stroke +3.8%).
Quality and Outcomes
Strong quality metrics: full-year discharge-to-community 84.6%, discharge-to-acute-care 8.6%, discharge-to-SNF 6.1% — each favorable versus industry averages. Management reported record patient outcome scores and patient satisfaction for 2025.
Labor Cost Improvement and Workforce Progress
Premium labor spend declined by more than $21M year-over-year in 2025; Q4 premium labor costs fell $5.8M to $23.8M (lowest since Q1 2021). Contract labor FTEs at 1.1% of total FTEs (lowest since Q1 2021). SWB per FTE up 2.1% in Q4; nursing turnover 20.2% and therapy turnover 7.8% for the year; company added ~300 net RNs same-store in 2025.
Capacity Expansion and Strategic Growth
Added 517 beds in 2025 (390 via 8 new hospitals and 127 by adding beds to existing hospitals). Plan to add a new modality of 24-bed small-format hospitals beginning in 2027 to support a hub-and-spoke strategy and expand market density.
Technology and Operational Enhancements
Completed ERP conversion to Oracle Fusion (October) and expanded Palantir relationship to streamline admission documentation and enhance claim-denial responses, with expectations to expand analytics to CRM, revenue cycle and clinical staffing.
Prudent Balance Sheet and 2026 Guidance
Year-end net financial leverage 1.9x (provides flexibility). 2026 guidance: net operating revenue $6.365B–$6.465B, adjusted EBITDA $1.34B–$1.38B, adjusted EPS $5.81–$6.10.
EHC Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed
EHC Earnings-Related Price Changes
Report Date | Price 1 Day Before | Price 1 Day After | Percentage Change |
|---|---|---|---|
Feb 05, 2026 | $99.56 | $105.39 | +5.86% |
Oct 29, 2025 | $125.41 | $116.60 | -7.02% |
Aug 04, 2025 | $109.14 | $113.51 | +4.00% |
Apr 24, 2025 | $100.94 | $112.84 | +11.79% |
Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.
FAQ
When does Encompass Health (EHC) report earnings?
Encompass Health (EHC) is schdueled to report earning on Apr 29, 2026, After Close (Confirmed).
What is Encompass Health (EHC) earnings time?
Encompass Health (EHC) earnings time is at Apr 29, 2026, After Close (Confirmed).
Where can I see when companies are reporting earnings?
You can see which companies are reporting today on our designated earnings calendar.
What companies are reporting earnings today?
You can see a list of the companies which are reporting today on TipRanks earnings calendar.
What is EHC EPS forecast?
EHC EPS forecast for the fiscal quarter 2026 (Q1) is 1.5.