Core Insights - Encompass Health Corp (EHC) shares increased by 7.4% following the release of its second-quarter 2025 results, driven by strong net patient revenue and capacity expansion, despite elevated operating expenses [1][2][3] Financial Performance - Adjusted earnings per share (EPS) for Q2 2025 reached $1.40, exceeding the Zacks Consensus Estimate by 16.7% and reflecting a 26.1% year-over-year increase [2][8] - Net operating revenues rose 12% year-over-year to $1.5 billion, surpassing consensus estimates by 2.3% [2][8] - Net patient revenue per discharge grew 4.2% year-over-year to $21.7 billion, with total discharges increasing by 7.2% to 65,237 [3][4] Operating Expenses - Total operating expenses amounted to $1.2 billion, a 10.4% increase year-over-year, primarily due to higher salaries and benefits [3][4] Income and Cash Flow - Net income for Q2 2025 was $184.9 million, up 26.2% year-over-year [4][6] - Adjusted EBITDA improved 17.4% year-over-year to $318.6 million, exceeding estimates [4][6] - Net cash from operations reached $270.2 million, a 24.3% increase year-over-year, with adjusted free cash flow rising 30.5% to $185.9 million [6] Capital Deployment - EHC repurchased shares worth $24.7 million during the quarter and had approximately $433 million remaining under its buyback authorization [7] - The company declared a quarterly cash dividend of 17 cents per share, which was increased to 19 cents in July [7] 2025 Outlook - The company raised its 2025 net operating revenue forecast to between $5.88 billion and $5.98 billion, indicating a 10.4% increase from 2024 [9][10] - Adjusted EPS for 2025 is now expected to be between $5.12 and $5.34, reflecting an 18.1% growth from 2024 [10] - Adjusted free cash flow is projected to be between $705 million and $795 million, up from previous guidance [10] Growth Strategy - EHC plans to open seven de novo hospitals and add 340 beds, with expectations to add 100-120 beds to existing hospitals in 2025 [11] - The company aims for a compound annual growth rate (CAGR) of 6-8% in discharges from 2023 to 2027 [12]

FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2025 OR UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 ______________________________ ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File Number 001-10315 ______________________________ Encompass Health Corporation (Exact name of Registrant as specified in its Charter) (State or Other Jurisdic ...

While high dividend yields are enticing to many investors, the more relevant measurement of success of any stock is its total return. Total return includes a stock's dividend yield, as well as the change in share price. These two sources of return often work against each other; as shares fall, dividend yields rise, and vice versa. Below, we’ll detail five stocks that are working to deliver on both return sources. They are performing well in 2025, with their total returns beating out the overall market. They ...

Financial Data and Key Metrics Changes - Revenue for Q2 increased by 12% to $1.46 billion, while adjusted EBITDA rose by 17.2% to $318.6 million [13][7] - Total discharges for Q2 increased by 7.2%, with same-store discharges growing by 4.7% [7][13] - Net revenue per discharge increased by 4.2%, benefiting from a decrease in bad debt expense to 2% [13][14] - Adjusted free cash flow increased by 30.5% to approximately $186 million, bringing year-to-date adjusted free cash flow to approximately $408 million, a 31.7% increase from 2024 [15][16] Business Line Data and Key Metrics Changes - Neurological conditions and stroke discharges grew by 126.7% in Q2 [8] - The discharge community rate was 84.8%, with discharge to acute and SNF rates at 8.5% and 5.8% respectively, outperforming industry averages [8][11] - The company opened a new 60-bed hospital in Fort Myers, Florida, and added 26 beds to an existing hospital in Q2 [9] Market Data and Key Metrics Changes - The demand for inpatient rehabilitation services is significantly underserved, particularly as the U.S. population ages, with the Medicare beneficiary population projected to grow substantially [10] - The average age of Medicare beneficiaries is 77 years, with the population aged 65 and older growing at a CAGR of approximately 3% [10] Company Strategy and Development Direction - The company plans to open five additional hospitals and add 30 to 50 beds to existing hospitals by the end of the year [9] - The company is increasing its 2025 guidance for net operating revenue to between $5.88 billion and $5.98 billion, and adjusted EBITDA to between $1.22 billion and $1.25 billion [18] - The company continues to focus on treating complex medical conditions and developing best-in-class clinical protocols [11] Management's Comments on Operating Environment and Future Outlook - Management noted that the demand for inpatient rehabilitation services remains considerably underserved, with a focus on treating patients with complex medical conditions [10] - The company is optimistic about future growth, citing favorable demographic trends and an increase in Medicare reimbursement rates [12][10] Other Important Information - The company repurchased approximately 232,000 shares for $24.7 million and announced an increase in its quarterly dividend to $0.19 per share [17] - The company has a favorable leverage and liquidity position, with net leverage at two times and approximately $100 million in unrestricted cash [16] Q&A Session Summary Question: What are the occupancy rates and comfort levels for single bedroom facilities? - Management indicated that occupancy in Q2 was 76.6%, up 210 basis points year-over-year, and that stabilization above 80% would prompt consideration for future bed expansions [22][24] Question: What is the company's stance on quality ratings and initiatives? - Management stated that any changes in quality initiatives did not make it into the final rule and expressed willingness to support quality measurements that are agreed upon by the industry [27][28] Question: How does the company share quality results with stakeholders? - Management shares quality metrics such as discharge community rates and patient satisfaction scores with joint ventures and referring physicians [32][34] Question: What is the story behind the increase in managed care pricing assumptions? - The increase is attributed to growth in the VA Community Care Network, which now comprises almost 18% of the managed care business and pays at Medicare CMG rates [38] Question: What are the expectations for EBITDA in the second half of the year? - Management expects to incur most preopening and ramp-up costs in the second half, with guidance reflecting potential increases in bad debt and other costs [42] Question: How is the company addressing benefits expense growth? - Management noted that benefits expense per FTE increased by 18%, driven by high dollar medical claims, and indicated that strategies are in place to manage these costs [100] Question: What is the outlook for outpatient visits and pricing? - Outpatient visits increased by 8% quarter-over-quarter, attributed to a good book of business in remaining facilities, despite a reduction in the overall footprint [124]

Encompass Health (EHC) Q2 2025 Earnings Call August 05, 2025 10:00 AM ET Speaker0Good morning, everyone, and welcome to Encompass Health's Second Quarter twenty twenty five Earnings Conference Call. At this time, I would like to inform all participants that their lines will be in a listen only mode. After the speakers' remarks, there will be a question and answer session. Today's conference call is being recorded. If you have any objections, you may disconnect at this time.I will now turn the call over to M ...

2025 Second Quarter Earnings Call August 5, 2025 Supplemental information Forward-looking statements The information contained in this presentation includes certain estimates, projections and other forward-looking information that reflect Encompass Health's current outlook, views and plans with respect to future events, including the business outlook, guidance and growth targets, future reimbursement rates, labor availability and costs, the effect of tariffs on costs, legislative and regulatory developments ...

Encompass Health (EHC) reported $1.46 billion in revenue for the quarter ended June 2025, representing a year-over-year increase of 12%. EPS of $1.40 for the same period compares to $1.11 a year ago.The reported revenue compares to the Zacks Consensus Estimate of $1.43 billion, representing a surprise of +2.29%. The company delivered an EPS surprise of +16.67%, with the consensus EPS estimate being $1.20.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall St ...

Exhibit 99.1 Media Contact August 4, 2025 Polly Manuel, 205 969-4532 polly.manuel@encompasshealth.com Investor Relations Contact Mark Miller, 205 970-5860 mark.miller@encompasshealth.com Encompass Health reports results for second quarter 2025 Increases full-year guidance 2025 Guidance The Company increased its full-year guidance as follows: BIRMINGHAM, Ala. - Encompass Health Corporation (NYSE: EHC), the largest owner and operator of inpatient rehabilitation hospitals in the United States, today reported i ...

Increases full-year guidanceBIRMINGHAM, Ala., Aug. 4, 2025 /PRNewswire/ -- Encompass Health Corporation (NYSE: EHC), the largest owner and operator of inpatient rehabilitation hospitals in the United States, today reported its results of operations for the second quarter ended June 30, 2025.Summary results Growth Q2 2025 Q2 2024 Dollars Percent (In Millions, Except Per Share Data) Net operating revenue $      1,457.7 $      1,301.2 $     156.5 12.0 % Income from continuing ...

Core Viewpoint - Bragar Eagel & Squire, P.C. is investigating potential claims against Encompass Health Corporation due to allegations of violations of federal securities laws and unlawful business practices following negative reports about the company's hospital performance [1][3]. Group 1: Allegations and Impact - A New York Times article published on July 15, 2025, reported that Encompass's for-profit hospitals perform below average on key safety measures, with 34 facilities rated by Medicare as having significantly worse rates of potentially preventable readmissions [3]. - The article highlighted "alarming mistakes" that have led to patient fatalities, raising serious concerns about the company's operational practices [3]. - Following the publication of this article, Encompass's stock price dropped by $12.39, or 10.4%, closing at $107.28 per share, resulting in financial losses for investors [4]. Group 2: Legal Actions and Contact Information - Investors who purchased or acquired Encompass shares and suffered losses are encouraged to contact Bragar Eagel & Squire for discussions regarding their legal rights and potential claims [1][5]. - The law firm specializes in representing individual and institutional investors in complex litigation, indicating a focus on protecting shareholder interests [6].