Core Insights - High dividend yields are attractive, but total return, which includes both dividend yield and share price change, is a more relevant measure of stock performance [1] - Five stocks are highlighted for their strong total returns and significant dividend increases of 10% or more in 2025 [2] Company Summaries Comfort Systems USA (FIX) - Announced a 10% increase in its quarterly dividend to $0.50, payable on Aug. 25 [2] - Current dividend yield is 0.26%, with a payout ratio of 9.25% and a 13-year track record of dividend payments [2] - Despite a low yield, the stock has risen over 600% since early 2022, reflecting strong earnings momentum and investor confidence [4] Wingstop (WING) - Achieved a total return of nearly 28% in 2025, with an 11% increase in its quarterly dividend to $1.08 [6] - Current dividend yield is 0.32%, with a payout ratio of 18% and a 7-year track record of dividend payments [5] - The stock's quarterly payout has grown at a compound annual growth rate of over 16% in the past three years [7] McKesson (MCK) - Recently increased its quarterly dividend by 15% to $0.82, payable on Oct. 1 [9] - Current dividend yield is 0.40%, with a payout ratio of 10.99% and a 17-year track record of dividend payments [9] - The stock has provided a total return of around 23% in 2025, with consistent dividend increases enhancing long-term value [11] Encompass Health (EHC) - Announced a nearly 12% increase in its quarterly dividend to $0.19, payable on Oct. 15 [12] - Current dividend yield is 0.58%, with a payout ratio of 14.05% and a 2-year track record of dividend payments [12] - The company has achieved a total return of over 18% in 2025, indicating a focus on long-term capital returns [13] Welltower (WELL) - Increased its quarterly dividend by 10.4% to $0.74, payable on Aug. 21 [15] - Current dividend yield is 1.59%, with a payout ratio of 151.41% and a 2-year track record of dividend payments [14] - The stock has achieved a total return of over 33% in 2025, reflecting improving fundamentals and consistent dividend growth [16] Overall Market Trends - The five highlighted stocks are increasing their dividends, which is crucial as they have experienced significant share price appreciation [18] - Dividend increases help mitigate the decline in yield due to rising share prices, enhancing the overall return profile for investors [18]

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]

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 [12][17] - Total discharges for Q2 increased by 7.2%, with same-store discharges growing by 4.7% [5][12] - Net revenue per discharge increased by 4.2%, benefiting from a decrease in bad debt expense to 2% [12][14] Business Line Data and Key Metrics Changes - Discharges for neurological conditions and stroke grew by 126.7% in Q2 [6] - The discharge community rate was 84.8%, with discharge to acute and SNF rates at 8.5% and 5.8% respectively, outperforming industry averages [6][10] 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 [8][9] - The 65+ population is growing at a CAGR of approximately 3%, while the supply of licensed IRF beds has increased only nominally [9] Company Strategy and Development Direction - The company plans to open five additional hospitals and expand existing facilities, increasing total bed capacity significantly [7][17] - The focus remains on treating complex medical conditions, leveraging clinical expertise to develop best-in-class protocols [10][11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth of the inpatient rehabilitation market, citing a favorable regulatory environment and increasing demand [8][11] - The company is raising its 2025 guidance for net operating revenue and adjusted EBITDA based on strong Q2 performance [17] Other Important Information - The company repurchased approximately 232,000 shares for $24.7 million and increased its quarterly dividend to $0.19 per share [15] - Adjusted free cash flow increased by 30.5% to approximately $186 million, with year-to-date adjusted free cash flow up 31.7% [14][15] Q&A Session Summary Question: What are the occupancy rates and comfort levels for single bedroom facilities? - Occupancy in Q2 was 76.6%, up 210 basis points year-over-year, with plans to expand when occupancy stabilizes above 80% [20][22] Question: What are the company's thoughts on quality ratings and initiatives? - Management supports quality measurements and believes they would perform well if included in future regulations [24][25] Question: How does the company share quality results with stakeholders? - The company shares metrics like discharge community rates and patient satisfaction scores with referral sources and joint venture partners [30][31] Question: What is the story behind the increase in managed care pricing assumptions? - Growth in the VA Community Care Network has contributed to an increase in managed care pricing, now comprising almost 18% of the overall managed care business [34][36] Question: What are the expectations for EBITDA in the second half of the year? - The company anticipates incurring most preopening and ramp-up costs in the second half, with a slight increase in bad debt expected [40][41] Question: How is the company managing benefits expenses? - Benefits expenses increased by 18%, driven by high dollar medical claims, with a focus on managing these costs going forward [94][96] Question: What is the company's strategy regarding acquisitions? - Currently, there are no identified service lines for acquisition outside of inpatient rehab, with a focus on de novo expansions instead [68][69]

Financial Performance - Q2 2025 - Net operating revenue increased by 12.0% to $1,457.7 million compared to $1,301.2 million in Q2 2024[8] - Adjusted EBITDA increased by 17.2% to $318.6 million compared to $271.8 million in Q2 2024[8] - Adjusted EPS increased by 26.1% to $1.40 compared to $1.11 in Q2 2024[8] - Adjusted free cash flow increased by 30.5% to $185.9 million compared to $142.5 million in Q2 2024[8] Financial Performance - YTD Q2 2025 - Net operating revenue increased by 11.3% to $2,913.1 million compared to $2,617.2 million in YTD Q2 2024[8] - Adjusted EBITDA increased by 16.0% to $632.2 million compared to $544.8 million in YTD Q2 2024[8] - Adjusted EPS increased by 24.2% to $2.77 compared to $2.23 in YTD Q2 2024[8] - Adjusted free cash flow increased by 31.7% to $408.3 million compared to $310.1 million in YTD Q2 2024[8] Revenue Details - Inpatient revenue increased by 11.7% to $1,413.7 million in Q2 2025 compared to $1,265.5 million in Q2 2024[13] - Outpatient and other revenue increased by 23.2% to $44.0 million in Q2 2025 compared to $35.7 million in Q2 2024, including an $8.5 million increase in Medicaid supplemental payments[13] - Discharges increased by 7.2% to 65,237 in Q2 2025 compared to 60,833 in Q2 2024[13] 2025 Guidance (Updated) - Net Operating Revenue guidance increased to $5,880 to $5,980 million from the previous guidance of $5,850 to $5,925 million[22] - Adjusted EBITDA guidance increased to $1,220 to $1,250 million from the previous guidance of $1,185 to $1,220 million[22] - Adjusted earnings per share guidance increased to $5.12 to $5.34 from the previous guidance of $4.85 to $5.10[22]

Encompass Health (EHC 1.02%), one of the largest providers of inpatient rehabilitation services in the U.S, released its second-quarter 2025 earnings on August 4, 2025. The standout news centered on robust financial and operational results. The company delivered $1.46 billion in GAAP revenue in Q2 2025, topping consensus by $30.47 million (GAAP), and reported non-GAAP earnings per share (EPS) of $1.40, also surpassing analyst expectations on a non-GAAP basis. Compared to Q2 2024, both revenue and profits sa ...

Core Insights - Encompass Health (EHC) reported $1.46 billion in revenue for Q2 2025, a 12% year-over-year increase, with an EPS of $1.40 compared to $1.11 a year ago, exceeding Zacks Consensus Estimates for both revenue and EPS [1] - The company achieved a revenue surprise of +2.29% and an EPS surprise of +16.67% compared to analyst expectations [1] Financial Performance Metrics - Net patient revenue per discharge was $21,670, surpassing the two-analyst average estimate of $21,429.50 [4] - Total discharges were 65,237, slightly above the average estimate of 64,850 [4] - Net Operating Revenues for Inpatient services reached $1.41 billion, exceeding the average estimate of $1.39 billion, reflecting an 11.7% year-over-year increase [4] - Net Operating Revenues for Outpatient and other services were $44 million, above the average estimate of $43.19 million, showing a year-over-year increase of 23.3% [4] Stock Performance - Encompass Health shares have returned -8.8% over the past month, contrasting with the Zacks S&P 500 composite's +0.6% change [3] - The stock currently holds a Zacks Rank 2 (Buy), suggesting potential outperformance against the broader market in the near term [3]

Encompass Health (EHC) came out with quarterly earnings of $1.4 per share, beating the Zacks Consensus Estimate of $1.2 per share. This compares to earnings of $1.11 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +16.67%. A quarter ago, it was expected that this rehabilitation hospital operator would post earnings of $1.19 per share when it actually produced earnings of $1.37, delivering a surprise of +15.13%. Over the last ...

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 ...

Core Viewpoint - Encompass Health Corporation reported strong financial results for Q2 2025, with significant revenue growth and increased guidance for the full year, reflecting the company's operational efficiency and expansion efforts [1][3]. Financial Performance - Net operating revenue for Q2 2025 was $1,457.7 million, up from $1,301.2 million in Q2 2024, representing a growth of $156.5 million or 12.0% [2]. - Income from continuing operations attributable to Encompass Health per diluted share increased to $1.40, a rise of 23.9% from $1.13 in the same quarter last year [2]. - Adjusted earnings per share for Q2 2025 were $1.40, compared to $1.11 in Q2 2024, marking a 26.1% increase [2]. - Cash flows from operating activities rose by 24.3% to $270.2 million, primarily due to increased net income [2][9]. - Adjusted EBITDA for Q2 2025 was $318.6 million, up 17.2% from $271.8 million in Q2 2024 [2][9]. Operational Highlights - The company opened a new 60-bed hospital in Fort Myers, Florida, and added 26 beds to an existing facility, enhancing its capacity to serve patients [3]. - Total discharges increased by 7.2%, with same-store discharge growth of 4.7% [2][9]. - Net patient revenue per discharge grew by 4.2%, reaching $21,670 in Q2 2025 [2]. Updated Guidance - Encompass Health raised its full-year guidance for 2025, with updated expectations for net operating revenue between $5,880 million and $5,980 million, and adjusted EBITDA between $1,220 million and $1,250 million [3]. - Adjusted earnings per share guidance was also increased to a range of $5.12 to $5.34 [3]. Company Overview - Encompass Health is the largest owner and operator of inpatient rehabilitation hospitals in the U.S., with 169 hospitals across 38 states and Puerto Rico [6]. - The company is recognized for its high-quality rehabilitative care and has received accolades from Fortune and Forbes for its reputation [6].

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].