Encompass Health (US:EHC)2026-02-05 21:23Financial Performance - Net operating revenue for Q4 2025 was $1,544.6 million, representing a 9.9% increase from $1,405.0 million in Q4 2024[2] - Adjusted EBITDA for Q4 2025 was $335.6 million, up 15.9% from $289.6 million in Q4 2024[2] - Net income for 2025 was $759.1 million, a 27.2% increase compared to $596.6 million in 2024[19] - Adjusted EBITDA for the year ended 2025 reached $1,267.9 million, up 15% from $1,103.7 million in 2024[21] - Net income for Q4 2025 was $203.1 million, an increase of 23.7% from $164.2 million in Q4 2024[30] - Income from continuing operations attributable to Encompass Health for Q4 2025 was $145.3 million, up from $120.5 million in Q4 2024, representing a growth of 20.6%[25][26] - Income from continuing operations attributable to Encompass Health for the year 2025 was $567.2 million, up from $458.5 million in 2024, a year-over-year increase of 24%[27][28] Earnings Per Share - Adjusted earnings per share for 2026 is expected to be between $5.81 and $6.10[5] - Basic earnings per share for 2025 were $5.63, a 23.5% increase from $4.56 in 2024[21] - Diluted earnings per share from continuing operations for Q4 2025 was $1.42, an increase from $1.18 in Q4 2024, marking a rise of 20.3%[25][26] - Diluted earnings per share from continuing operations for the year 2025 was $5.55, compared to $4.49 in 2024, reflecting a growth of 23.6%[27][28] Cash Flow and Investments - Cash flows from operating activities increased to $346.0 million in Q4 2025, a 24.1% rise from $278.8 million in Q4 2024[2] - Cash flows from operating activities totaled $1,175.6 million in 2025, compared to $1,002.8 million in 2024, marking a 17.3% increase[19] - Adjusted free cash flow for Q4 2025 was $235.4 million, a 23.6% increase from $190.5 million in Q4 2024[2] - Net cash provided by operating activities for Q4 2025 was $346.0 million, compared to $278.8 million in Q4 2024, reflecting a 24.2% increase[31] - Net cash used in investing activities for the year ended December 31, 2025, was $764.6 million, primarily due to capital expenditures[33] - Net cash used in financing activities for the year ended December 31, 2025, was $431.2 million, driven by stock repurchases and distributions to noncontrolling interests[33] Assets and Liabilities - Total assets increased to $7,089.7 million in 2025, up from $6,534.7 million in 2024, representing an 8.4% growth[17] - Total current liabilities decreased slightly to $836.4 million in 2025 from $841.0 million in 2024[17] - Long-term debt, net of current portion, increased to $2,447.2 million in 2025 from $2,359.2 million in 2024, reflecting a 3.7% rise[17] - Total shareholders' equity increased to $3,217.5 million in 2025, up from $2,792.7 million in 2024, indicating a 15.2% growth[17] Operational Metrics - The company added a total of 517 inpatient rehabilitation beds in 2025, including eight new hospitals and 127 beds to existing facilities[3] - The number of discharges in Q4 2025 was 67,238, reflecting a 5.3% increase from 63,839 in Q4 2024[2] - Net patient revenue per discharge increased to $22,273, a 4.1% rise from $21,399 in Q4 2024[2] Tax and Other Expenses - The company reported a provision for income tax expense of $55.4 million for Q4 2025, compared to $37.6 million in Q4 2024, an increase of 47.8%[25][26] - The company experienced a loss on disposal or impairment of assets of $0.3 million in Q4 2025, compared to $6.1 million in Q4 2024, showing a significant reduction in losses[25][26] - The company reported a loss from discontinued operations of $0.8 million in Q4 2025, compared to a loss of $0.4 million in Q4 2024[30] Future Projections - For 2026, the company projects net operating revenue between $6,365 million and $6,465 million[5] - The company anticipates continued growth in adjusted EBITDA and free cash flow, supported by strategic investments and operational efficiencies[36]