Encompass Health reports results for first quarter 2025

Core Viewpoint - Encompass Health Corporation reported strong first-quarter results for 2025, with significant revenue and earnings growth, leading to an increase in full-year guidance for key financial metrics [1][4]. Financial Performance - Net operating revenue for Q1 2025 was $1,455.4 million, a 10.6% increase from $1,316.0 million in Q1 2024, reflecting a growth of $139.4 million [2][9]. - Income from continuing operations attributable to Encompass Health per diluted share rose to $1.48, up 33.3% from $1.11 in the previous year [2][14]. - Adjusted earnings per share increased by 22.3% to $1.37 from $1.12 [2][21]. - Cash flows from operating activities increased by 20.9% to $288.6 million compared to $238.8 million in Q1 2024 [2][18]. - Adjusted EBITDA for the quarter was $313.6 million, a 14.9% increase from $273.0 million [2][20]. Operational Highlights - Total discharges increased by 6.3% to 64,985, with same-store discharge growth of 4.4% [2][9]. - Net patient revenue per discharge grew by 3.9% to $21,816 from $20,990 [2][9]. - The company opened one new 40-bed hospital and added 25 beds to existing facilities during the quarter [3]. Updated Guidance - The company raised its full-year guidance for 2025, with net operating revenue now expected to be between $5,850 million and $5,925 million, up from the previous range of $5,800 million to $5,900 million [4]. - Adjusted EBITDA guidance was updated to a range of $1,185 million to $1,220 million, compared to the previous guidance of $1,160 million to $1,200 million [4]. - Adjusted earnings per share from continuing operations is now projected to be between $4.85 and $5.10, an increase from the prior range of $4.67 to $4.96 [4].