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].
Encompass Health reports results for second quarter 2025