Core Insights - Encompass Health Corporation reported strong financial performance for Q4 2025, with net operating revenue increasing by 9.9% year-over-year to $1,544.6 million, and adjusted earnings per share rising by 24.8% to $1.46 [2][3] Financial Performance - Net operating revenue for Q4 2025 was $1,544.6 million, compared to $1,405.0 million in Q4 2024, reflecting a growth of $139.6 million [2] - Income from continuing operations attributable to Encompass Health per diluted share increased by 20.3% to $1.42 from $1.18 [2] - Adjusted EBITDA for Q4 2025 was $335.6 million, up 15.9% from $289.6 million in Q4 2024 [2] - Cash flows from operating activities rose by 24.1% to $346.0 million, compared to $278.8 million in the previous year [2] Operational Highlights - The company discharged 67,238 patients in Q4 2025, a 5.3% increase from 63,839 in Q4 2024, with same-store discharge growth of 3.2% [2] - Net patient revenue per discharge increased by 4.1% to $22,273 from $21,399 [2] - Encompass Health added 517 inpatient rehabilitation beds through eight new hospitals and 127 beds to existing facilities during 2025, indicating a significant capacity expansion [3] 2026 Guidance - For 2026, Encompass Health expects net operating revenue between $6,365 million and $6,465 million, and adjusted EBITDA between $1,340 million and $1,380 million [5] - The company anticipates adjusted earnings per share from continuing operations to be in the range of $5.81 to $6.10 [5] Company Overview - Encompass Health is the largest owner and operator of inpatient rehabilitation hospitals in the U.S., with 173 hospitals across 39 states and Puerto Rico [9] - The company is recognized for its high-quality rehabilitative care and has received accolades such as being ranked among Fortune's World's Most Admired Companies and Forbes' America's Best Companies [9]
Encompass Health reports results for fourth quarter 2025 and issues 2026 guidance