About Encompass Health BIRMINGHAM, Ala., Jan. 9, 2026 /PRNewswire/ -- Encompass Health Corp. (NYSE: EHC) today announced it will report results for its fourth quarter ended Dec. 31, 2025, after the market closes on Thursday, Feb. 5, 2026. The Company will host an investor conference call at 10 a.m. ET on Friday, Feb. 6, 2026, to discuss its results. Media contact: The conference call may be accessed by dialing 800-267-6316 and providing the conference ID EHCQ425. International callers should dial 203-518-97 ...

Core Points - Encompass Health Corp. plans to build a 50-bed freestanding inpatient rehabilitation hospital in Fishers, Indiana, expected to open in 2027 [1][3] - The new facility will cater to patients recovering from various debilitating conditions, including strokes, brain injuries, and complex orthopedic conditions, providing specialized nursing and therapy services [2][3] - The hospital will feature private patient rooms, advanced rehabilitation technologies, and various amenities to enhance patient care and recovery [3] Company Overview - Encompass Health is the largest owner and operator of inpatient rehabilitation hospitals in the U.S., with 172 hospitals across 39 states and Puerto Rico [4] - The company is recognized for its high-quality rehabilitative care and has received accolades such as being named America's Most Awarded Leader in Inpatient Rehabilitation [4] - Encompass Health aims to expand its presence in Indiana to meet the growing demand for inpatient rehabilitation services [3][4]

Financial Performance - Net operating revenue increased by 94% to $14775 million in Q3 2025 compared to $13510 million in Q3 2024 [8] - Adjusted EBITDA increased by 114% to $3001 million in Q3 2025 compared to $2693 million in Q3 2024 [8] - Adjusted EPS increased by 194% to $123 in Q3 2025 compared to $103 in Q3 2024 [8] - Adjusted free cash flow decreased by 82% to $1742 million in Q3 2025 compared to $1897 million in Q3 2024 [8] - For the first 9 months of 2025 net operating revenue increased by 106% to $43906 million compared to $39682 million for the same period in 2024 [8] - For the first 9 months of 2025 adjusted EBITDA increased by 145% to $9323 million compared to $8141 million for the same period in 2024 [8] - For the first 9 months of 2025 adjusted EPS increased by 224% to $399 compared to $326 for the same period in 2024 [8] - For the first 9 months of 2025 adjusted free cash flow increased by 165% to $5825 million compared to $4998 million for the same period in 2024 [8] Capacity Additions and Development - The company opened three new hospitals in Q3 2025: a 50-bed de novo hospital in Daytona Beach FL a 40-bed de novo hospital in Danbury CT and a 50-bed satellite hospital in Wildwood FL [10] - The company added 39 beds to existing hospitals in Q3 2025 [10] Guidance - The updated 2025 net operating revenue guidance is $5905 million to $5955 million [22] - The updated 2025 adjusted EBITDA guidance is $1235 million to $1255 million [22] - The updated 2025 adjusted earnings per share guidance is $522 to $537 [22]

Core Insights - Encompass Health Corporation reported strong financial results for Q3 2025, with net operating revenue increasing by 9.4% year-over-year to $1,477.5 million, and adjusted earnings per share rising by 19.4% to $1.23 [2][3] - The company has increased its full-year guidance for 2025, projecting net operating revenue between $5,905 million and $5,955 million, and adjusted EBITDA between $1,235 million and $1,255 million [4] Financial Performance - Net operating revenue for Q3 2025 was $1,477.5 million, compared to $1,351.0 million in Q3 2024, reflecting a $126.5 million increase [2] - Income from continuing operations attributable to Encompass Health per diluted share was $1.24, up from $1.07, marking a 15.9% increase [2] - Adjusted EBITDA for Q3 2025 was $300.1 million, an increase of 11.4% from $269.3 million in Q3 2024 [2] Operational Highlights - The company opened three new hospitals and added 39 beds to existing facilities during the quarter, enhancing its capacity to serve patients [3] - Encompass Health was recognized as "America's Most Awarded Leader in Inpatient Rehabilitation" for the sixth consecutive year, underscoring its commitment to high-quality patient care [3] Guidance Update - The updated full-year guidance for 2025 includes net operating revenue of $5,905 million to $5,955 million, adjusted EBITDA of $1,235 million to $1,255 million, and adjusted earnings per share from continuing operations of $5.22 to $5.37 [4]

Market Overview - U.S. equities reached record highs driven by optimism regarding trade negotiations between Washington and Beijing, with the Dow Jones Industrial Average increasing by 337.47 points (0.71%) to close at 47,544.59, the S&P 500 rising by 1.23% to 6,875.16, and the Nasdaq Composite leading the rally with a 1.86% jump to 23,637.46 [1] Interest Coverage Ratio Importance - The interest coverage ratio is crucial for assessing a company's ability to meet its debt obligations, with a higher ratio indicating better financial health [2][5] - This ratio is calculated as Earnings before Interest & Taxes (EBIT) divided by Interest Expense, providing insight into how many times a company can cover its interest payments from earnings [6][7] Company Analysis - Stride, Inc. (LRN), Ralph Lauren Corporation (RL), Encompass Health Corporation (EHC), and Boot Barn Holdings, Inc. (BOOT) are highlighted for their strong interest coverage ratios, indicating robust financial health [4][11] - Stride has a projected EPS growth of 8.8% and a stock price increase of 67.6% over the past year [14] - Ralph Lauren is projected to have a 21.7% EPS growth and a stock price increase of 65.8% over the past year [15] - Encompass Health is expected to see a 19% EPS growth with a stock price rise of 27.2% over the past year [16] - Boot Barn is projected to achieve a 12.9% EPS growth and a stock price increase of 56.2% over the past year [17] Investment Strategy - A successful investment strategy should include companies with an interest coverage ratio above the industry average, a favorable Zacks Rank, and a VGM Score of A or B [9][12] - Stocks with a strong historical EPS growth and substantial trading volume are also recommended for better investment outcomes [10][12]

Core Viewpoint - Encompass Health Corporation is facing scrutiny due to allegations of misleading business information, leading to a potential class action lawsuit by The Rosen Law Firm on behalf of shareholders [1][2][6] Group 1: Legal and Regulatory Issues - The Rosen Law Firm is investigating potential securities claims against Encompass Health following allegations of misleading business information [1][6] - A New York Times article reported serious incidents of patient harm and below-average safety performance at some of Encompass Health's rehab hospitals, resulting in a 10.3% drop in stock price on the day of publication [1] Group 2: Market Performance and Analyst Opinions - UBS upgraded Encompass Health's stock to a "Buy" on October 2, 2025, raising the price target from $140 to $150, indicating confidence in the company's future performance despite recent controversies [3][6] - Encompass Health's current stock price is $123.23, reflecting a slight decrease of 0.32, or -0.259% [4][6] - The stock has shown volatility over the past year, with a high of $127.86 and a low of $87.85 [4] Group 3: Financial Metrics - Encompass Health's market capitalization is approximately $12.41 billion, with a trading volume of 1,017,291 shares on the NYSE, indicating a significant market presence [5][6]

Core Insights - Encompass Health Corporation (EHC) is recognized as one of the best healthcare stocks to buy and hold for five years [1] Company Overview - Encompass Health Corporation is the largest owner and operator of inpatient rehabilitation hospitals in the U.S., with over 160 facilities across 38 states and Puerto Rico [2] - The company specializes in intensive rehabilitation for patients recovering from various conditions, offering personalized care plans that include physical, occupational, and speech therapies, along with 24-hour nursing and physician oversight [2] Recent Developments - In September 2025, EHC expanded its operations by opening two new hospitals: the Encompass Health Rehabilitation Hospital of Danbury in Connecticut, a 40-bed facility, and a 50-bed satellite hospital in Sumter County, Florida [3] - These expansions are part of EHC's growth strategy, which includes developing new hospitals and satellite locations to meet rising demand due to an aging population and increasing chronic conditions [4] Financial Performance - For the first half of 2025, EHC reported net operating revenue of $2.91 billion, reflecting an 11.3% year-over-year increase [5] - The company provided full-year revenue guidance of $5.88–$5.98 billion, with occupancy rates improving from 72.1% in 2023 to 77.7% in the first half of 2025, indicating stronger utilization and operational momentum [5]

Core Viewpoint - Rosen Law Firm is investigating potential securities claims on behalf of shareholders of Encompass Health Corporation due to allegations of materially misleading business information [1] Group 1: Legal Action and Investor Rights - Shareholders of Encompass Health may be entitled to compensation through a class action without any out-of-pocket fees, as the Rosen Law Firm prepares to seek recovery of investor losses [2] - Investors can join the prospective class action by submitting a form or contacting the law firm directly [2] Group 2: Company Performance and Market Reaction - A New York Times article highlighted serious incidents of patient harm and below-average performance on key safety measures at Encompass Health, leading to a 10.3% drop in the company's stock price on July 15, 2025 [3] Group 3: Rosen Law Firm's Credentials - The Rosen Law Firm has a strong track record in securities class actions, having achieved significant settlements and recognition in the field, including being ranked No. 1 for securities class action settlements in 2017 [4] - The firm has recovered hundreds of millions of dollars for investors, with over $438 million secured in 2019 alone [4]

Core Viewpoint - Rosen Law Firm is investigating potential securities claims on behalf of shareholders of Encompass Health Corporation due to allegations of materially misleading business information [1] Group 1: Investigation and Allegations - The investigation is prompted by an article from The New York Times highlighting serious incidents of patient harm and below-average performance on key safety measures at Encompass Health's rehab hospitals [3] - Following the publication of the article, Encompass Health's stock price dropped by 10.3% on July 15, 2025 [3] Group 2: Class Action Details - Investors who purchased Encompass Health securities may be entitled to compensation through a class action lawsuit without any out-of-pocket fees [2] - The Rosen Law Firm is preparing a class action to seek recovery of investor losses [2] Group 3: Rosen Law Firm's Credentials - Rosen Law Firm has a strong track record in securities class actions, having achieved the largest securities class action settlement against a Chinese company at the time [4] - The firm has been ranked in the top 4 for securities class action settlements since 2013 and recovered hundreds of millions of dollars for investors, including over $438 million in 2019 [4]

Core Viewpoint - Encompass Health Corp. and BSA Health System have announced a joint venture to establish a 50-bed inpatient rehabilitation hospital in Amarillo, Texas, aimed at enhancing rehabilitation care in the community [1][4]. 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, providing high-quality rehabilitative care [5]. - BSA Health System is the largest healthcare employer in the Texas Panhandle, operating a comprehensive healthcare system that includes a flagship 445-bed hospital and various clinics [7]. Hospital Details - The new hospital will focus on patients recovering from serious conditions such as strokes, brain injuries, and complex orthopedic issues, offering 24-hour nursing care and various therapies [2][3]. - Facilities will include private patient rooms, a therapy gym with advanced technologies, an activities of daily living suite, and an in-house dialysis suite [3]. Strategic Importance - The partnership is expected to enhance acute care capacity in Amarillo and improve the level of rehabilitation care available to the community [4]. - The hospital is projected to open in late 2025 and will be part of Encompass Health's ongoing expansion efforts in Texas [4].