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EHC

Encompass Health Corporation

EHC

Encompass Health Corporation • NYSE
$116.22 ▼ -0.03% (-0.03)
Market Cap $11.69 B
52w High $127.99
52w Low $87.85
Dividend Yield 0.76%
P/E 21.89
Volume 265.75K
Outstanding Shares 100.62M

Income Statement

Period Revenue Operating Expense Net Income Net Profit Margin Earnings Per Share EBITDA
Q3-2025 $1.478B ▲ $449.1M ▲ $126.5M ▼ 8.562% ▼ $1.26 ▼ $333.1M ▼
Q2-2025 $1.458B ▲ $367.8M ▲ $142.1M ▼ 9.748% ▼ $1.41 ▼ $347.1M ▼
Q1-2025 $1.455B ▲ $363.9M ▲ $151.5M ▲ 10.41% ▲ $1.5 ▲ $349.6M ▲
Q4-2024 $1.405B ▲ $353.6M ▲ $120.9M ▲ 8.605% ▲ $1.2 ▲ $312.4M ▲
Q3-2024 $1.351B $349.2M $108.2M 8.009% $1.08 $297.1M

Balance Statement

Period Cash & Short-term Total Assets Total Liabilities Total Equity
Q3-2025 $48.7M ▼ $6.866B ▲ $3.679B ▼ $2.374B ▲
Q2-2025 $170.6M ▲ $6.786B ▲ $3.697B ▼ $2.28B ▲
Q1-2025 $95.8M ▲ $6.641B ▲ $3.704B ▲ $2.159B ▲
Q4-2024 $85.4M ▼ $6.535B ▲ $3.686B ▼ $2.067B ▲
Q3-2024 $239.5M $6.458B $3.733B $1.96B

Cash Flow Statement

Period Net Income Cash From Operations Cash From Investing Cash From Financing Net Change Free Cash Flow
Q3-2025 $174.6M ▼ $270.8M ▲ $-201.3M ▼ $-113.2M ▼ $-43.7M ▼ $83.7M ▼
Q2-2025 $184.9M ▼ $270.2M ▼ $-165.4M ▼ $-90.2M ▲ $14.6M ▲ $113.3M ▼
Q1-2025 $196.5M ▲ $288.6M ▲ $-158.5M ▲ $-130.4M ▲ $-300K ▲ $125.5M ▲
Q4-2024 $163.8M ▲ $278.8M ▲ $-203.7M ▼ $-150.9M ▼ $-75.8M ▼ $80.1M ▼
Q3-2024 $147.8M $267.8M $-161.5M $-89.5M $16.8M $120.3M

Revenue by Products

Product Q3-2024Q1-2025Q2-2025Q3-2025
Managed Care
Managed Care
 $150.00M ▲$0 ▼$160.00M ▲$160.00M ▲
Medicaid
Medicaid
 $50.00M ▲$0 ▼$50.00M ▲$50.00M ▲
Medicare
Medicare
 $880.00M ▲$0 ▼$940.00M ▲$950.00M ▲
Patients
Patients
 $0 ▲$0 ▲$0 ▲$0 ▲
Workers Compensation
Workers Compensation
 $10.00M ▲$0 ▼$10.00M ▲$10.00M ▲
Inpatient
Inpatient
 $0 ▲$1.42Bn ▲$0 ▼$0 ▲
Outpatient and Other
Outpatient and Other
 $0 ▲$40.00M ▲$0 ▼$0 ▲

Five-Year Company Overview

Income Statement

Income Statement Revenue has trended upward over the last several years, with a temporary dip and then a strong rebound more recently. Profitability has generally improved, with operating income and earnings growing faster than sales, which suggests decent cost control and good operating leverage as volumes rise. The trend in earnings per share has been clearly positive, helped by both better profits and disciplined financial management. One note of caution: some of the reported gross profit data looks unusually volatile, which could reflect accounting changes, one‑time items, or data quirks rather than a true swing in underlying performance. Overall, the income statement points to a mature operator that is still growing and gradually becoming more efficient, but subject to normal healthcare reimbursement and cost pressures.

Balance Sheet

Balance Sheet The balance sheet shows a business with sizable assets and a meaningful but manageable debt load. Total assets and shareholder equity have risen over time, indicating ongoing investment in facilities and a gradual strengthening of the company’s capital base. Debt remains significant but has edged lower relative to earlier years, suggesting a slow de‑leveraging trend. Cash on hand is quite modest, which is typical for a capital‑intensive healthcare operator but leaves less of a buffer in a downturn. In simple terms, the company looks solidly capitalized for growth, but it does rely on continued access to debt markets and stable cash generation to support its expansion plans.

Cash Flow

Cash Flow Operating cash flow has steadily improved, broadly tracking the rise in earnings, which indicates that reported profits are being backed up by real cash coming in the door. Free cash flow is consistently positive but slimmer, because the company spends heavily on new hospitals and upgrades to existing facilities. That high level of investment is a deliberate choice to fund future growth rather than maximize near‑term surplus cash. The cash flow profile is what you would expect from an expanding healthcare network: cash generation is healthy, but much of it is recycled into new capacity and technology, so excess cash is moderate rather than abundant.

Competitive Edge

Competitive Edge Encompass Health holds a leading position as the largest owner and operator of inpatient rehabilitation hospitals in the United States. Its scale allows it to spread fixed costs, negotiate better terms with suppliers and payors, and invest in technology and clinical programs that smaller rivals would struggle to match. A dense hospital network and joint ventures with major acute care hospital systems help secure a steady flow of patient referrals and deepen relationships with health systems. The company also benefits from aging demographics and a shift toward value‑based care that rewards better outcomes at lower cost—areas where it emphasizes strong clinical results and community discharge rates. Key risks to this position include reimbursement changes from Medicare and private payors, ongoing labor shortages and wage inflation for clinical staff, and potential new entrants or consolidation among competitors, but the current moat looks meaningful.

Innovation and R&D

Innovation and R&D Innovation at Encompass Health is focused less on traditional lab R&D and more on information technology, data science, and care model design. Its proprietary ACE IT electronic health record system creates a unified data backbone across all hospitals, while the Beacon analytics platform turns that data into operational and clinical insights. Predictive models—such as tools aimed at reducing transfers back to acute hospitals, preventing patient falls, and forecasting readmissions—support more proactive, personalized care and can improve both outcomes and costs. The company also invests in advanced rehabilitation equipment and continues to refine care pathways for complex neurological and orthopedic conditions. Looking ahead, further advances in predictive analytics, expansion of its hospital network, and greater use of telehealth and virtual follow‑up services are likely to be the main innovation levers, reinforcing its technology‑enabled care model rather than betting on high‑risk, binary R&D projects.

Summary

Taken together, Encompass Health looks like a growing, profitable operator of rehabilitation hospitals with a solid competitive moat built on scale, clinical expertise, and proprietary technology. The income statement shows steady revenue growth and improving earnings; the balance sheet reflects a capital‑intensive but generally sound financial structure with meaningful, somewhat declining leverage; and cash flows are robust enough to fund an active build‑out of new facilities. Its focus on data‑driven care, predictive analytics, and tight integration with acute care partners positions it well within a healthcare system that increasingly rewards outcomes and cost efficiency. The main things to watch are reimbursement policy shifts, labor cost and availability, the execution of its aggressive expansion pipeline, and continued investment discipline to ensure that new hospitals generate the returns needed to support ongoing growth.

NEWS

November 25, 2025 · 8:15 AM UTC

Encompass Health and Vanderbilt Health announce plans to build a 40-bed inpatient rehabilitation hospital in Lebanon, Tennessee

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November 21, 2025 · 8:15 AM UTC

Encompass Health announces plans to build a 50-bed inpatient rehabilitation hospital in Fishers, Indiana

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November 10, 2025 · 4:34 PM UTC

Rehabilitation Hospital of Amarillo now open in Texas

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October 29, 2025 · 4:20 PM UTC

Encompass Health reports results for third quarter 2025

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October 27, 2025 · 9:50 PM UTC

EHC Investor News: If You Have Suffered Losses in Encompass Health Corporation (NYSE: EHC), You Are Encouraged to Contact The Rosen Law Firm About Your Rights

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