Encompass Health Corp

Listed Company

EHCCIK 0000785161NYSELarge AcceleratedServices-HospitalsDelawareFY ends Dec 31

Period

FY 2025

Revenue

$5.94B

Net Income

$566.20M

Total Assets

$7.09B

Equity

$2.44B

Shares Out

99.42M

Op. Cash Flow

$1.18B

Business

Encompass Health Corp operates a national network of inpatient rehabilitation hospitals providing specialized post-acute rehabilitative care. Its primary services include intensive inpatient rehabilitation across diagnoses (stroke, brain injury, hip fracture, spinal cord injury), outpatient therapy, clinical case management, and technology-enabled post-acute solutions. The business is organized around its inpatient rehabilitation operations and outpatient and other services, including joint ventures with acute-care hospitals and centralized support functions for clinical quality and innovation. It serves patients in 38 states and Puerto Rico, with referrals primarily from acute-care hospitals and reimbursement largely through Medicare, Medicare Advantage, and managed care payors.

Summary from filing dated 2025-02-28

Financials

Consolidated Statement of Income

Year Ended · In millions, except per-share amounts

Concept	FY 2025 2025-12-31	FY 2024 2024-12-31	FY 2023 2023-12-31	FY 2022 2022-12-31	FY 2021 2021-12-31
Net operating revenues	5,935	5,373	4,801	4,349	4,015
Salaries and benefits	3,116	2,901	2,600	2,393	2,127
Other operating expenses	889	803	719	670	596
Occupancy costs	59	57	56	55	59
Supplies	254	239	218	202	184
General and administrative expenses	236	209	202	154	170
Depreciation and amortization	328	300	274	244	220
Total operating expenses	4,882	4,509	4,069	3,718	3,356
Loss on early extinguishment of debt	0	600,000	0	1	1
Interest expense and amortization of debt discounts and fees	123	137	144	176	—
Other income	−19	−20	−16	5	−8
Equity in net income of nonconsolidated affiliates	−4	−3	−3	−3	−3
Income from continuing operations before income tax expense	953	750	607	451	505
Provision for income tax expense	193	150	132	100	102
Income from continuing operations	760	599	475	351	403
Loss from discontinued operations, net of tax	−1	−3	−12	15	114
Net income	759	597	463	366	517
Less: Net income attributable to noncontrolling interests	−193	−141	−111	−95	−105
Net income attributable to Encompass Health	566	456	352	271	412
Basic (in shares)	101	100	100	99	99
Diluted (in shares)	102	102	101	100	100
Continuing operations (in dollars per share)	5.63	4.56	3.63	2.58	3.02
Discontinued operations (in dollars per share)	−0.01	−0.03	−0.12	0.14	1.13
Net income (in dollars per share)	5.62	4.53	3.51	2.72	4.15
Continuing operations (in dollars per share)	5.55	4.49	3.59	2.56	2.99
Discontinued operations (in dollars per share)	−0.01	−0.03	−0.12	0.14	1.12
Net income (in dollars per share)	5.54	4.46	3.47	2.7	4.11
Income from continuing operations	567	459	364	257	300
Loss from discontinued operations, net of tax	−1	−3	−12	14	112

Consolidated Balance Sheet

As of · In millions, except per-share amounts

Concept	FY 2025 2025-12-31	FY 2024 2024-12-31	FY 2023 2023-12-31	FY 2022 2022-12-31	FY 2021 2021-12-31
Cash and cash equivalents	72	85	69	22	49
Restricted cash	31	38	35	32	63
Accounts receivable	619	599	612	537	516
Prepaid expenses	54	42	35	35	—
Other current assets	130	123	92	92	—
Total current assets	906	887	842	717	921
Property and equipment, net	4,102	3,643	3,301	2,939	2,581
Operating lease right-of-use assets	213	204	209	213	194
Goodwill	1,318	1,284	1,281	1,263	1,237
Intangible assets, net	308	298	278	282	158
Other long-term assets	244	219	192	222	230
Total assets	7,090	6,535	6,102	5,637	6,865
Current portion of long-term debt	44	139	25	25	38
Current operating lease liabilities	27	26	24	26	24
Accounts payable	178	171	170	133	134
Accrued payroll	244	228	208	168	199
Accrued distributions	55	31	—	—	—
Other current liabilities	290	246	187	181	177
Total current liabilities	836	841	656	576	749
Long-term debt, net of current portion	2,447	2,359	2,688	2,742	3,241
Long-term operating lease liabilities	197	190	196	200	180
Self-insured risks	153	139	132	129	124
Deferred income tax liabilities	127	105	87	83	23
Other long-term liabilities	54	52	46	46	49
Total liabilities	3,814	3,686	3,805	3,775	4,466
Commitments and contingencies	—	—	—	—	—
Redeemable noncontrolling interests	58	57	42	36	42
Common stock, $.01 par value; 200,000,000 shares authorized; issued: 116,036,500 in 2025; 116,036,500 in 2024	1	1	1	1	1
Capital in excess of par value	1,870	1,847	1,787	1,730	2,290
Accumulated income	1,289	797	407	116	142
Accumulated other comprehensive income	500,000	0	—	—	—
Treasury stock, at cost (16,039,648 shares in 2025 and 15,261,136 shares in 2024)	−723	−578	−547	−537	−521
Total Encompass Health shareholders equity	2,438	2,067	1,648	1,310	1,911
Noncontrolling interests	779	726	608	516	446
Total shareholders equity	3,218	2,793	2,255	1,826	2,357
Total liabilities and shareholders equity	7,090	6,535	6,102	5,637	6,865

Consolidated Statement of Cash Flows

Year Ended · In millions, except per-share amounts

Concept	FY 2025 2025-12-31	FY 2024 2024-12-31	FY 2023 2023-12-31	FY 2022 2022-12-31	FY 2021 2021-12-31
Amortization of debt-related items	10	10	10	10	8
Distributions from nonconsolidated affiliates	4	4	2	4	3
Stock-based compensation	57	48	51	29	29
Deferred tax expense	22	11	4	28	17
Other, net	−4	15	5	20	−3
Accounts receivable	−15	3	−22	−17	−40
Prepaid expenses and other assets	−31	−57	6	8	−42
Accounts payable	−23	3	12	2	16
Accrued payroll	16	20	39	−31	−30
Other liabilities	57	53	16	7	−14
Net cash used in operating activities of discontinued operations	−1	−3	−16	52	151
Total adjustments	416	403	376	355	313
Net cash provided by operating activities	1,176	1,003	851	706	716
Purchases of property, equipment, and intangible assets	−736	−643	−583	−584	−546
Proceeds from sale of restricted investments	173	19	7	0	0
Purchases of restricted investments	−184	−23	−23	−35	−9
Other, net	−17	−7	−4	−4	8
Net cash used in investing activities	−765	−653	−603	−627	−666
Principal payments on debt, including pre-payments	−115	−255	−7	−346	−215
Principal borrowings on notes	0	15	20	12	0
Borrowings on revolving credit facility	210	80	60	240	300
Payments on revolving credit facility	−100	−60	−115	−385	−100
Principal payments under finance lease obligations	−24	−22	−41	−19	−45
Repurchases of common stock, including fees and expenses	−158	−31	0	0	0
Dividends paid on common stock	−71	−63	−60	−99	−112
Distributions paid to noncontrolling interests of consolidated affiliates	−152	−125	−115	−97	−101
Taxes paid on behalf of employees for shares withheld	−20	−12	−8	−7	−15
Contributions from noncontrolling interests of consolidated affiliates	2	140	68	64	57
Other, net	−3	2	1	300,000	−100,000
Net cash used in financing activities	−431	−331	−197	−146	−240
(Decrease) increase in cash, cash equivalents, and restricted cash	−20	19	51	−67	−191
Interest	−133	−147	−148	−178	−168
Accrued purchases of property, equipment, and intangible assets	30	2	27	−4	7
Joint venture contributions	35	12	32	29	15

Filings

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