Encompass Health Corporation

Latest Results (31.07.2026):

Encompass Health Corporation reported results for the first quarter of 2026 (Q1 2026). The company posted net operating revenue of $1,586.6 million (up 9.0% year-over-year) and Adjusted EBITDA of $348.8 million (up 11.2%). Diluted income from continuing operations was $1.77 per share (vs. $1.48), and adjusted earnings per share were $1.60 (vs. $1.37). Net income attributable to Encompass Health was $194.5 million for the quarter.

Top-line and profitability

Net operating revenue: $1,586.6M, +9.0% vs Q1 2025. Adjusted EBITDA: $348.8M, +11.2% vs prior year. Income from continuing operations (diluted): $1.77 per share, up 19.6% YoY.

Adjusted EPS

Adjusted earnings per share (continuing operations): $1.60 in Q1 2026, compared with $1.37 in Q1 2025 (a 16.8% increase after adjustments identified by the company).

Volume and revenue mix

Discharges: 67,763 (up 4.3% YoY); same-store discharge growth: 1.6%. Net patient revenue per discharge: $22,633, +3.7% vs Q1 2025.

Cash flow and free cash flow

Cash flows provided by operating activities: $313.1M, +8.5% YoY. Adjusted free cash flow: $193.8M, down 12.9% from $222.4M, driven by higher distributions and capital spending.

Capital spending, M&A and development

Capital expenditures (purchases of property, equipment and intangibles) were $162.4M in the quarter. The company opened a new 49‑bed hospital in Irmo, SC, added 44 beds across existing facilities, and plans to open 8 hospitals (totaling ~389 beds) and add ~175 beds to existing hospitals in 2026.

Guidance update

Encompass Health raised full‑year 2026 guidance: net operating revenue updated to $6,375–$6,470M (from $6,365–$6,465M); Adjusted EBITDA updated to $1,350–$1,380M (from $1,340–$1,380M); adjusted EPS from continuing operations updated to $5.89–$6.11 (from $5.81–$6.10).

Capital allocation and balance sheet

Q1 activity included $71.6M of common stock repurchases, $20.3M of common dividends, and distributions of $57.8M to noncontrolling interests. Cash and cash equivalents were $110.5M (total cash, cash equivalents and restricted cash $163.4M) at March 31, 2026; long‑term debt, net of current portion, was $2,530.9M.

Non‑GAAP disclosures

The release includes non‑GAAP measures (Adjusted EBITDA, adjusted EPS, adjusted free cash flow) and reconciliations to GAAP amounts; the company notes certain GAAP items are excluded from forward‑looking non‑GAAP guidance because they cannot be reasonably predicted.