Business Description
Encompass Health Corporation is the largest owner and operator of inpatient rehabilitation hospitals in the United States. Headquartered in Birmingham, Alabama, the company operates over 170 hospitals across 39 states and Puerto Rico. It specializes in providing facility-based rehabilitative care to patients recovering from major illnesses, surgeries, and neurological conditions.
Financial Statements
In thousands, USD
| FY 2025 | FY 2024 | FY 2023 | FY 2022 | |
|---|---|---|---|---|
| Total Revenues | 5,935,200 | 5,373,200 | 4,801,200 | 4,348,600 |
| Gross Profit | 5,935,200 | 5,373,200 | 4,801,200 | 4,348,600 |
| Selling, General & Administrative Expenses | 3,352,100 | 3,110,200 | 2,801,800 | 2,547,600 |
| Depreciation & Amortization Expenses | 327,900 | 299,600 | 273,900 | 243,600 |
| Other Operating Expenses | 1,202,100 | 1,098,900 | 993,700 | 927,200 |
| Operating Profit | 1,053,100 | 864,500 | 731,800 | 630,200 |
| Interest and Investment Income | 4,300 | 3,000 | 3,200 | 2,900 |
| Interest Expense | (123,200) | (138,000) | (143,500) | (177,100) |
| Non-Operating Income | 18,800 | 20,100 | 15,700 | (5,200) |
| Total Non-Operating Income | (100,100) | (114,900) | (124,600) | (179,400) |
| Income Before Provision for Income Taxes | 953,000 | 749,600 | 607,200 | 450,800 |
| Provision for Income Taxes | 192,900 | 150,200 | 132,200 | 100,100 |
| Consolidated Net Income | 760,100 | 599,400 | 475,000 | 350,700 |
| Net Income Attributable to Minority Interests and Other | 192,900 | 140,900 | 111,000 | 93,600 |
| Net Income Attributable to Discontinued Operations | (1,000) | (2,800) | (12,000) | 15,200 |
| Net Income Attributable to Common Shareholders | 566,200 | 455,700 | 352,000 | 272,300 |
| Basic EPS | 5.62 | 4.53 | 3.51 | 2.58 |
| Diluted EPS | 5.54 | 4.46 | 3.47 | 2.56 |
| Basic Weighted Average Shares Outstanding | 100,500 | 99,900 | 99,500 | 99,200 |
| Diluted Weighted Average Shares Outstanding | 102,200 | 102,200 | 101,300 | 100,400 |
| Shares Outstanding | 100,000 | 100,775 | 100,300 | 99,800 |
| FY 2025 | FY 2024 | FY 2023 | FY 2022 | |
|---|---|---|---|---|
| Cash and Cash Equivalents | 102,900 | 123,100 | 104,200 | 53,400 |
| Total Cash and Cash Equivalents | 102,900 | 123,100 | 104,200 | 53,400 |
| Accounts Receivable | 619,200 | 598,800 | 611,600 | 536,800 |
| Total Trade Receivables | 619,200 | 598,800 | 611,600 | 536,800 |
| Other Current Assets | 183,800 | 165,000 | 126,000 | 127,000 |
| Total Current Assets | 905,900 | 886,900 | 841,800 | 717,200 |
| Net Property, Plant & Equipment | 4,314,200 | 3,846,800 | 3,509,500 | 3,151,700 |
| Net Intangible Assets | 308,300 | 297,800 | 278,200 | 282,300 |
| Goodwill | 1,317,600 | 1,284,000 | 1,281,300 | 1,263,200 |
| Other Long-Term Assets | 243,700 | 219,200 | 191,600 | 222,100 |
| Total Assets | 7,089,700 | 6,534,700 | 6,102,400 | 5,636,500 |
| Accounts Payable | 178,200 | 171,000 | 170,000 | 132,900 |
| Accrued Expenses | 533,300 | 473,700 | 437,500 | 392,200 |
| Current Portion of Long-Term Debt | 43,600 | 138,600 | 24,800 | 25,200 |
| Current Portion of Leases | 26,500 | 26,300 | 24,100 | 25,600 |
| Other Current Liabilities | 54,800 | 31,400 | — | — |
| Total Current Liabilities | 836,400 | 841,000 | 656,400 | 575,900 |
| Long-Term Debt | 2,447,200 | 2,359,200 | 2,687,800 | 2,741,800 |
| Leases | 196,600 | 189,700 | 196,100 | 199,700 |
| Other Long-Term Liabilities | 333,700 | 295,600 | 264,900 | 257,200 |
| Total Long-Term Liabilities | 2,977,500 | 2,844,500 | 3,148,800 | 3,198,700 |
| Total Liabilities | 3,813,900 | 3,685,500 | 3,805,200 | 3,774,600 |
| Common Stock | 1,200 | 1,200 | 1,200 | 1,100 |
| Treasury Stock | (722,500) | (577,900) | (547,200) | (536,700) |
| Additional Paid-in Capital | 1,869,600 | 1,847,000 | 1,787,000 | 1,730,200 |
| Accumulated Other Comprehensive Income | 500 | — | — | — |
| Retained Earnings | 1,289,400 | 796,700 | 406,500 | 115,700 |
| Total Common Shareholders' Equity | 2,438,200 | 2,067,000 | 1,647,500 | 1,310,300 |
| Minority Interests and Other | 837,600 | 782,200 | 649,700 | 551,600 |
| Total Shareholders' Equity | 3,275,800 | 2,849,200 | 2,297,200 | 1,861,900 |
| Total Liabilities and Shareholders' Equity | 7,089,700 | 6,534,700 | 6,102,400 | 5,636,500 |
| FY 2025 | FY 2024 | FY 2023 | FY 2022 | |
|---|---|---|---|---|
| Net Income | 759,100 | 596,600 | 463,000 | 365,900 |
| Depreciation & Amortization | 327,900 | 299,600 | 273,900 | 243,600 |
| Share-Based Compensation Expense | 56,500 | 48,300 | 50,600 | 29,200 |
| Other Adjustments | 28,200 | 36,700 | 17,000 | 60,400 |
| Changes in Trade Receivables | (15,200) | 3,000 | (22,400) | (16,900) |
| Changes in Accounts Payable | (22,600) | 3,000 | 11,800 | 2,300 |
| Changes in Accrued Expenses | 15,900 | 20,400 | 39,200 | (31,200) |
| Changes in Other Operating Activities | 26,200 | (4,500) | 21,700 | 15,400 |
| Cash from Operating Activities | 1,175,600 | 1,002,800 | 850,800 | 705,800 |
| Capital Expenditure | (736,400) | (642,500) | (583,100) | (584,100) |
| Purchases of Investments | (184,400) | (22,500) | (23,000) | (35,200) |
| Proceeds from Sale of Investments | 172,800 | 18,900 | 7,400 | — |
| Other Investing Activities | (16,600) | (7,200) | (4,100) | (4,200) |
| Cash from Investing Activities | (764,600) | (653,300) | (602,800) | (627,000) |
| Issuance of Short-Term Debt | 210,000 | 80,000 | 60,000 | 240,000 |
| Repayments of Short-Term Debt | (100,000) | (60,000) | (115,000) | (385,000) |
| Net Issuance / (Repayments) of Short-Term Debt | 110,000 | 20,000 | (55,000) | (145,000) |
| Issuance of Long-Term Debt | — | 15,000 | 20,000 | 11,800 |
| Repayments of Long-Term Debt | (115,100) | (255,200) | (7,200) | (345,800) |
| Net Issuance / (Repayments) of Long-Term Debt | (115,100) | (240,200) | 12,800 | (334,000) |
| Repurchases of Common Shares | (158,000) | (31,100) | — | — |
| Net Issuance / (Repurchases) of Common Shares | (158,000) | (31,100) | — | — |
| Common Share Dividends Paid | (71,100) | (62,800) | (60,400) | (99,000) |
| Other Financing Activities | (197,000) | (16,500) | (94,600) | (82,800) |
| Cash from Financing Activities | (431,200) | (330,600) | (197,200) | (145,700) |
| Increase / (Decrease) in Cash, Cash Equivalents and Restricted Cash | (20,200) | 18,900 | 50,800 | (66,900) |
Key Metrics & Ratios
| Metric | Value |
|---|---|
| Market Cap | $10.61B |
| P/E | 19.16x |
| P/S | 1.79x |
| EV/EBITDA | 10.18x |
| Return on Equity | 24.8% |
| Return on Invested Capital | 13.9% |
| Current Ratio | 1.08x |
| Dividend Yield | 0.7% |
| Free Cash Flow Margin | 7.4% |
Margins
Gross margin
100.0%
Operating margin
17.7%
Net margin
9.5%
Quarterly Trend
| Quarter | Revenue | YoY growth | Operating margin | Operating income |
|---|---|---|---|---|
| Q2 2026 | $1.60B | +9.6% | 18.1% | $288M |
| Q1 2026 | $1.59B | +9.0% | 19.0% | $302M |
| Q4 2025 | $1.54B | +9.9% | 18.3% | $283M |
| Q3 2025 | $1.48B | +9.4% | 16.5% | $244M |
| Q2 2025 | $1.46B | — | 17.8% | $259M |
| Q1 2025 | $1.46B | — | 18.3% | $267M |
| Q4 2024 | $1.41B | — | 16.5% | $232M |
| Q3 2024 | $1.35B | — | 15.5% | $209M |
More on Encompass Health Corporation
Figures compiled from public company filings.
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