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 2025FY 2024FY 2023FY 2022
Total Revenues5,935,2005,373,2004,801,2004,348,600
Gross Profit5,935,2005,373,2004,801,2004,348,600
Selling, General & Administrative Expenses3,352,1003,110,2002,801,8002,547,600
Depreciation & Amortization Expenses327,900299,600273,900243,600
Other Operating Expenses1,202,1001,098,900993,700927,200
Operating Profit1,053,100864,500731,800630,200
Interest and Investment Income4,3003,0003,2002,900
Interest Expense(123,200)(138,000)(143,500)(177,100)
Non-Operating Income18,80020,10015,700(5,200)
Total Non-Operating Income(100,100)(114,900)(124,600)(179,400)
Income Before Provision for Income Taxes953,000749,600607,200450,800
Provision for Income Taxes192,900150,200132,200100,100
Consolidated Net Income760,100599,400475,000350,700
Net Income Attributable to Minority Interests and Other192,900140,900111,00093,600
Net Income Attributable to Discontinued Operations(1,000)(2,800)(12,000)15,200
Net Income Attributable to Common Shareholders566,200455,700352,000272,300
Basic EPS5.624.533.512.58
Diluted EPS5.544.463.472.56
Basic Weighted Average Shares Outstanding100,50099,90099,50099,200
Diluted Weighted Average Shares Outstanding102,200102,200101,300100,400
Shares Outstanding100,000100,775100,30099,800
FY 2025FY 2024FY 2023FY 2022
Cash and Cash Equivalents102,900123,100104,20053,400
Total Cash and Cash Equivalents102,900123,100104,20053,400
Accounts Receivable619,200598,800611,600536,800
Total Trade Receivables619,200598,800611,600536,800
Other Current Assets183,800165,000126,000127,000
Total Current Assets905,900886,900841,800717,200
Net Property, Plant & Equipment4,314,2003,846,8003,509,5003,151,700
Net Intangible Assets308,300297,800278,200282,300
Goodwill1,317,6001,284,0001,281,3001,263,200
Other Long-Term Assets243,700219,200191,600222,100
Total Assets7,089,7006,534,7006,102,4005,636,500
Accounts Payable178,200171,000170,000132,900
Accrued Expenses533,300473,700437,500392,200
Current Portion of Long-Term Debt43,600138,60024,80025,200
Current Portion of Leases26,50026,30024,10025,600
Other Current Liabilities54,80031,400
Total Current Liabilities836,400841,000656,400575,900
Long-Term Debt2,447,2002,359,2002,687,8002,741,800
Leases196,600189,700196,100199,700
Other Long-Term Liabilities333,700295,600264,900257,200
Total Long-Term Liabilities2,977,5002,844,5003,148,8003,198,700
Total Liabilities3,813,9003,685,5003,805,2003,774,600
Common Stock1,2001,2001,2001,100
Treasury Stock(722,500)(577,900)(547,200)(536,700)
Additional Paid-in Capital1,869,6001,847,0001,787,0001,730,200
Accumulated Other Comprehensive Income500
Retained Earnings1,289,400796,700406,500115,700
Total Common Shareholders' Equity2,438,2002,067,0001,647,5001,310,300
Minority Interests and Other837,600782,200649,700551,600
Total Shareholders' Equity3,275,8002,849,2002,297,2001,861,900
Total Liabilities and Shareholders' Equity7,089,7006,534,7006,102,4005,636,500
FY 2025FY 2024FY 2023FY 2022
Net Income759,100596,600463,000365,900
Depreciation & Amortization327,900299,600273,900243,600
Share-Based Compensation Expense56,50048,30050,60029,200
Other Adjustments28,20036,70017,00060,400
Changes in Trade Receivables(15,200)3,000(22,400)(16,900)
Changes in Accounts Payable(22,600)3,00011,8002,300
Changes in Accrued Expenses15,90020,40039,200(31,200)
Changes in Other Operating Activities26,200(4,500)21,70015,400
Cash from Operating Activities1,175,6001,002,800850,800705,800
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 Investments172,80018,9007,400
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 Debt210,00080,00060,000240,000
Repayments of Short-Term Debt(100,000)(60,000)(115,000)(385,000)
Net Issuance / (Repayments) of Short-Term Debt110,00020,000(55,000)(145,000)
Issuance of Long-Term Debt15,00020,00011,800
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)18,90050,800(66,900)

Key Metrics & Ratios

MetricValue
Market Cap$10.61B
P/E19.16x
P/S1.79x
EV/EBITDA10.18x
Return on Equity24.8%
Return on Invested Capital13.9%
Current Ratio1.08x
Dividend Yield0.7%
Free Cash Flow Margin7.4%

Margins

Gross margin
100.0%
Operating margin
17.7%
Net margin
9.5%

Quarterly Trend

QuarterRevenueYoY growthOperating marginOperating 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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