- Encompass Health (EHC, Financial) reports 10.6% revenue growth in Q1 2025.
- Adjusted earnings per share increased by 22.3% to $1.37.
- Full-year 2025 revenue guidance raised to $5,850-$5,925 million.
Encompass Health (EHC) demonstrated robust financial performance in the first quarter of 2025, with net operating revenue climbing 10.6% to $1,455.4 million compared to the prior year. This growth was largely driven by a 6.3% increase in total discharges and a 3.9% rise in net patient revenue per discharge.
The company's income from continuing operations per diluted share rose by 33.3% to $1.48. Additionally, adjusted earnings per share improved by 22.3% to $1.37, showcasing the company's operational efficiency. The adjusted EBITDA grew by 14.9% to $313.6 million, affirming the positive financial trajectory.
Cash flows from operating activities surged 20.9% to reach $288.6 million, enabling Encompass Health to push ahead with its expansion strategy. Notably, during this quarter, EHC expanded its capacity with the opening of a new 40-bed hospital and added 25 beds to existing facilities.
Reflecting confidence in its ongoing momentum, Encompass Health increased its full-year 2025 guidance. The company now projects net operating revenue between $5,850 to $5,925 million, up from a previous forecast of $5,800 to $5,900 million. Adjusted earnings per share are expected to rise to a range of $4.85 to $5.10.
As a leader in inpatient rehabilitation hospitals across the United States, Encompass Health's improved financial metrics and raised guidance underscore its strong market position and effective operational strategy.
