Encompass Health reported FY 2025 net operating revenues of USD 5.9 billion, up 10.5%, driven primarily by higher volumes and favorable pricing. FY 2025 net income was USD 759.1 million (up 27.2%), while net income attributable to shareholders was USD 566.2 million (up 24.2%). FY 2025 income from continuing operations was USD 760.1 million (up 26.8%), and FY 2025 adjusted EBITDA was USD 1.3 billion. Cash flow from operations in FY 2025 was USD 1.2 billion, with capital expenditures of approximately USD 736 million; the company ended FY 2025 with USD 72.2 million in cash and about USD 824 million available under its revolving credit facility. Operationally, Encompass Health said it remained the largest U.S. owner and operator of inpatient rehabilitation hospitals and finished 2025 with 173 hospitals. During 2025 it opened new inpatient rehabilitation hospitals in Athens, Georgia; Fort Myers, Florida; Daytona Beach, Florida; Danbury, Connecticut; St. Petersburg, Florida; Amarillo, Texas; and Lake Worth, Florida, and added 177 new beds to existing hospitals, including a 50-bed remote hospital in Wildwood, Florida (The Villages). It also highlighted CMS’ FY 2026 IRF final rule, which it expects to increase Medicare payment rates by approximately 2.9% effective October 1, 2025, and noted CMS’ expansion of the review choice demonstration to Texas (effective March 2, 2026) and California (effective May 1, 2026), which it expects will apply to 33 of its hospitals and about 11.9% of its IRF Medicare claims.
Disclaimer: This news brief was created by Public Technologies (PUBT) using generative artificial intelligence. While PUBT strives to provide accurate and timely information, this AI-generated content is for informational purposes only and should not be interpreted as financial, investment, or legal advice. Encompass Health Corporation published the original content used to generate this news brief via EDGAR, the Electronic Data Gathering, Analysis, and Retrieval system operated by the U.S. Securities and Exchange Commission (Ref. ID: 0000785161-26-000081), on February 26, 2026, and is solely responsible for the information contained therein.
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