{"id":990749,"date":"2026-08-05T23:10:06","date_gmt":"2026-08-06T03:10:06","guid":{"rendered":"https:\/\/www.marketnewsdesk.com\/index.php\/encompass-health-reports-results-for-second-quarter-2026\/"},"modified":"2026-08-05T23:10:06","modified_gmt":"2026-08-06T03:10:06","slug":"encompass-health-reports-results-for-second-quarter-2026","status":"publish","type":"post","link":"https:\/\/www.marketnewsdesk.com\/index.php\/encompass-health-reports-results-for-second-quarter-2026\/","title":{"rendered":"Encompass Health reports results for second quarter 2026"},"content":{"rendered":"
\n

PR Newswire<\/p>\n<\/p><\/div>\n

\n

\n Increases full-year guidance
<\/b>
\n Announces increase in common stock repurchase authorization<\/b>\n <\/p>\n

\n BIRMINGHAM, Ala.<\/span>, Aug. 5, 2026<\/span> \/PRNewswire\/ — Encompass Health Corporation (NYSE: EHC), the largest owner and operator of inpatient rehabilitation hospitals in the United States, today reported its results of operations for the second quarter ended June 30, 2026.<\/p>\n

\n

\n \"\"\n <\/p>\n<\/p><\/div>\n

\n Summary results<\/b>\n <\/p>\n

\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n
\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n

\n
\n Growth<\/b>
\n <\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n \n <\/td>\n\n

\n
\n Q2 2026<\/b>
\n <\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n
\n Q2 2025<\/b>
\n <\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n
\n Dollars<\/b>
\n <\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n
\n Percent<\/b>
\n <\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n \n <\/td>\n\n

\n (In Millions, Except Per Share Data)<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n Net operating revenue<\/span>\n <\/p>\n<\/td>\n

\n

\n $\u00a0\u00a0\u00a0\u00a0\u00a01,597.4<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n $\u00a0\u00a0\u00a0\u00a0\u00a01,457.7<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n $\u00a0\u00a0\u00a0\u00a0139.7<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n 9.6\u00a0%<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n Income from continuing operations attributable to
\u00a0 \u00a0 \u00a0Encompass Health per diluted share<\/span>\n <\/p>\n<\/td>\n

\n

\n 1.55<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n 1.40<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n 0.15<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n 10.7\u00a0%<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n Adjusted earnings per share<\/span>\n <\/p>\n<\/td>\n

\n

\n 1.55<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n 1.40<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n 0.15<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n 10.7\u00a0%<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n Cash flows provided by operating activities<\/span>\n <\/p>\n<\/td>\n

\n

\n 282.6<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n 270.2<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n 12.4<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n 4.6\u00a0%<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n Adjusted EBITDA<\/span>\n <\/p>\n<\/td>\n

\n

\n 348.0<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n 318.6<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n 29.4<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n 9.2\u00a0%<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n Adjusted free cash flow<\/span>\n <\/p>\n<\/td>\n

\n

\n 177.0<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n 185.9<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n (8.9)<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n (4.8)\u00a0%<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n<\/tr>\n
\n

\n (Actual Amounts)<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n<\/tr>\n
\n

\n Discharges<\/span>\n <\/p>\n<\/td>\n

\n

\n 68,895<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n 65,237<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n

\n 5.6\u00a0%<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n \u00a0\u00a0 Same-store discharge growth<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n

\n 2.8\u00a0%<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n Net patient revenue per discharge<\/span>\n <\/p>\n<\/td>\n

\n

\n $\u00a0\u00a0\u00a0\u00a0\u00a0\u00a022,521<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n $\u00a0\u00a0\u00a0\u00a0\u00a0\u00a021,670<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n

\n 3.9\u00a0%<\/span>\n <\/p>\n<\/td>\n<\/tr>\n<\/table><\/div>\n

See attached supplemental information for calculations of non-GAAP measures and reconciliations to their most comparable GAAP measure.<\/p>\n

“We are very pleased with our performance for the second quarter, as revenue increased 9.6% and Adjusted EBITDA grew 9.2%,” said Mark Tarr, President and Chief Executive Officer. “Through the first half of the year, we have opened three hospitals totaling 139 beds and added 54 beds to existing hospitals. We expect to open five additional hospitals and add more than 100 beds to existing facilities before year end, further increasing access to high-quality inpatient rehabilitation care. Our value proposition and disciplined operating strategy continue to be validated, and we remain highly optimistic about the long-term prospects of our business.”<\/p>\n

\n 2026 Guidance<\/b>\u00a0<\/p>\n

The Company increased its full-year guidance as follows:\u00a0<\/p>\n

\n\n\n\n\n\n\n\n
\n \n <\/td>\n\n

\n
\n Full-Year 2026 Guidance<\/b>
\n <\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n \n <\/td>\n\n

\n Previous Guidance<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n Updated Guidance<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n \n <\/td>\n\n

\n (In Millions, Except Per Share Data)<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n Net operating revenue<\/span>\n <\/p>\n<\/td>\n

\n

\n $6,375 to $6,470<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n $6,410 to $6,490<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n Adjusted EBITDA<\/span>\n <\/p>\n<\/td>\n

\n

\n $1,350 to $1,380<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n $1,365 to $1,395<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n Adjusted earnings per share from continuing operations
\u00a0 \u00a0 \u00a0attributable to Encompass Health<\/span>\n <\/p>\n<\/td>\n

\n

\n $5.89 to $6.11<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n $6.02 to $6.25<\/span>\n <\/p>\n<\/td>\n<\/tr>\n<\/table><\/div>\n

For considerations regarding the Company’s 2026 guidance, see the supplemental information posted on the Company’s website at http:\/\/investor.encompasshealth.com<\/a>. See also the “Other information” section below for an explanation of why the Company does not provide guidance for comparable GAAP measures for Adjusted EBITDA and adjusted earnings per share.<\/p>\n

\n Common stock repurchase authorization<\/b>\n <\/p>\n

On July 23, 2026, the Company’s board of directors approved an increase in the aggregate common stock repurchase authorization to $1 billion. The Company repurchased $145.8 million of its common stock year to date and had approximately $188 million remaining under the prior authorization as of June 30, 2026.<\/p>\n

\n Earnings conference call and webcast<\/b>\n <\/p>\n

The Company will host an investor conference call at 10:00 a.m. Eastern Time on Thursday, August\u00a06, 2026 to discuss its results for the second quarter of 2026. For reference during the call, the Company will post certain supplemental information at http:\/\/investor.encompasshealth.com<\/a>.<\/p>\n

The conference call may be accessed by dialing 833 354-6854 and giving the conference ID EHCQ226. International callers should dial 785 838-9343 and give the same conference ID. Please call approximately ten minutes before the start of the call to ensure you are connected.\u00a0The conference call will also be webcast live and will be available for on-line replay at http:\/\/investor.encompasshealth.com<\/a> by clicking on an available link.<\/p>\n

\n About Encompass Health<\/b>\n <\/p>\n

Encompass Health (NYSE: EHC) is the largest owner and operator of inpatient rehabilitation hospitals in the United States. With a national footprint that includes 176 hospitals in 39 states and Puerto Rico, the Company provides high-quality, compassionate rehabilitative care for patients recovering from a major injury or illness, using advanced technology and innovative treatments to maximize recovery. Encompass Health is recognized by Newsweek<\/i>\u00a0as America’s Most Awarded Leader in Inpatient Rehabilitation and is\u00a0 ranked among Fortune’s<\/i> World’s Most Admired Companies\u21221<\/sup>\u00a0and Forbes’<\/i>\u00a0America’s Best Companies. It is also recognized by Becker’s Healthcare and Modern Healthcare as a top healthcare employer. For more information, visit encompasshealth.com, or follow us on our newsroom, X, Instagram and Facebook.<\/p>\n

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\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n<\/tr>\n
\n

\n
\n 1<\/sup>\u00a0From Fortune. \u00a9 2026 Fortune Media IP Limited. All rights reserved. Fortune\u00ae is a registered trademark and Fortune World’s Most Admired Companies\u2122 is trademark of Fortune Media IP Limited and are used under license. Fortune and Fortune Media IP Limited are not affiliated with, and do not endorse products or services of, Encompass Health.<\/i><\/span>\n <\/p>\n<\/td>\n<\/tr>\n<\/table><\/div>\n

\n Other information<\/b>\n <\/p>\n

The information in this press release is summarized and should be read in conjunction with the Company’s Quarterly Report on Form 10-Q for the quarter ended June\u00a030, 2026 (the “June 2026 Form 10-Q”), when filed, as well as the Company’s Current Report on Form 8-K filed on August\u00a05, 2026 (the “Q2 Earnings Form 8-K”), to which this press release is attached as Exhibit\u00a099.1. In addition, the Company will post supplemental information today on its website at http:\/\/investor.encompasshealth.com<\/a> for reference during its August\u00a06, 2026 earnings call.<\/p>\n

The financial data contained in the press release and supplemental information include non-GAAP financial measures, including the Company’s adjusted earnings per share, leverage ratio, Adjusted EBITDA, and adjusted free cash flow. Reconciliations to their most comparable GAAP measure, except with regard to non-GAAP guidance, are included below or in the Q2 Earnings Form 8-K. Readers are encouraged to review the “Note Regarding Presentation of Non-GAAP Financial Measures” included in the Q2 Earnings Form 8-K which provides further explanation and disclosure regarding the Company’s use of these non-GAAP financial measures.<\/p>\n

Excluding net operating revenues, the Company does not provide guidance on a GAAP basis because it is unable to predict, with reasonable certainty, the future impact of items that are deemed to be outside the control of the Company or otherwise not indicative of its ongoing operating performance. Such items include government, class action, and related settlements; professional fees\u2014accounting, tax, and legal; mark-to-market adjustments for stock appreciation rights; gains or losses related to hedging instruments; loss on early extinguishment of debt; adjustments to its income tax provision (such as valuation allowance adjustments and settlements of income tax claims); items related to corporate and facility restructurings; and certain other items the Company believes to be not indicative of its ongoing operations. These items cannot be reasonably predicted and will depend on several factors, including industry and market conditions, and could be material to the Company’s results computed in accordance with GAAP.<\/p>\n

However, the following reasonably estimable GAAP measures for 2026 would be included in a reconciliation for Adjusted EBITDA if the other reconciling GAAP measures could be reasonably predicted:<\/p>\n