Overview

* Encompass Health Q2 2025 operating revenue grows 12% yr/yr, driven by discharges and pricing

* Adjusted EPS for Q2 beats analyst expectations, per LSEG data

* Company raises full-year guidance, indicating confidence in continued growth

Outlook

* Company increases full-year adjusted EBITDA guidance to $1.22 bln-$1.25 bln

* Full-year adjusted EPS guidance raised to $5.12-$5.34

Result Drivers

* DISCHARGES AND PRICING - Revenue growth driven by a 7.2% increase in discharges and a 4.2% rise in net patient revenue per discharge

* CAPACITY EXPANSION - Opened a new 60-bed hospital and added 26 beds to an existing facility, increasing capacity for inpatient rehabilitation care

* EXPENSE LEVERAGE - Adjusted EBITDA increased 17.2% due to revenue growth and improved expense leverage

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q2 $1.46

Operatin bln

g

Revenue

Q2 Beat $1.40 $1.21

Adjusted (12

EPS Analysts

)

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 13 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

* The average consensus recommendation for the healthcare facilities & services peer group is "buy"

* Wall Street's median 12-month price target for Encompass Health Corp ( EHC ) is $130.00, about 16.5% above its August 1 closing price of $108.53

* The stock recently traded at 20 times the next 12-month earnings vs. a P/E of 22 three months ago

Press Release:

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)