Encompass Health Reports Strong Q2 Results and Raises Full-Year Guidance
Encompass Health (NYSE:EHC) reported second-quarter results exceeding expectations, leading to an upward revision of its full-year guidance for both revenue and profit. The company saw a 9.6% increase in net operating revenue to $1.597 billion and adjusted earnings per share rose by 10.7% to $1.55. Patient discharges grew by 5.6%, with same-store growth at 2.8%. Encompass also expanded its capacity, opening three new hospitals and adding beds in existing facilities. Despite these gains, the company faced rising costs due to increased capital spending on maintenance and expansion projects, which led to a decline in adjusted free cash flow by 4.8% to $177 million. Long-term debt rose as well, reaching $2.598 billion after issuing new bonds during the first half of the year. The company also raised its stock repurchase authorization from $145.8 million spent so far in 2026 to a total of $1 billion, reducing diluted shares outstanding and increasing earnings per share.
Tickers: $HSOA
Topics: financial performance healthcare rehabilitation hospitals