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Mar 31
Encompass Health Q1 2025 Earnings Report
Encompass Health reported strong top- and bottom-line growth in Q1 2025, driven by higher patient volumes and pricing improvements.
Key Takeaways
The company posted robust revenue and EPS growth, with net income rising significantly year-over-year. Expanded capacity and efficient operations supported performance.
Revenue rose 10.6% year-over-year to $1.46 billion.
Adjusted EPS came in at $1.37, with GAAP EPS at $1.48.
Net income grew to $151.5 million from $112.5 million a year ago.
Expanded capacity with a new 40-bed hospital and 25 additional beds in existing facilities.
Encompass Health
Encompass Health
Forward Guidance
Encompass Health raised its full-year 2025 guidance for revenue, adjusted EBITDA, and adjusted EPS, reflecting confidence in continued growth momentum.
Positive Outlook
- Revenue guidance raised to $5.85B–$5.925B.
- Adjusted EBITDA guidance increased to $1.185B–$1.22B.
- Adjusted EPS guidance raised to $4.85–$5.10.
- Ongoing investment in hospital capacity expansion.
- Strong performance in Q1 sets a solid foundation for FY 2025.
Challenges Ahead
- No GAAP guidance provided due to forecast variability.
- Ongoing pressure from staffing and labor costs.
- Expected capital expenditures remain high.
- Macroeconomic and regulatory uncertainties persist.
- Continued dependence on favorable reimbursement trends.