Encompass Health Q4 2024 Earnings Report

Key Takeaways

Encompass Health reported strong Q4 2024 results, driven by a 12.7% increase in revenue and a 13.6% rise in Adjusted EBITDA. The company's discharge growth of 7.8% was a key driver of revenue expansion. Net income also saw a significant rise compared to the prior year.

Total Revenue

$1.41B

Previous year: $1.25B

+12.7%

EPS

$1.17

Previous year: $0.95

+23.2%

Net Patient Revenue per Discharge

$21.4K

Previous year: $20.5K

+4.2%

Total Discharges

63.84K

Previous year: 59.25K

+7.8%

Gross Profit

$287M

Previous year: $243M

+18.0%

Cash and Equivalents

$123M

Previous year: $104M

+18.1%

Free Cash Flow

$79.5M

Previous year: -$21.6M

-468.1%

Total Assets

$6.53B

Previous year: $6.1B

+7.1%

Encompass Health Revenue

Encompass Health EPS

Encompass Health Revenue by Segment

Forward Guidance

Encompass Health expects continued revenue and earnings growth in 2025, driven by capacity expansion and increased patient volumes.

Positive Outlook

Revenue guidance between $5.8 billion and $5.9 billion.
Adjusted EBITDA projected to range from $1.16 billion to $1.2 billion.
Earnings per share expected to be between $4.67 and $4.96.
Continued expansion with new hospital additions.
Strong operational execution and patient demand.

Challenges Ahead

Higher cash tax payments expected.
Labor and wage inflation could impact margins.
Regulatory uncertainties in healthcare reimbursement.
Capital expenditure requirements for hospital expansions.
Potential macroeconomic headwinds affecting patient volumes.