Encompass Health Corp Reports Strong Q2 2025 Performance

Encompass Health Corporation (EHC), a leading provider of inpatient rehabilitative healthcare services in the United States, has reported a robust financial performance for the second quarter of 2025. The company, headquartered in Birmingham, Alabama, announced a 12% increase in revenue, surpassing the consensus estimate of $1.427 billion with actual revenue reaching $1.46 billion (GAAP). This growth is a testament to the company’s strategic expansions and effective cost management strategies.

Key Financial Highlights

  • Revenue Growth: The company’s revenue rose by 12.0% to $1.46 billion in Q2 2025, exceeding expectations.
  • Earnings Per Share (EPS): EHC reported an EPS of $1.40, beating the market estimates.
  • Market Reaction: Following the earnings report, UBS raised its price target for Encompass Health to $140, reflecting confidence in the company’s growth trajectory.

Strategic Developments

Encompass Health has been actively expanding its rehabilitation capacity, which has contributed significantly to its revenue growth. The company’s strategic hospital expansions and enhancements in service offerings have positioned it well within the competitive landscape of health care providers and services.

Financial Position and Market Outlook

As of August 4, 2025, Encompass Health’s stock closed at $113.88 on the New York Stock Exchange. The company’s market capitalization stands at $11.12 billion, with a price-to-earnings ratio of 23.882. The stock has seen a 52-week high of $123.13 and a low of $85.21, indicating a strong recovery and positive investor sentiment.

Future Guidance

In light of its strong performance, Encompass Health has increased its full-year guidance, signaling confidence in its operational strategies and market position. The company continues to focus on expanding its inpatient rehabilitation hospitals, outpatient and rehabilitation satellites, and home health agencies.

Conclusion

Encompass Health’s Q2 2025 results highlight its ability to deliver strong financial performance through strategic growth initiatives and effective cost management. With increased guidance and a positive outlook from analysts, the company is well-positioned to continue its growth trajectory in the health care sector.