EHC
Encompass Health Corporation108.01
+0.42+0.39%
Dec 16, 4:00:02 PM EST
Earnings Call Transcripts
This Quarter (Q1 '26)
No earnings call transcript available yet
Last Quarter (Q4 '25)
FY Q4 '25
MA payer woes, TEAM no-hit
Q&A zeroed in on a Q4 Medicare Advantage snag with one national payer—high-single-digit referral growth but sharply lower conversions—spurring a novel admit-and-appeal strategy, CMS outreach, and VA backfill now at 19% of managed care with 22% YoY growth. TEAM model drew scant acute hospital focus, posting no volume impact after month one amid backfill via neuro/cardiac and ESRD exemptions. Labor efficiencies traced to market softening, targeted premium-pay fixes, and de novo ramps sans contract labor. Small-format 24-bed hospitals fleshed out for 2027 market density. No TEAM disruption yet. Confident regulators won't dent demand; watch MA fights.
Key Stats
Market Cap
10.88BP/E (TTM)
20.34Basic EPS (TTM)
5.31Dividend Yield
0.01%Recent Filings
8-K
Refinances $1B revolver to 2031
Encompass Health refinanced its prior credit agreement on March 9, 2026, with a new $1B revolving facility maturing March 9, 2031, led by Truist Bank. Terms mirror the old deal but extend maturity by nearly four years, cut undrawn fees by 5bps, relax investment/debt covenants, eliminate a SOFR adjustment, and boost the swingline sublimit to $40M from $25M. Post-close, it drew $250M to repay the old facility; covenants require 3.0x interest coverage and ≤4.5x leverage.
10-K
FY2025 results
Encompass Health drove FY2025 net operating revenues to $5.9B, up 10.5% y/y, with inpatient revenues hitting $5.8B on 263k discharges (6% y/y growth, 3.4% same-store) and net revenue per discharge rising 3.9% y/y amid reimbursement gains; Q4 momentum shone through capacity expansions adding 177 beds while same-store discharges accelerated. Salaries and benefits climbed 7.4% to $3.1B on volume and wage pressures, yet margins held as EPOB dipped to 3.37 and contract labor fell 17%. Free cash flow powered $736M capex, $158M buybacks, and $0.19/share dividends, backed by $824M revolver availability and no debt due until 2028. Medicare audits loom large, risking claim denials.
8-K
Q4 revenue up 9.9%
Encompass Health posted Q4 net operating revenue of $1,544.6 million, up 9.9% from $1,405.0 million, with discharges rising 5.3% to 67,238 and Adjusted EBITDA climbing 15.9% to $335.6 million. Full-year revenue hit $5,935.2 million, up 10.5%, fueled by 517 new beds across eight hospitals. Capacity expansions position it for aging population demand. 2026 guidance: revenue $6,365-$6,465 million.
8-K
Elects Hayes to board
Encompass Health elected Cain A. Hayes to its board on January 30, 2026, adding healthcare payor expertise from his CEO roles at Point32Health and Gateway Health. Independent under NYSE standards, he'll receive standard nonemployee director pay. Hayes bolsters strategic oversight in regulated markets. Succession planning continues.
8-K
Reiterates 2025 guidance
Encompass Health reiterated its full-year 2025 guidance ahead of senior management investor meetings on December 2-3, 2025. It expects net operating revenues of $5,905M-$5,955M, Adjusted EBITDA of $1,235M-$1,255M, and adjusted EPS of $5.22-$5.37. Guidance holds firm. Risks like infectious outbreaks loom large.
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