Thu, May 1, 7:26 PM (14 days ago)
**Encompass Health Corporation (EHC) Q1 2025 Financial Summary** **Financial Health and Performance:** - **Revenue Growth:** Net operating revenues increased by 10.6% to $1,455.4 million, driven by volume growth and increased pricing. - **Profit Margins:** Operating expenses rose by 7.2% to $1,188.4 million, but income from continuing operations before tax increased by 33.7% to $238.6 million. - **Net Income:** Net income attributable to Encompass Health increased by 34.7% to $151.5 million. - **Cash Flow:** Net cash provided by operating activities increased by 20.8% to $288.6 million. Capital expenditures were $163.1 million, primarily for property, equipment, and intangible assets. **Key Metrics:** - **Earnings per Share (EPS):** Basic EPS was $1.50, up from $1.12 in Q1 2024. Diluted EPS was $1.48, up from $1.10. - **Operating Expenses:** Salaries and benefits increased by 7.1% to $762.3 million, while other operating expenses rose by 6.7% to $217.5 million. - **Debt and Liquidity:** Long-term debt stood at $2,333.2 million. The company had $95.8 million in cash and cash equivalents and $953 million available under its revolving credit facility. **Trends and Uncertainties:** - **Demographic Trends:** Aging population and increasing Medicare enrollment support long-term demand. - **Regulatory Uncertainty:** Changes in Medicare reimbursement and healthcare regulations pose risks. - **Operational Challenges:** Staffing shortages and competitive pressures in the healthcare industry. **Future Operations and Impact:** - **Expansion:** The company is expanding capacity with new hospitals and bed additions. - **Shareholder Returns:** Continued share repurchases and dividend payments, with $458 million remaining under the repurchase authorization. - **Capital Expenditures:** Planned spending of $755 million to $790 million for capital expenditures in 2025, with significant projects under construction. **Conclusion:** Encompass Health Corporation demonstrated strong financial performance in Q1 2025, with robust revenue growth and improved profitability. The company is well-positioned to capitalize on demographic trends and expand its operations, despite regulatory and operational challenges. The focus on shareholder returns and strategic investments underscores a positive outlook for future growth.