On this page of StockholderLetter.com we present the latest annual shareholder letter from Encompass Health Corp — ticker symbol EHC. Reading current and past EHC letters to shareholders can bring important insights into the investment thesis.

 •  4/7/2026 Letter Continued (Full PDF)
 •  4/3/2023 EHC Stockholder Letter
 •  4/2/2024 EHC Stockholder Letter
 •  4/1/2025 EHC Stockholder Letter
 •  More "Hospital & Medical Practitioners" Category Stockholder Letters
 •  EHC Benford's Law Stock Score = 76

EHC Shareholder/Stockholder Letter Transcript:

Annual Report 2025
ENCOMPASS HEALTH

Encompass Health Corporation

1
Owner and operator of
inpatient rehabilitation
hospitals in terms
of patients treated,
revenues and number
of hospitals
173
Number of
states in which
we operate
39
and Puerto Rico
Inpatient rehabilitation
hospitals
*as of December 31, 2025
   2026 Fortune Media IP Limited. All rights reserved. Fortune   is a registered trademark and Fortune World   s Most Admired Companies    is trademark of Fortune Media IP Limited
and are used under license. Fortune and Fortune Media IP Limited are not affiliated with, and do not endorse products or services of, Encompass Health.

Financial highlights 2025
$1,267.9
$5,935.2
million in net operating
revenue     up 10.5%
from 2024
$817.9
million in adjusted EBITDA    
up 14.9% from 2024
1.9x
net leverage ratio,
down from 2.2x in 2024
million in adjusted free cash
   ow - up 18.5% from 2024
2023-2027 GROWTH TARGETS
We are well positioned
for future growth
6 to 10
de novos per year
80 to 120
bed additions per year
6% to 8%
discharge CAGR
Disclosures, including reconciliations to the most comparable
GAAP    nancial measure, for non-GAAP    nancial information can
be found in Appendix A to the Proxy Statement herein and at the
end of the letter from the Chairman and CEO in this Annual Report.

Operational highlights 2025
Capacity expansion
    Opened 8 hospitals, adding 390 beds
    Added 127 beds to existing hospitals
    A total of 517 beds added to IRF
capacity across 8 states and Puerto Rico
Total discharge growth
    Total discharge growth of 6.0%
    Treated approximately 7.5% of
patients recovering from a stroke
in the United States
Advanced technology
We expanded in-house hemodialysis service
to a total of 127 hospitals. Providing our
patients dialysis on site without interrupting
therapy or requiring travel improves patient
satisfaction and lowers our cost of treatment.
Quality
We operate 149 hospitals
that hold one or more of the
following Joint Commission
Disease-Speci   c Care
Certi   cations in rehabilitation:
stroke, hip fracture, cardiac,
pulmonary, brain injury,
amputee, Parkinson   s disease
and spinal cord injury.
Clinical innovation
In 2021, we initiated our fall
prevention model which
combines predictive modeling
with our core clinical practice
protocols. Since then we have
seen our fall rates per 1,000
patient days improve 32%.

We continued to provide
high-quality care by placing
our patients    rst.
Discharge to community
84.6%
82.0%
Higher is better
Discharge to SNF
6.1%
8.3%
Lower is better
Discharge to acute
8.6%
8.9%
Encompass
Health
Benchmark
Lower is better
Forward-looking statements
The information contained here includes forward-looking statements that re   ect Encompass Health   s
current outlook, views and plans with respect to future events, including the business outlook and growth
targets. These forward-looking statements are based on assumptions the Company believes, as of the
date hereof, are reasonable. Inevitably, there will be differences between such estimates and actual
events or results, and those differences may be material. There can be no assurance any estimates,
projections or forward-looking statements will be realized.
All such estimates, projections and forward-looking statements speak only as of the date hereof.
Encompass Health undertakes no duty to publicly update or revise the information contained herein.
You are cautioned not to place undue reliance on the estimates, projections and other forward-looking
statements here as they are based on current expectations and general assumptions and are subject to
various risks, uncertainties and other factors, including those set forth in the Form 10-K for the year ended
December 31, 2025, many of which are beyond Encompass Health   s control, that may cause actual
events or results to differ materially from the views, beliefs and estimates expressed herein.

4/7/2026 Letter Continued (Full PDF)

 

Nothing in StockholderLetter.com is intended to be investment advice, nor does it represent the opinion of, counsel from, or recommendations by BNK Invest Inc. or any of its affiliates, subsidiaries or partners. None of the information contained herein constitutes a recommendation that any particular security, portfolio, transaction, or investment strategy is suitable for any specific person. All viewers agree that under no circumstances will BNK Invest, Inc,. its subsidiaries, partners, officers, employees, affiliates, or agents be held liable for any loss or damage caused by your reliance on information obtained. By visiting, using or viewing this site, you agree to the following Full Disclaimer & Terms of Use and Privacy Policy.