Encompass Health Corporation reported strong first-quarter 2026 results and raised its full-year outlook. Net operating revenue grew 9.0% to $1,586.6 million, driven by 4.3% higher discharges and a 3.7% increase in net patient revenue per discharge to $22,633.
Adjusted EBITDA rose 11.2% to $348.8 million, while diluted earnings per share from continuing operations increased to $1.77, with adjusted earnings per share up 16.8% to $1.60. Adjusted free cash flow was $193.8 million, down from $222.4 million a year earlier, reflecting higher maintenance capital spending and distributions to noncontrolling interests.
The company continued to expand capacity, opening a new 49-bed hospital in Irmo, South Carolina and adding 44 beds at existing facilities. It amended and restated its credit agreement, extending maturity to March 2031, and reported net leverage of 1.9x. Encompass Health repurchased 707,965 shares for $71.6 million and paid a quarterly dividend of $0.19 per share.
For full-year 2026, management modestly increased guidance, now expecting net operating revenue of $6,375 million to $6,470 million, Adjusted EBITDA of $1,350 million to $1,380 million, and adjusted earnings per share from continuing operations of $5.89 to $6.11.
Encompass Health Corp reports beneficial ownership of 5,233,622 shares of Common Stock, representing 5.26% of the class as of 03/31/2026. The filing attributes sole voting power for 767,385 shares and sole dispositive power over 5,233,622 shares to Vanguard Capital Management and certain affiliates under SEC Release No. 34-39538.
Encompass Health Corp passive ownership disclosure: Vanguard Portfolio Management reported beneficial ownership of 4,971,601 shares, representing 5% of common stock.
The filing states Vanguard has sole voting power for 12,056 shares and sole dispositive power for 4,971,601 shares. The report is signed by Ashley Grim on 04/29/2026.
CARMICHAEL GREG D reported acquisition or exercise transactions in this Form 4 filing.
Encompass Health Corp director Greg D. Carmichael received additional stock-based compensation through a routine dividend-related award. On April 15, 2026, he was granted 27 restricted stock units (RSUs) of Encompass Health Common Stock at no cash cost, increasing his direct holdings to 18,686 shares.
The footnote explains that, under outstanding RSU award agreements, extra RSUs are credited to each non-employee director when common stock dividends are paid. The number of RSUs is based on the existing RSU balance, the per share dividend of $0.19, and the $105.24 closing price on the dividend payment date.
Encompass Health Corp director Edward M. Christie III reported acquiring additional common stock through compensation-related programs. On April 16, he received 261 shares at a weighted average price of $106.17 per share, tied to restricted stock units that accrue additional units when common stock dividends are paid.
The RSU credit was based on a $0.19 per share dividend paid on April 15 and a closing price of $105.24 on that date. He also acquired 9 shares on April 15 through the Directors Deferred Stock Investment Plan, where deferred director fees and associated dividends are used to purchase Encompass Health common stock in the market. Following these awards, he directly holds 7,452 shares of Encompass Health common stock.
Hayes Cain A reported acquisition or exercise transactions in this Form 4 filing.
Encompass Health Corp director Hayes Cain A received an automatic award of 1 restricted stock unit linked to a common stock dividend. This award arose under outstanding RSU agreements when Encompass Health paid a $0.19 per share dividend and the stock closed at $105.24 on April 15, 2026. Following this grant, Cain directly holds 458 shares or units of Encompass Health common stock.
Encompass Health Corp director Joan E. Herman received an automatic share-based award tied to a dividend payment. On April 15, 2026, she acquired 85 Encompass Health common stock equivalent restricted stock units at no cash cost, credited under existing RSU agreements in connection with a $0.19 per share dividend and a $105.24 closing price. Following this grant, she directly holds 47,924 shares of Encompass Health common stock.
Encompass Health Corp director Leslye G. Katz received an equity award tied to a dividend reinvestment feature. On April 15, 2026, she acquired 85 restricted stock units (RSUs) for Encompass Health common stock at no cost, credited in connection with a $0.19 per share dividend and a $105.24 closing price. Following this routine compensation-related award, she directly holds 47,924 shares of Encompass Health common stock.
Encompass Health Corp director Kevin J. O’Connor reported a small compensation-related equity award. On April 15, 2026, he acquired 17 Encompass Health common stock restricted stock units credited in connection with a common stock dividend. These units were valued using the $105.24 closing price on the dividend payment date. Following this award, his directly held Encompass Health common stock position stands at 9,929 shares.
Encompass Health Corp director Christopher R. Reidy increased his direct holdings through routine equity compensation events. On April 16, 2026, he acquired 334 shares of Encompass Health Common Stock at a weighted average of $106.48 per share as a grant or award. On April 15, 2026, he also acquired 19 shares at $0.00 per share through a directors’ deferred stock investment plan and dividend reinvestment tied to a $0.19 per share dividend and a $105.24 closing price. Following these transactions, he directly holds 15,803 shares of Encompass Health Common Stock.