Encompass Health Corporation (EHC)

In the past six months, Encompass Health Corp. reported its third-quarter 2025 results and increased its full-year guidance. The company reported strong fourth-quarter 2025 results, with net operating revenue up 9.9% year-over-year and adjusted EPS of $1.46, and also issued its 2026 guidance. The company consistently declared quarterly cash dividends of $0.19 per share. Encompass Health also announced plans for new hospital constructions and openings. In February 2026, Encompass Health was recognized on Fortune's 2026 World's Most Admired Companies list and Forbes' 2026 America's Best Companies list. The company also participated in the Barclays Global Healthcare Conference in March 2026. However, there was news in March 2026 of a law firm investigating claims on behalf of investors of Encompass Health Corporation. Insider selling activity was also reported in February and March 2026 by executives such as Mark Tarr (CEO) and Edmund Fay.

The demand for medical rehabilitation services, which Encompass Health provides, can exhibit seasonality, particularly within the broader healthcare sector. Generally, the healthcare sector often experiences an increase in patient demand during the winter season. Seasonal shifts can also influence individuals' psychological landscapes, potentially impacting recovery processes in addiction recovery centers, which might have parallels in other rehabilitation settings. The medical rehabilitation services market is also experiencing overall growth, driven by factors such as an aging population and increasing prevalence of chronic diseases, which would contribute to a consistent underlying demand.

Encompass Health Corp. is a leading provider of post-acute healthcare services in the United States, primarily operating as the nation's largest owner and operator of inpatient rehabilitation hospitals. The company specializes in Specialty Hospitals and also offers occupational therapy services. Encompass Health provides specialized rehabilitative treatment on an inpatient basis for patients recovering from a wide array of major injuries or illnesses, utilizing advanced technology and innovative treatments. Major conditions treated include strokes and other neurological disorders, cardiac and pulmonary conditions, brain and spinal cord injuries, complex orthopedic conditions, and amputations. The company's inpatient rehabilitation hospitals offer comprehensive patient care services, including medical, nursing, therapy, and ancillary services. They also provide care for patients recovering from the debilitating effects of the COVID-19 virus.

Encompass Health operates a national network of inpatient rehabilitation hospitals across 39 states and Puerto Rico. As of early 2026, this network includes 173 hospitals, with a notable concentration in Florida and Texas. Approximately one in three patients in the U.S. receiving inpatient rehabilitative care receive it through an Encompass Health rehabilitation hospital. The company is actively expanding its footprint by opening new hospitals and adding beds to existing facilities, with plans to open 6 to 10 new hospitals and add 80 to 120 beds annually through 2027. Recent openings and plans include hospitals in Connecticut, Florida, South Carolina, Delaware, and Mississippi.

Encompass Health has maintained a strong brand reputation over the past year, earning significant accolades. In February 2026, the company was named to the Fortune 2026 World's Most Admired Companies list for the sixth consecutive year and also appeared on Forbes' 2026 America's Best Companies list. Furthermore, in September 2025, Encompass Health was named "America's Most Awarded Leader in Inpatient Rehabilitation" by Newsweek and Statista for the sixth consecutive year. A potential negative event impacting reputation was the announcement in March 2026 that a law firm was investigating claims on behalf of investors of Encompass Health Corporation.

Encompass Health Corp. has a diverse ownership structure, with institutional investors holding a significant majority. Approximately 84.56% to 89.3% of the company's stock is held by institutional owners. Major institutional shareholders include BlackRock, Inc., Vanguard Group Inc, Invesco Ltd. Individual insiders own approximately 1.02% to 1.19% of the company's stock. Joel C. Gordon is noted as the largest individual shareholder, owning 1.48 million shares, representing 1.48% of the company. Recent insider selling activity has been observed from executives like Mark Tarr (CEO) and Edmund Fay. The general public holds around 9.46% to 23.62% of the shares.