EHC

Encompass Health is the nation's largest owner-operator of inpatient rehabilitation hospitals (173 facilities across 39 states and Puerto Rico as of year-end 2025), and the financials show a steadily compounding, high-return business. Revenue grew 10.5% to $5.94B in FY2025, the fifth straight year of double-digit-ish gains (from $4.01B in FY2021), while net income rose 24.2% to $566M and diluted EPS climbed to $5.54. Net margin of 9.5%, return on equity of 23.2%, and $1.18B of operating cash flow point to durable, profitable growth driven by both volume and pricing per management's 2025 overview.

The balance sheet has materially strengthened: stockholders' equity rose 18.0% to $2.44B, retained earnings jumped 61.8% to $1.29B, and liabilities/equity sits at a manageable 1.56x. Management is returning capital while still investing heavily for growth — $158M of buybacks and $71.1M of dividends in FY2025, alongside $736M of capex funding a robust de novo pipeline (multiple new 40-60 bed hospitals opened in 2025 and a long list of 2026-2027 openings disclosed in the MD&A). Cash on hand is thin at $72.2M, but the strong operating cash generation comfortably funds this expansion.