Encompass Health said it released results for the third quarter and first nine months of 2026, ended Sept. 30, and scheduled an earnings call for Oct. 29. The material provided identifies the results release and accompanying investor presentation but contains no financial figures, so it does not show how revenue, earnings, cash flow or debt levels changed.
The announcement also explains how the company presents certain operating comparisons and adjusted financial measures, including metrics relevant to its debt covenants.
Key details
- Reporting period: The results cover the three and nine months ended Sept. 30, 2026. Encompass Health’s earnings call was scheduled for 10 a.m. Eastern time on Oct. 29.
- Same-store comparisons: The company compares hospitals that were open throughout both the current and prior periods. Those comparisons also include market consolidations and capacity additions—such as satellite and remote hospitals—in existing markets, rather than isolating their incremental contribution.
- Adjusted measures: The company uses adjusted earnings per share, Adjusted EBITDA, adjusted free cash flow and a leverage ratio alongside standard financial results. Adjusted earnings per share excludes items such as settlements, certain professional fees, stock-award mark-to-market adjustments, restructuring costs and some tax-related items. The company says these adjustments are intended to aid comparisons of ongoing performance, but the excluded items can recur and the measure is not directly comparable with similarly named metrics at other companies.
- Debt and covenant measures: Encompass Health defines its leverage ratio as consolidated debt divided by Adjusted EBITDA for the trailing four quarters. The credit agreement’s covenant calculation can differ: it permits cash to be deducted from debt and allows certain pro forma EBITDA adjustments.
- Potential consequences of a covenant breach: The company says failure to meet its interest-coverage or leverage covenants could allow lenders to demand immediate repayment and restrict activities such as taking on more debt or paying dividends. The announcement does not say that Encompass Health is in breach or expects to breach a covenant.
What this means
The announcement highlights the measures Encompass Health uses to describe operating performance and debt capacity, but the figures needed to evaluate the quarter are not included in the material provided. Without those results, it is not possible to assess the company’s reported performance or its current leverage against its covenant limits.