EHC Encompass Health (EHC) Q1 FY26 earnings call
Encompass Health reported a strong Q1 FY26, driven by robust revenue and adjusted EBITDA growth, leading to raised full-year guidance. The company demonstrated significant improvements in clinical staff retention and reduced premium labor costs. While facing challenges from unit closures, occupancy constraints, and evolving Medicare Advantage dynamics, management is actively addressing capacity needs and regulatory changes, maintaining a positive outlook on the underserved demand for inpatient rehabilitation services.
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EHC operating KPIs by quarter
| KPI | This call Mar 2026 Q1 FY26 | Jun 2026 Q2 FY26 | Change vs prior quarter |
|---|---|---|---|
| Discharge acute rate | 8.6%Our discharge acute rate improved 30 basis points to 8.6%, and our discharge to SNF rate improved 20 basis points to 6.2%.Source: earnings call transcript | 8.4%Discharge to acute rate was 8.4% and discharge to skilled nursing facilities was 6.1%.Source: earnings call transcript | -0.2 pt |
| Discharge to SNF rate | 6.2%Our discharge acute rate improved 30 basis points to 8.6%, and our discharge to SNF rate improved 20 basis points to 6.2%.Source: earnings call transcript | 6.1%Discharge to acute rate was 8.4% and discharge to skilled nursing facilities was 6.1%.Source: earnings call transcript | -0.1 pt |
| Annualized RN turnover | 17.8%We believe our success in these programs contribute to the continuing improvement in our clinical staff turnover trends Q1 2016 annualized RN turnover was 17.8%, down from fiscal year '25 to 20.2% and annualized therapist turnover was 6.4%, down from last year's 7.8%.Source: earnings call transcript | ~19%So on an annualized basis through Q2, our nursing turnover sits around 19%.Source: earnings call transcript | — |
| Annualized therapist turnover | 6.4%We believe our success in these programs contribute to the continuing improvement in our clinical staff turnover trends Q1 2016 annualized RN turnover was 17.8%, down from fiscal year '25 to 20.2% and annualized therapist turnover was 6.4%, down from last year's 7.8%.Source: earnings call transcript | 7%+On the therapy perspective, we're just above 7%.Source: earnings call transcript | — |
| Contract labor FTEs as a percent of total FTEs | 1.2%Contract labor FTEs as a percent of total FTEs was 1.2% in Q1, down 10 basis points from Q1 '25.Source: earnings call transcript | 1.1%Contract labor FTEs as a percent of total FTEs was 1.1% and an improvement of 20 basis points from Q2 '25.Source: earnings call transcript | -0.1 pt |
| Average occupancy rate | 78.7%Our Q1 average occupancy of 78.7% was essentially flat with our record high levels in Q1 of '25 and that was up 200 basis points from Q1 of '24 and up over 500 basis points from Q1 of '23.Source: earnings call transcript | 77.4%To put a finer point on that, our Q2 occupancy of 77.4% was up 290 basis points over Q2 '25.Source: earnings call transcript | -1.3 pt |
Operating figures the company stated on at least two of the calls shown, checked against each call's transcript. Click a figure to read the sentence. A dash means it was not stated that quarter.
Inve summary of the company's earnings call; see how call summaries are prepared. Not investment advice.