Encompass Health Corporation filed a Form 8-K on October 28, 2026, reporting financial results for the three and nine months ended September 30, 2026, via a press release attached as Exhibit 99.1.

Key Highlights

  • Reporting period: Results cover the three and nine months ended September 30, 2026.
  • Earnings call scheduled: Supplemental information will be discussed during a call at 10:00 a.m. Eastern Time on Thursday, October 29, 2026.
  • Non-GAAP measures disclosed: The filing references adjusted earnings per share, leverage ratio, Adjusted EBITDA, and adjusted free cash flow as non-GAAP financial measures included in the press release and supplemental materials.
  • Leverage ratio defined: According to the filing, the leverage ratio is the ratio of consolidated total debt to Adjusted EBITDA for the trailing four quarters.
  • Credit agreement covenant noted: The filing states that noncompliance with financial covenants, including the interest coverage ratio and leverage ratio, "could result in the Company's lenders requiring the Company to immediately repay all amounts borrowed."
  • Same-store methodology disclosed: The company uses same-store comparisons calculated based on hospitals open throughout both the full current and prior periods presented.

Encompass Health's Third-Quarter 2026 Disclosure and Non-GAAP Framework

Encompass Health Corporation (NYSE:EHC), headquartered at 9001 Liberty Parkway, Birmingham, Alabama, filed a current report on October 28, 2026, covering results for the three and nine months ended September 30, 2026. The financial results were released via a press release attached as Exhibit 99.1, while supplemental information intended for discussion on the October 29, 2026 earnings call was attached as Exhibit 99.2.

According to the filing, the company uses "same-store" comparisons to explain changes in certain performance metrics. The filing notes these comparisons are "calculated based on hospitals open throughout both the full current and prior periods presented" and include the financial results of market consolidation transactions and capacity expansions in existing markets.

The filing provides extensive context for its non-GAAP measures. Adjusted earnings per share, as described by the company, excludes items such as government and class action settlements, professional fees, mark-to-market adjustments for stock appreciation rights, loss on early extinguishment of debt, and certain restructuring-related items. The company stated that "adjusted earnings per share should not be considered as a measure of financial performance under generally accepted accounting principles." With respect to Adjusted EBITDA, the filing describes it as "critical to the Company's assessment of its liquidity" because it is a key component of covenants in the company's credit agreement. The credit agreement's definition of Adjusted EBITDA, referred to therein as "Adjusted Consolidated EBITDA," permits add-backs including unusual or nonrecurring items, share-based compensation, and restructuring charges, subject to specified limitations.

What Was Disclosed

Encompass Health filed an 8-K on October 28, 2026, attaching a press release with Q3 and nine-month 2026 financial results and supplemental materials for its October 29 earnings call, along with detailed descriptions of its non-GAAP financial measures and credit agreement covenants.