Encompass Health is accelerating its capacity expansion to meet growing demand for inpatient rehabilitation services, moving to launch projects before facilities reach full occupancy. In the first quarter of 2026, the company opened a new 49-bed hospital in South Carolina and added 44 beds to existing locations, with plans to open eight more hospitals and add about 175 beds by year-end. First-quarter revenues rose 9% and adjusted EBITDA increased 11.2%, leading management to raise 2026 adjusted EPS guidance to $5.89-$6.11 from $5.81-$6.10. The company has 11 additional hospitals in its development pipeline and will introduce a smaller hospital design in 2027 for crowded, fast-growing markets. Shares have lost 4.5% year to date, and the stock trades at a forward price-to-earnings ratio of 16.33 times, below the industry average of 18.08 times.
Encompass Health CorpEncompass Health is expanding capacity to capture rising demand for inpatient rehab services, with revenue and EBITDA growth and raised guidance.
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