Company: EHC
Filing Date: 2025-06-25
Form Type: 8-K
Source: 0000785161-25-000033
Chunk: 0

Company: Encompass Health Corp
Filing Date: 2025-06-25
Form: 8-K
Item: Item 7.01
Chunk 0
---
ITEM 7.01.

Regulation FD Disclosure.

On June 25, 2025, Encompass Health Corporation (the “ Company” or “ Encompass Health”) published an Investor Reference Book, a copy of which is attached to this Current Report on Form 8-K as Exhibit 99.1 and incorporated herein by reference (the “ Investor Reference Book”). The Investor Reference Book addresses, among other things, an overview of the Company and its industry, its business outlook, its growth strategy, and its operational initiatives. The Investor Reference Book is available at http://investor. encompasshealth. com by clicking on an available link.

The information contained herein is being furnished pursuant to Item 7.01 of Form 8-K, “ Regulation FD Disclosure.” This information shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “ Exchange Act”), or incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing. The furnishing of this information will not be deemed an admission as to the materiality of any information contained herein.

Note Regarding Presentation of Non-GAAP Financial Measures

The financial data contained in the Investor Reference Book include non-GAAP financial measures, including the Company’s, leverage ratio, Adjusted EBITDA, and adjusted free cash flow.

The leverage ratio referenced therein is defined as the ratio of consolidated total debt to Adjusted EBITDA for the trailing four quarters. The Company believes its leverage ratio and Adjusted EBITDA are measures of its ability to service its debt and its ability to make capital expenditures. Additionally, the leverage ratio is a standard measurement used by investors to gauge the creditworthiness of an institution. The Company’s credit agreement also includes a maximum leverage ratio financial covenant which allows the Company to deduct cash on hand from consolidated total debt. In calculating the leverage ratio under our credit agreement, we are permitted to use pro forma Adjusted EBITDA, the calculation of which includes historical income statement items and pro forma adjustments, subject to certain limitations, resulting from (1) dispositions and repayments or incurrence of debt and (2) investments, acquisitions, mergers, amalgamations, consolidations and other operational changes to the extent such items or effects are not yet reflected in our trailing four-quarter financial statements. The Company reconciles Adjusted EBITDA to net cash provided by operating