Company: EHC
Filing Date: 2025-10-31
Form Type: 10-Q
Source: 0000785161-25-000115
Chunk: 76

Company: Encompass Health Corp
Filing Date: 2025-10-31
Form: 10-Q
Item: Part I, Item 1
Chunk 76
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 in 2028 and beyond. See Note 5, Long-term Debt, to the accompanying condensed consolidated financial statements, for additional information related to our debt. Also, see the “Contractual Obligations” section below for information related to our contractual obligations as of September 30, 2025.

See the “Results of Operations” section above for information related to our estimated cash tax savings in 2025 resulting from the OBBBA. For a discussion of risks and uncertainties facing us see Item 1A, Risk Factors, under Part II, Other Information, of this report and Item 1A, Risk Factors, of the 2024 Form 10‑K.

Sources and Uses of Cash 

The following table shows the cash flows provided by or used in operating, investing, and financing activities (in millions):

 Nine Months Ended September 30, 20252024Net cash provided by operating activities$829.6 $724.0 Net cash used in investing activities(525.2)(449.6)Net cash used in financing activities(333.8)(179.7)(Decrease) increase in cash, cash equivalents, and restricted cash$(29.4)$94.7 

Operating activities. The increase in Net cash provided by operating activities for the nine months ended September 30, 2025 compared to the same period of 2024 primarily resulted from an increase in Net income which was driven by growth in Net operating revenues.

Investing activities. The increase in Net cash used in investing activities during the nine months ended September 30, 2025 compared to the same period of 2024 primarily resulted from increased Purchases of property, equipment, and intangible assets.

Financing activities. The increase in Net cash used in financing activities during the nine months ended September 30, 2025 compared to the same period of 2024 primarily resulted from lower Contributions from noncontrolling interests of 

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consolidated affiliates and higher Repurchases of common stock, including fees and expenses, partially offset by lower net debt payments. Contributions from noncontrolling interests of consolidated affiliates during the nine months ended September 30, 2024 included approximately $90 million from Piedmont Healthcare. See Note 1, Basis of Presentation, “Noncontrolling Interests in Consolidated Affiliates,” to the accompanying condensed consolidated financial statements, for additional information on this transaction. For additional information related to our stock repurchases, see “Authorizations for Returning Capital to Stakeholders”