| Earnings per Common Share The following table sets forth the computation of basic and diluted earnings per common share (in millions, except per share amounts): | | | | | | | | | | | | | | | | | | | | | | | | | Three Months Ended June 30, | | Six Months Ended June 30, | | 2026 | | 2025 | | 2026 | | 2025 | | Basic: | | | | | | | | | Numerator: | | | | | | | | | Income from continuing operations | $ | 208.0 | | | $ | 185.8 | | | $ | 440.3 | | | $ | 382.8 | | | Less: Net income attributable to noncontrolling interests included in continuing operations | (53.5) | | | (42.8) | | | (107.2) | | | (87.8) | | | Less: Income allocated to participating securities | (0.4) | | | (0.4) | | | (0.9) | | | (0.8) | | | Income from continuing operations attributable to Encompass Health common shareholders | 154.1 | | | 142.6 | | | 332.2 | | | 294.2 | | | | | | | | | | | | | | | | | | | | | | | | | | | (Loss) income from discontinued operations attributable to Encompass Health common shareholders | (0.6) | | | (0.9) | | | 15.3 | | | (1.4) | | | Net income attributable to Encompass Health common shareholders | $ | 153.5 | | | $ | 141.7 | | | $ | 347.5 | | | $ | 292.8 | | | Denominator: | | | | | | | | Basic weighted average common shares outstanding | 98.8 | | | 100.6 | | | 99.0 | | | 100.6 | | Basic earnings per share attributable to Encompass Health common shareholders: | | | | | | | | Continuing operations | $ | 1.56 | | | $ | 1.42 | | | $ | 3.36 | | | $ | 2.92 | | Discontinued operations | (0.01) | | | (0.01) | | | 0.15 | | | (0.01) | | Net income | $ | 1.55 | | | $ | 1.41 | | | $ | 3.51 | | | $ | 2.91 | | | | | | | | | | | Diluted: | | | | | | | | | Numerator: | | | | | | | | | Income from continuing operations | $ | 208.0 | | | $ | 185.8 | | | $ | 440.3 | | | $ | 382.8 | | | Less: Net income attributable to noncontrolling interests included in continuing operations | (53.5) | | | (42.8) | | | (107.2) | | | (87.8) | | | | | | | | | | | | | | | | | | | Income from continuing operations attributable to Encompass Health common shareholders | 154.5 | | | 143.0 | | | 333.1 | | | 295.0 | | | | | | | | | | | | | | | | | | | (Loss) income from discontinued operations attributable to Encompass Health common shareholders | (0.6) | | | (0.9) | | | 15.3 | | | (1.4) | | | Net income attributable to Encompass Health common shareholders | $ | 153.9 | | | $ | 142.1 | | | $ | 348.4 | | | $ | 293.6 | | | Denominator: | | | | | | | | Diluted weighted average common shares outstanding | 100.0 | | | 102.3 | | | 100.3 | | | 102.2 | | Diluted earnings per share attributable to Encompass Health common shareholders: | | | | | | | | Continuing operations | $ | 1.55 | | | $ | 1.40 | | | $ | 3.32 | | | $ | 2.88 | | Discontinued operations | (0.01) | | | (0.01) | | | 0.15 | | | (0.01) | | Net income | $ | 1.54 | | | $ | 1.39 | | | $ | 3.47 | | | $ | 2.87 | |
The following table sets forth the reconciliation between basic weighted average common shares outstanding and diluted weighted average common shares outstanding (in millions): | | | | | | | | | | | | | | | | | | | | | | | | | Three Months Ended June 30, | | Six Months Ended June 30, | | 2026 | | 2025 | | 2026 | | 2025 | | Basic weighted average common shares outstanding | 98.8 | | | 100.6 | | | 99.0 | | | 100.6 | | Restricted stock awards, dilutive stock options, and restricted stock units | 1.2 | | | 1.7 | | | 1.3 | | | 1.6 | | | Diluted weighted average common shares outstanding | 100.0 | | | 102.3 | | | 100.3 | | | 102.2 | |
See Note 15, Earnings per Common Share, to the consolidated financial statements accompanying the 2025 Form 10‑K for additional information related to our common stock.
|