Property and Equipment

12 Months Ended

Dec. 31, 2025

Property, Plant and Equipment [Abstract]

Property and Equipment:

Property and equipment consists of the following (in millions):


	As of December 31,
	2025		2024
Land	$	339.7	$	302.6
Buildings	4,325.7		3,859.3
Leasehold improvements	388.3		372.8
Vehicles	6.1		5.6
Furniture, fixtures, and equipment	897.0		808.8
	5,956.8		5,349.1
Less: Accumulated depreciation and amortization	(2,372.8)		(2,111.9)
	3,584.0		3,237.2
Construction in progress	517.6		405.9
Property and equipment, net	$	4,101.6	$	3,643.1

As of December 31, 2025, approximately 68% of our consolidated Property and equipment, net held by Encompass Health Corporation and its guarantor subsidiaries was pledged to the lenders under our credit agreement. See Note 8, Long-term Debt, for additional information on our credit agreement.

Depreciation expense was $273.9 million, $245.1 million, and $215.7 million for the years ended December 31, 2025, December 31, 2024 and December 31, 2023, respectively. Interest capitalized was $17.6 million, $15.2 million, and $13.5 million for the years ended December 31, 2025, December 31, 2024 and December 31, 2023, respectively.

Encompass Health Corp 10-K