Earnings per Common Share (Tables)

3 Months Ended

Mar. 31, 2026

Schedule of Computation of Basic and Diluted 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 March 31,
		2026		2025
Basic:
Numerator:
Income from continuing operations		$	232.3	$	197.0
Less: Net income attributable to noncontrolling interests included in continuing operations		(53.7)		(45.0)
Less: Income allocated to participating securities		(0.5)		(0.4)
Income from continuing operations attributable to Encompass Health common shareholders		178.1		151.6



Income (loss) from discontinued operations attributable to Encompass Health common shareholders		15.9		(0.5)
Net income attributable to Encompass Health common shareholders		$	194.0	$	151.1
Denominator:
Basic weighted average common shares outstanding		99.2		100.5
Basic earnings per share attributable to Encompass Health common shareholders:
Continuing operations		$	1.80	$	1.50
Discontinued operations		0.16		—
Net income		$	1.96	$	1.50

Diluted:
Numerator:
Income from continuing operations		$	232.3	$	197.0
Less: Net income attributable to noncontrolling interests included in continuing operations		(53.7)		(45.0)


Income from continuing operations attributable to Encompass Health common shareholders		178.6		152.0


Income (loss) from discontinued operations attributable to Encompass Health common shareholders		15.9		(0.5)
Net income attributable to Encompass Health common shareholders		$	194.5	$	151.5
Denominator:
Diluted weighted average common shares outstanding		100.6		102.1
Diluted earnings per share attributable to Encompass Health common shareholders:
Continuing operations		$	1.77	$	1.48
Discontinued operations		0.16		—
Net income		$	1.93	$	1.48

Schedule of Reconciliation of Weighted Average Number of Shares Outstanding

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 March 31,
		2026	2025
Basic weighted average common shares outstanding		99.2	100.5
Restricted stock awards, dilutive stock options, and restricted stock units		1.4	1.6
Diluted weighted average common shares outstanding		100.6	102.1

Encompass Health Corp 10-Q