EHC Encompass Health margins

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Relative Growth: Rel. Growth: 83
Relative Strength: Rel. Strength: 73
Relative Valuation: Rel. Valuation: 69
Relative Profitability: Rel. Profitability: 69
Gross margin
27.5%
Operating margin
18%
EBITDA margin
21%
Net margin
10%

Current Encompass Health reports a gross margin of 27.5%, an operating margin of 18%, an EBITDA margin of 21%, and a net margin of 10%. Gross margin headed the improvement across the available margins, gaining by 1 percentage points.

EHC margin history

Gross, operating, EBITDA and net margin trends

Over the last 3 years, Encompass Health's margins averaged 26.17% gross, 16.62% operating, 19.64% EBITDA, and 8.63% net. All four current margins are above their three-year averages.

EHC margin expansion

Year-over-year margin changes in percentage points

All available margins expanded year over year, led by gross and EBITDA margins with an increase of 1 percentage point.

Gross margin expansion
1pp
Operating margin expansion
0.9pp
EBITDA margin expansion
1pp
Net margin expansion
0.8pp

EHC Gross margin

Looking back over the last 3 years, Encompass Health recorded an average gross margin of 26.17%. Encompass Health's current gross margin is 27.5% and is 1.3 percentage points above its three-year average. The highest gross margin for Encompass Health was 27.5% in Jun 2026, while the lowest was 25.1% in Dec 2023.

EHC Operating margin

Looking back over the last 3 years, Encompass Health recorded an average operating margin of 16.62%. Encompass Health's current operating margin is 18% and is 1.4 percentage points above its three-year average. The highest operating margin for Encompass Health was 18% in Jun 2026, while the lowest was 15.2% in Dec 2023.

EHC EBITDA margin

Encompass Health's EBITDA margin averaged 19.64% across the past 3 years. Compared with its three-year average, Encompass Health's current EBITDA margin is 21% and is 1.4 percentage points above its three-year average. Over the last 3 years, Encompass Health's EBITDA margin peaked at 21% in Jun 2026 and reached a low of 18.2% in Sep 2024.

EHC Net margin

In the last 3 years, Encompass Health had an average net margin of 8.63%. Against its three-year average, Encompass Health's net margin is currently 10%, 1.4 percentage points above its three-year average. Looking back over the last 3 years, Encompass Health's net margin reached 10% at its highest point in Jun 2026 and 7.1% at its lowest in Sep 2024.

EHC margin group comparison

Margins compared with peer-group, industry and sector averages

With a gross margin of 27.5%, EHC ranks lower than the Healthcare sector and the industry average. In comparison with the Healthcare sector average of 68.3%, Encompass Health's gross margin is 60% lower.

EHC margin peer comparison

Compare margins with selected peers

Frequently asked questions

What is Encompass Health's gross margin?

For the period ending Jun 30, 2026, EHC recorded a gross margin of 27.5%.

What is Encompass Health's operating margin?

As of Jun 30, 2026, EHC has an operating margin of 18%.

What is Encompass Health's EBITDA margin?

For the period ending Jun 30, 2026, EHC recorded an EBITDA margin of 21%.

What is Encompass Health's net margin?

The current net margin for EHC is 10% as of Jun 30, 2026.

What are the average margins of EHC?

The three-year average margins for EHC were 26.2% gross, 16.6% operating, 19.6% EBITDA, and 8.6% net.

What are the highest historical margins of EHC?

Encompass Health's highest recorded margins during the past 5 years were 27.5% gross in Jun 2026, 18% operating in Jun 2026, 25% EBITDA in Dec 2021, and 12.9% net in Dec 2021.

What are the lowest historical margins of EHC?

In the last 5 years, the lowest margins reported by EHC were 23.4% gross in Sep 2022, 14.1% operating in Sep 2022, 18.2% EBITDA in Sep 2024, and 7.1% net in Sep 2024.