Concentra Group Holdings Mother or father (NYSE:CON) reported double-digit income and adjusted EBITDA progress for the primary quarter of 2026, citing stronger employees’ compensation go to volumes, acquisitions and improved value management as key drivers of the outcomes.
Chief Government Officer Keith Newton mentioned the corporate “continued our momentum from 2025” and described the quarter as “a robust begin to the yr.” Complete firm income rose to $569.6 million from $500.8 million within the prior-year quarter, a rise of 13.7%. Excluding contributions from the Nova and Pivot acquisitions the place relevant, income was $520.3 million, up 6.3% yr over yr.
Complete affected person visits elevated 6.7% to a median of greater than 54,000 visits per day in the course of the quarter. Employees’ compensation visits per day elevated 9.6%, whereas employer companies go to quantity rose 4.8%. Excluding the affect of Nova, complete visits per day rose 2.9%, with employees’ compensation visits up 6.2% and employer companies visits up 0.7%.
Employees’ Compensation Leads Progress
Newton mentioned the employees’ compensation efficiency mirrored a number of components, together with improved affected person satisfaction, new applied sciences to help account administration and retention, and enhanced prospecting for brand new employer clients. He mentioned service metrics reminiscent of common affected person time in facilities, Google rankings and affected person Web Promoter Scores had been “all at or near historic finest.”
Climate additionally performed a job within the quarter’s outcomes. Newton mentioned the primary quarter of 2025 was the best comparability of 2026 as a result of final yr’s winter was comparatively gentle and dry, whereas this yr included extra ice and snow occasions that contributed to slips, falls and accidents. Through the question-and-answer session, he mentioned climate was a “internet constructive” within the quarter regardless of some middle closures.
Income per go to elevated 3.1% yr over yr within the first quarter. Employees’ compensation income per go to elevated 2.0%, whereas employer companies income per go to rose 2.7%. Newton mentioned a California employees’ compensation charge improve took impact March 1 and that the corporate anticipates upside to employees’ compensation charge progress over the rest of the yr.
President and Chief Monetary Officer Matthew DiCanio mentioned Occupational Well being phase income was $519.9 million, up 9.9% from the prior-year quarter. Employees’ compensation income elevated 11.8% to $337.7 million, whereas employer companies income rose 7.6% to $172.4 million.
DiCanio emphasised that employees’ compensation generates considerably increased income per go to and contribution margin than employer companies and accounts for about two-thirds of complete middle income. He mentioned that within the present “low rent, low fireplace macroeconomic setting,” employer companies can present muted tendencies whereas the corporate performs properly general.
Adjusted EBITDA Rises, Margins Enhance
Adjusted EBITDA elevated 17.6% to $120.7 million, in contrast with $102.7 million within the first quarter of 2025. Adjusted EBITDA margin rose to 21.2% from 20.5% a yr earlier. Newton mentioned trailing 12-month adjusted EBITDA reached $450 million, up $85 million, or 23%, from the extent on the time of the corporate’s July 2024 preliminary public providing.
Adjusted internet revenue attributable to the corporate was $51.5 million, and adjusted earnings per share had been $0.40, in contrast with $42.2 million and $0.33, respectively, within the prior-year quarter.
Value of companies was $399.1 million, or 70.1% of income, enhancing from 71.3% of income within the prior-year interval. DiCanio mentioned the corporate continued to appreciate staffing efficiencies in its facilities. Common and administrative bills totaled $55.3 million, or 9.7% of income. Excluding objects added again for adjusted EBITDA, G&A was $50.2 million, or 8.8% of income, up from 8.2% a yr earlier, pushed primarily by deliberate additions to workers and IT infrastructure associated to the corporate’s separation from Choose.
Acquisitions, Onsite Clinics and Enlargement
Newton mentioned Concentra has accomplished integration efforts for its March 2025 acquisition of Nova and has captured all anticipated synergies. He mentioned the corporate is forward of expectations and monitoring towards its authentic goal of reaching a transaction a number of under 7.5 instances adjusted EBITDA. He additionally mentioned the June 2025 acquisition of Pivot has been built-in, is performing strongly and is forward of the corporate’s authentic estimate of a transaction a number of under 9 instances adjusted EBITDA.
The corporate added three facilities in California by acquisition in the course of the quarter and opened one de novo middle outdoors Atlanta. Newton mentioned Concentra continues to count on eight to 10 de novo openings this yr, with deliberate areas in Arizona, Idaho, Missouri, Illinois, Virginia, South Carolina and Florida. He additionally mentioned a number of small bolt-on acquisition alternatives are lively.
Onsite Well being Clinics income rose 125% to $37.2 million, largely because of the Pivot Onsite Improvements acquisition within the second quarter of 2025. Excluding Pivot, onsite clinic income grew 20.9% yr over yr. DiCanio mentioned the phase is nearing a $150 million income run charge, up from $64 million in 2024, and cited alternatives in occupational medication and superior main care.
Different companies, together with telemedicine, pharmacy operations and different occupational health-related companies, generated $12.5 million in income, up 10.4% yr over yr.
Money Movement, Capital Returns and Stability Sheet
Concentra generated $21 million in working money circulate within the first quarter, in contrast with $11.7 million within the prior-year quarter. Investing actions used $14.8 million, reflecting the California middle acquisitions, de novo investments, relocations, renovations, upkeep and IT investments.
Free money circulate, outlined as money circulate from operations much less investing money circulate excluding enterprise combos, was $9.9 million, in contrast with detrimental $4 million within the prior-year quarter. Financing actions resulted in internet money outflows of $24.4 million, together with the repurchase of roughly 661,000 shares for $15 million and $8 million in dividends.
At quarter-end, Concentra had $1.58 billion in complete debt and $61.7 million in money. Its internet leverage ratio below its credit score settlement was 3.4 instances, down barely from year-end. DiCanio mentioned the corporate expects the leverage ratio to say no extra rapidly over the rest of the yr.
The board declared a money dividend of $0.0625 per share on Could 5, payable on or about June 9 to stockholders of file as of Could 19.
Steerage Raised After Robust Begin
Concentra raised its 2026 outlook following the first-quarter outcomes. The corporate now expects:
- Income of $2.275 billion to $2.375 billion, up $25 million at each ends of the prior vary.
- Adjusted EBITDA of $460 million to $480 million, up $10 million at each ends.
- Free money circulate of $215 million to $235 million, with the low finish raised by $15 million and the excessive finish raised by $10 million.
- Capital expenditures of $70 million to $80 million, unchanged.
DiCanio mentioned the corporate expects to finish the yr “comfortably under 3x” internet leverage, given the upper adjusted EBITDA and free money circulate steering.
Through the name, administration additionally mentioned the pending retirement of Chief Medical Officer Dr. John Anderson on the finish of the yr. Newton credited Anderson, identified inside the firm as “Dr. A,” with serving to form Concentra’s scientific mannequin, coaching packages and patient-first method. The corporate expects to conduct a seek for a successor and enter right into a consulting settlement with Anderson to help the transition.
About Concentra Group Holdings Mother or father (NYSE:CON)
Concentra Group Holdings Mother or father (NYSE:CON) is a Canada-based monetary companies holding firm that makes a speciality of serving Canadian credit score unions and their members. By way of its working subsidiaries, the group gives wholesale funding, lending options and funding administration companies tailor-made to the distinctive wants of cooperative monetary establishments. Concentra’s broad suite of choices contains belief and custody companies, mortgage funding merchandise and tools financing, all designed to help credit-union progress and stability.
Along with wholesale funding and lending, Concentra Group Holdings Mother or father distributes life and basic insurance coverage merchandise by affiliated insurance coverage brokers and credit-union channels.
This prompt information alert was generated by narrative science know-how and monetary knowledge from MarketBeat with the intention to present readers with the quickest reporting and unbiased protection. Please ship any questions or feedback about this story to contact@marketbeat.com.
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