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    CON
    Earnings call· Mar 2026(Q1 FY26)

    Concentra Group Holdings Parent Q1 FY26 earnings call CON

    May 8, 2026 Source

    Executive summary

    Concentra Q1 FY26 — Strong Start Driven by Workers' Comp and Onsite Health Growth

    Concentra delivered a strong first quarter, exceeding expectations primarily due to robust workers' compensation visit growth and effective cost management. The company also saw significant expansion in its Onsite Health Clinics segment, driven by both acquisitions and strong organic performance. Management raised full-year guidance across key financial metrics, signaling confidence in continued momentum and successful integration of recent acquisitions, while navigating a muted employer services market.

    Highlights

    5

    • Total company revenue grew 13.7% year-over-year to $569.6 million.

    • Adjusted EBITDA increased 17.6% to $120.7 million, with margin expanding 69 basis points to 21.2%.

    • Workers' compensation visits per day increased 9.6%, driving overall visit volume.

    • Onsite Health Clinics revenue grew 125% year-over-year to $37.2 million, with core organic growth of 20.9% excluding acquisitions.

    • Full-year 2026 guidance raised for revenue ($2.275B-$2.375B), adjusted EBITDA ($460M-$480M), and free cash flow ($215M-$235M).

    Concerns

    2

    • Employer Services visit volume increased only 4.8% (0.7% excluding Nova), reflecting a "no higher, no fire" macroeconomic environment.

    • General and administrative expenses increased to 9.7% of revenue from 9.3% in the prior year, driven by planned team additions and IT infrastructure for separation.

    Guidance & targets

    6
    CategoryTargetConfidence
    Full-year 2026 Revenue
    $2.275 billion to $2.375 billion
    high materiality
    High
    Full-year 2026 Adjusted EBITDA
    $460 million to $480 million
    high materiality
    High
    Full-year 2026 Free Cash Flow
    $215 million to $235 million
    high materiality
    High
    Full-year 2026 Capital Expenditure
    $70 million to $80 million
    medium materiality
    High
    End-of-year 2026 Net Leverage Ratio
    comfortably below 3x
    high materiality
    High
    De novo centers opened
    8 to 10 centers
    medium materiality
    High

    Segment performance

    8
    SegmentRevenueYoYQoQMargin
    Occupational Health operating segment (Total)
    Includes contributions from Nova and Pivot acquisitions.
    Total visits per day: 6.7% increaseRevenue per visit: 3.1% increaseRevenue per visit (Q1 2025): $147Revenue per visit (Q1 2026): $151
    		$519.9 million9.9%——
    Occupational Health operating segment (Total, ex-Nova)
    Excludes the impact of the Nova acquisition to isolate core business performance.
    Total visits per day: 2.9% increaseRevenue per visit: 2.7% increaseRevenue per visit (Q1 2025): $147Revenue per visit (Q1 2026): $151
    		$487.8 million5.7%——
    Workers' Compensation (within Occupational Health)
    Primary engine of the business, accounting for approximately two-thirds of total center revenue. California workers' compensation rate increase took effect March 1.
    Visits per day: 9.6% increaseRevenue per visit: 2.0% increaseRevenue per visit (Q1 2025): $209Revenue per visit (Q1 2026): $213
    		$337.7 million11.8%——
    Workers' Compensation (within Occupational Health, ex-Nova)
    Excludes the impact of the Nova acquisition. The stated revenue figure of $37.8 million appears to be a transcription error, as it is inconsistent with other reported segment figures. Based on other data, it should likely be closer to $307.1 million ($487.8M total ex-Nova - $160.7M Employer Services ex-Nova).
    Visits per day: 6.2% increaseRevenue per visit: 1.3% increase
    		$37.8 million7.5%——
    Employer Services (within Occupational Health)
    Often an initial point of entry with employer customers, but typically completed at much lower contribution margins. Muted trends in a low higher, no fire macroeconomic environment.
    Visits per day: 4.8% increaseRevenue per visit: 2.7% increaseRevenue per visit (Q1 2025): $94Revenue per visit (Q1 2026): $97
    		$172.4 million7.6%——
    Employer Services (within Occupational Health, ex-Nova)
    Excludes the impact of the Nova acquisition.
    Visits per day: 0.7% increaseRevenue per visit: 2.4% increase
    		$160.7 million3.2%——
    Onsite Health Clinics operating segment
    Strong quarter largely driven by the acquisition of Pivot on-site innovations in Q2 2025. Robust pipeline of opportunities across occupational medicine and advanced primary care. Significant white space in the market.
    Organic growth (ex-Pivot): 20.9% YoYNearing run rate: $150 million (up from $64 million in 2024)Serviceable addressable market: $15 billion to $20 billion
    		$37.2 million125%——
    Other businesses
    Includes telemedicine, pharmacy operations, and other occupational health related services.
    		$12.5 million10.4%——

    Operational metrics

    19
    Total company revenue (excluding acquisitions)
    $520.3 million6.3% increase
    Q1 FY26

    Excluding contributions from Nova and Pivot acquisitions in both current and prior year.

    Total patient visits per day
    >54,0006.7% increase
    Q1 FY26

    Total patient visits increased to an average of more than 54,000 visits per day.

    Revenue per visit growth
    3.1%YoY
    Q1 FY26

    Driven by increases in both workers' compensation and Employer Services revenue per visit.

    Adjusted EBITDA (TTM)
    $450 millionup $85 million or 23%
    TTM Q1 FY26

    Up from trailing 12-month adjusted EBITDA at the time of IPO in July 2024.

    Nova acquisition transaction multiple
    below 7.5x
    Target

    Tracking well towards the original objective.

    Pivot acquisition transaction multiple
    below 9x
    Target

    Ahead of original estimate.

    Cost of services as % of revenue
    70.1%improvement from 71.3%
    Q1 FY26

    Improvement driven by incremental improvements in staffing efficiencies within the centers.

    General and administrative expenses as % of revenue
    9.7%compared to 9.3%
    Q1 FY26

    Increase predominantly driven by planned additions to team and IT infrastructure for separation from Select.

    Adjusted general and administrative expenses as % of revenue
    8.8%compared to 8.2%
    Q1 FY26

    Excluding equity comp expense, one-time select separation costs, and M&A transaction costs.

    Investing activities cash use
    $14.8 million
    Q1 FY26

    Driven by acquisition of net centers in California, investments in de novo centers, relocations, renovations, maintenance, and IT.

    Financing activities net cash outflows
    $24.4 million
    Q1 FY26

    Resulted from share repurchases and dividend payments.

    Shares repurchased
    661,000 shares
    Q1 FY26

    Part of the repurchase program authorized by the Board of Directors.

    Dividend paid
    $8 million
    Q1 FY26

    Cash dividend payment.

    Remaining share repurchase authorization
    $65 million
    End of Q1 FY26

    Remaining under the repurchase program authorized by the Board of Directors.

    Total debt balance
    $1.58 billion
    End of Q1 FY26

    Total debt balance at the end of the first quarter.

    Cash balance
    $61.7 million
    End of Q1 FY26

    Cash balance at the end of the first quarter.

    Dividend per share
    $0.0625
    Q1 FY26

    Cash dividend declared by Concentra's Board of Directors.

    Separation from Select FTEs hired
    >95%
    Q1 FY26

    More than 95% of the total expected new FTEs have been hired for the separation from Select.

    Onsite Health Clinics serviceable addressable market
    $15 billion to $20 billion
    Long-term

    Estimated serviceable addressable market with only a small portion currently penetrated.

    Industry KPIs

    2
    MetricValueDetails
    Utilization trends6.7%%
    Adjusted EPS EBITDA leverage guidance$120.7 millionUSD

    Deals & partnerships

    3
    NovaAcquisition of occupational health centers

    Acquisition completed in March 2025. Integration efforts are complete and all expected synergies have been captured, ahead of schedule.

    Pivot Onsite InnovationsAcquisition of onsite health clinics

    Acquisition completed in June 2025. Integration is complete and performance is strong, ahead of original estimates.

    UndisclosedAcquisition of 3 centers in California

    Added 3 centers in California via acquisition during Q1 FY26.

    Risks & headwinds

    3
    Muted Employer Services GrowthQ1 FY26

    Employer Services visit volume increased only 4.8% (0.7% excluding Nova)

    Mitigation: Focus on workers' compensation as the primary engine of the business; optimism for future job growth, especially in blue-collar sectors; gaining market share.

    Increased General and Administrative ExpensesQ1 FY26

    G&A as % of revenue increased to 9.7% from 9.3% in prior year

    Mitigation: Costs are predominantly driven by planned team additions and IT infrastructure for the separation from Select, which is ahead of schedule and expected to be completed by end of summer 2026.

    Uncertainty in New York Workers' Compensation RatesAnticipated decision this year, potentially effective January 1

    No new update on New York rates; current rates not as attractive as desired

    Mitigation: Company has done extensive analysis and has a robust pipeline, allowing for selective and quick expansion if rates improve; continuing de novo growth in other states in the interim.

    What to watch in Q2 FY26

    5

    New York Workers' Comp Rate Decision

    This year (Q2/Q3 FY26)
    CurrentNo new update, decision anticipated this year
    TargetFinal decision on rates, potentially effective January 1

    Why it matters

    Will determine the attractiveness and timing of📎 expansion into the New York market, a significant potential growth area.

    Yes, no new update. I'm not sure when we're going to hear something but anticipate it will happen this year. And that January 1, something will go into play.

    Q&A highlights

    5

    What were the primary drivers behind the significant Q1 earnings beat, and did weather play a quantifiable positive role?

    Matt DiCanio attributed the beat to higher-than-expected workers' compensation visit volumes and strong cost control and staffing efficiencies. Keith Newton confirmed that weather, specifically more ice and snow events compared to a mild prior year, was a net positive for the business by increasing slips and falls, particularly in the Northeast, though not quantified.

    “what really drove the results in Q1 was the work comp visits and also our cost of services and cost control. So our teams did a great job from a staffing perspective. across the centers and the visit volume was higher than expected.”

    asked by Ann Hynes · answered by Matthew DiCanio

    2 min read6 chapters

    Detailed Narrative

    01

    Acquisition Integration Success

    Concentra successfully integrated the Nova (March 2025) and Pivot (June 2025) acquisitions, capturing expected synergies ahead of schedule. Nova is tracking well towards its original objective of reaching a transaction multiple below 7.5x adjusted EBITDA, and Pivot is ahead of its original estimate of a transaction multiple below 9x adjusted EBITDA. The strong performance from these integrations contributed to the overall positive quarter.

    02

    Strategic De Novo and M&A Growth

    The company added 3 centers via acquisition and 1 de novo center outside Atlanta in Q1. Concentra plans to open a total of 8-10 de novo centers in 2026, with planned locations in Arizona, Idaho, Missouri, Illinois, Virginia, South Carolina, and Florida. Management is also actively pursuing additional small bolt-on M&A opportunities, indicating a multi-pronged growth strategy.

    03

    Separation from Select Medical Progress

    Concentra is making significant progress on its functional separation from Select Medical, with over 95% of the total expected new full-time employees already hired. The company expects to complete several significant back-office technology separation milestones and achieve functional separation by the end of summer 2026, well ahead of the November 2026 deadline.

    04

    Dr. John Anderson's Retirement

    Dr. John Anderson, Chief Medical Officer since 2014 and a foundational part of the organization for nearly five decades, announced his retirement at the end of the year. He was recognized for shaping the company's mission, clinical orientation, and patient-first mindset. Concentra is conducting a thorough evaluation process for his successor and plans a consulting agreement to ensure a smooth transition.

    05

    Economic Activity and Market Trends

    Management observed a continued "no higher, no fire" macroeconomic environment, particularly impacting Employer Services. However, they expressed optimism regarding recent net job gains, especially in blue-collar sectors, which directly benefits their workers' compensation business. Onshoring and the construction industry, driven by AI build-out and infrastructure projects, are seen as potential future tailwinds.

    06

    New York Rates Update and Expansion Strategy

    There is no new update on New York workers' compensation rates, but management anticipates a decision this year, potentially effective January 1. While current rates are not as attractive as desired, they represent an improvement. Concentra has conducted extensive market analysis and built a robust pipeline, allowing for selective and rapid expansion into New York once conditions become more favorable, while continuing de novo growth in other states.

    AI-generated summary of the company’s earnings call. Not investment advice.