Anne Hines's questions to Concentra Group Holdings Parent Inc (CON) leadership • Q2 2025
Question
Anne Hines from Mizuho asked for a reminder on why labor dynamics are not a major issue for Concentra's business model. She also questioned how the company balances its goal of reaching a sub-3x leverage ratio by year-end 2026 with potential M&A activity.
Answer
CEO Keith Newton explained that their labor model relies on doctors, physical therapists, and medical assistants, which have not faced the same wage pressures as the RNs and LVNs employed by health systems. President & CFO Matthew DiCanio stated that the company is focused on integrating recent acquisitions, which will allow for natural deleveraging. He clarified that their core de novo and small bolt-on M&A strategy is compatible with their leverage targets, with more sizable M&A to be considered later.