Concentra Group Holdings Parent, Inc. (CON) Q1 2025 Earnings Summary

Executive Summary

Q1 2025 revenue and EPS modestly beat consensus; management raised FY 2025 revenue and EBITDA guidance on stronger volumes, pricing, and M&A contributions. Revenue was $500.8M (+7.1% YoY), Adjusted EPS $0.32, and Adjusted EBITDA $102.7M (20.5% margin) . Versus S&P consensus: revenue $496.1M*, EPS $0.316* (both beats).
Visit growth inflected positively in Employer Services (+3.9% per day; +0.9% organic excluding Nova), while Workers’ Comp continued to grow (+2.4% per day), and revenue per visit rose 5.6% on broad fee schedule/pricing gains .
FY 2025 guidance raised: revenue to $2.10–$2.15B (from ~$2.10B) and Adjusted EBITDA to $415–$430M (from $410–$425M); capex and net leverage outlook maintained (capex $80–$90M; net leverage ~3.5x) .
Strategic catalysts: Nova acquisition closed (Mar 1), Pivot Onsite Innovations signed (expected Q2 close), three de novos launched; quarterly dividend of $0.0625/share maintained .
Net income declined YoY to $40.6M (from $50.3M) due to higher interest expense post-IPO recap; cash from operations was seasonally softer ($11.7M) on higher interest payments and typical Q1 timing .

What Went Well and What Went Wrong

What Went Well
- Employer Services volumes turned positive YoY (+3.9% per day; +0.9% organic), breaking a multi-quarter decline; management emphasized multi-channel sales/marketing and improving labor market dynamics as drivers .
- Strong pricing/rate execution lifted revenue per visit +5.6% (Workers’ Comp +7.1%, Employer Services +3.9%), aided by fee schedule updates including Florida and annual employer pricing actions .
- Corporate development momentum: closed Nova (+67 centers), signed Pivot (~200 clinics), launched 3 de novos, executed debt repricing/upsizing; management ahead on synergy capture and tracking above forecast at Nova .
What Went Wrong
- Net income fell YoY (to $40.6M from $50.3M) on higher interest expense from the IPO recapitalization; adjusted EPS also down YoY ($0.32 vs $0.49) .
- Cash from operations fell to $11.7M (vs $44.6M YoY) due to a ~$28.2M increase in interest payments and normal Q1 cash timing (bonus payouts, semiannual bond interest) .
- G&A as % of revenue rose YoY (9.3% vs 7.9%), partly due to prior-year favorable out-of-period reversal and added stand-alone public company support FTEs .

Financial Results

Headline financials vs prior year and prior quarter:

Metric	Q1 2024	Q4 2024	Q1 2025
Revenue ($USD Millions)	$467.6	$465.0	$500.8
Net Income ($USD Millions)	$50.3	$22.8	$40.6
Diluted EPS ($)	$0.47	$0.17	$0.30
Adjusted EPS ($)	$0.49	—	$0.32
Adjusted EBITDA ($USD Millions)	$96.1	$77.5	$102.7
Adjusted EBITDA Margin %	20.6%	16.7%	20.5%
Visits per Day (Total)	49,307	46,800	50,863

Segment revenue breakdown (Q1 year-over-year):

Segment ($USD Thousands)	Q1 2024	Q1 2025
Workers’ Compensation (Centers)	$279,866	$302,107
Employer Services (Centers)	$150,735	$160,140
Consumer Health (Centers)	$8,326	$8,611
Other Occupational Health Center Revenue	$2,145	$2,064
Total Occupational Health Centers	$441,072	$472,922
Onsite Health Clinics	$15,857	$16,550
Other	$10,669	$11,280
Total Revenue	$467,598	$500,752

KPIs (Centers; Q1 year-over-year):

KPI	Q1 2024	Q1 2025
Workers’ Comp Visits per Day	22,392	22,935
Employer Services Visits per Day	25,926	26,927
Consumer Health Visits per Day	989	1,001
Total Visits per Day	49,307	50,863
Workers’ Comp Revenue per Visit ($)	195.29	209.09
Employer Services Revenue per Visit ($)	90.84	94.40
Consumer Health Revenue per Visit ($)	131.57	136.52
Total Revenue per Visit ($)	139.09	146.94
Business Days	64	63

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Total Revenue ($USD Billions)	FY 2025	~$2.10	$2.10–$2.15	Raised range
Adjusted EBITDA ($USD Millions)	FY 2025	$410–$425	$415–$430	Raised
Capital Expenditures ($USD Millions)	FY 2025	$80–$90	$80–$90	Maintained
Net Leverage Ratio (x)	FY 2025 YE	~3.5x	~3.5x	Maintained
Dividend	Q2 2025	$0.0625/share (ongoing framework)	$0.0625/share, payable May 29, 2025; record May 20, 2025	Maintained

Earnings Call Themes & Trends

Topic	Previous Mentions (Q3 2024, Q4 2024)	Current Period (Q1 2025)	Trend
Employer Services volumes	Declines persisted (−4% per day Q3; −4.8% Q4), stabilization expected with macro improvements	Positive inflection (+3.9% per day; +0.9% organic excluding Nova)	Improving
Workers’ Comp volumes	Positive YoY growth; volume tied to total employment	+2.4% per day (0.2% organic); sustained positive outlook	Stable to up
Pricing/rates	Strong rate increases; Florida fee schedule effective Jan 1, 2025; ongoing 3%+ LT framing	+5.6% revenue/visit; WC +7.1% (≈5% ex-Florida); ES +3.9%	Elevated vs LT
M&A/Onsite expansion	Pipeline building; declared dividend; separation progress	Nova closed; Pivot signed; 3 de novos; doubling onsite clinics	Accelerating
Macro/tariffs	Weather disruptions sized; tariff exposure minimal	Minimal bottom-line tariff impact; <3% supplies/pharmacy costs; readiness for turbulence	Manageable
Technology/efficiency	Efficiency initiatives, staffing adjustments	Staffing efficiencies lowered cost of services %; tech aids throughput	Supporting margins
Separation from Select	TSA cost timeline and leadership hires	TSA costs included; building stand-alone functions through 2026	On track

Management Commentary

“Concentra reported a solid start to 2025 with strong revenue and Adjusted EBITDA growth…we continue to execute on key drivers of growth…achieve our strategic business objectives for the year.” — CEO Keith Newton .
“We are very pleased with the organic and inorganic growth…first positive year-over-year growth in Employer Services visit volumes in several quarters…closed Nova…signed definitive agreement to acquire Pivot…focused on efficient integration.” — CFO/President Matt DiCanio .
“We are raising…FY 2025 Revenue guidance to $2.100bn–$2.150bn and FY 2025 Adj. EBITDA guidance to $415mm–$430mm…trend has continued into Q2 2025.” — Investor presentation and CFO remarks .
“Tariffs: medical supplies & pharmacy <3% of revenue…mute potential direct impact…cost structure allows rapid adaptation to market conditions.” — Management .

Q&A Highlights

Employer Services inflection: Management cited multi-channel sales/marketing and normalization post-COVID churn; guidance embeds moving to flat then modest positive later in 2025 .
Workers’ Comp rates: Ex-Florida, WC revenue/visit would be ~+5%; long-term average ~3% with near-term elevated due to inflation; most state updates effect in Q1 .
Margin sustainability: 20%+ adjusted EBITDA margins sustainable; Nova only 1 month impact in Q1 with synergy ramp ahead .
Cost of services efficiencies: Staffing optimization, replacing contract clinicians with employed clinicians, technology gains reduced cost of services % .
Pivot Onsite: ~$60M annual revenue, expected Q2 close; immediately accretive with <9x EBITDA multiple by Year 2 post-synergy .
Onsite economics: Cost-plus model; resilience through cycles; expected tailwinds from reshoring/trends in U.S. manufacturing .

Estimates Context

Metric	Consensus (Q1 2025)	Actual (Q1 2025)	Surprise
Revenue ($USD Millions)	496.1*	500.8	Beat
Primary EPS ($)	0.316*	0.32 (Adjusted EPS)	Beat

Values retrieved from S&P Global.*
Notes: Company reports Adjusted EPS; consensus displayed is Primary EPS. EBITDA consensus also indicated a beat vs company’s Adjusted EBITDA (company reported $102.7M) . Management raised FY 2025 revenue and EBITDA guidance on the stronger start and deal activity .

Key Takeaways for Investors

Q1 beat on revenue and EPS with clear operating drivers: pricing strength and positive volume inflection in Employer Services; per-day growth +3.2% despite one fewer business day .
Guidance raised: revenue range expanded to $2.10–$2.15B and EBITDA to $415–$430M; watch Q2 close of Pivot and synergy ramp from Nova as incremental catalysts .
Margin durability: adjusted EBITDA margin returned to ~20.5% (vs 16.7% in Q4); management views 20%+ as sustainable with operational efficiencies and integration synergies .
Cash dynamics: Q1 is seasonally weak for CFO; higher interest from recap weighed YoY; expect stronger CF in summer months alongside deleveraging to ~3.5x YE target .
Strategic footprint expansion: Nova (+67 centers) and Pivot (~200 clinics) deepen access; onsite business effectively doubles—accretive and diversifying revenue mix .
Macro/tariff risk modest given payor mix and cost structure (<1% government reimbursement; supplies/pharmacy <3% of revenue); inflation-linked WC schedules support pricing .
Trading implications: Near-term positive skew from raised guidance and deal closings; medium-term thesis supported by rate/pricing visibility, normalized ES volumes, M&A pipeline, and 20%+ EBITDA margins .

S&P Global estimates disclaimer: Consensus values marked with * were retrieved from S&P Global and may reflect differing metric definitions versus company-reported non-GAAP measures.