Concentra Group Holdings Parent, Inc.(CON)
$43.45+0.78 (+1.83%)
CON
Concentra Group Holdings Parent, Inc. earnings date
$43.45
At close:+0.78 (+1.83%)
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Concentra Group Holdings Parent, Inc. (CON) Q3 2026 Earnings Report
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CON Q3 2026 EPS Results
- Actual EPS
- $0.52
- Consensus EPS
- $0.44
- Beat/Miss
- Beat by +$0.08
- One Year Ago EPS
- $0.39
CON Q3 2026 Revenue Results
- Actual Revenue
- $622.12M
- Expected Revenue
- $605.52M
- Beat/Miss
- Beat by +$16.60M
- YoY Revenue Growth
- +8.61%
Earnings Announcement Details
- Quarter
- Q3 2026
- Date
- 11/05/2026
- Time
- After Close
- Conference Call
- Thursday, November 5, 2026
CON Upcoming Earnings
Concentra Group Holdings Parent, Inc.'s next earnings date is estimated for March 8, 2027, based on past reporting schedules.
Q3 2026 Earnings Call Audio
CON Q3 2026 Earnings Call
0:00 / 0:00
Q3 2026 Earnings Slide Deck
Q3 2026 Earnings Call Summary
Earnings Call Sentiment|Positive
The call was strongly positive overall. Concentra reported broad-based volume and revenue growth, significant earnings and margin expansion, improved retention and market share momentum, a raised 2026 outlook, continued center expansion, debt reduction, and an improved credit profile. The main negatives were lower operating cash flow and free cash flow, a higher G&A ratio, uncertainty around 2027 fee schedules and New York timing, and management's expectation that margin expansion will moderate relative to 2026.
Company Guidance
Concentra raised its 2026 revenue guidance to $2.36 billion to $2.38 billion and adjusted EBITDA guidance to $505 million to $510 million; its free cash flow range of $220 million to $240 million and capital expenditure range of $70 million to $80 million remains unchanged. Completed acquisitions and de novo development are expected to add 15 new centers during 2026, and the company is currently anticipating low double digit de novo openings in 2027. Management expects employer services rate growth to remain generally consistent with its long term expectation of approximately 3%, has no reason to expect aggregate workers' compensation rate growth to differ materially from its long term expectations, and expects to provide formal 2027 guidance early next year; its long term growth algorithm remains low single digit visit growth volumes, 3% rate, and low single digits on core, semi organic growth rate.
- Strong Third-Quarter Revenue and Earnings GrowthTotal revenue increased 8.6% year over year to $622.1 million. Net income was $67.8 million, up 36% from a year ago, and adjusted EBITDA increased 17.9% to $140.2 million.
- Adjusted Earnings per Share and Margin ExpansionAdjusted net income attributable to the company was $66.1 million, and adjusted earnings per share was $0.52 compared with $0.39 in Q3 25, representing 33.3% year-over-year growth. Adjusted EBITDA margin expanded 178 basis points to 22.5%.
- Broad-Based Visit Volume GrowthTotal occupational health center patient visits increased 4.9% to an average of more than 58 thousand visits per day. Workers' compensation visits per day increased 4.2%, and employer services visits per day increased 5.8%. Growth was broad based across all six regions and most end markets.
- Market Share, Retention, and New Business MomentumManagement attributed performance to favorable labor market conditions in many blue-collar sectors and continued market share gains. Customer retention remained at multiyear highs, year-to-date new business activity was tracking ahead of 2025 levels, and management said key performance indicators were at or near all-time highs.
- Employer Services Demand StrengthEmployer services activity was particularly encouraging, with strong increases in hiring-related drug screens and physicals across transportation and logistics, manufacturing, construction-oriented customers, and other industries. Management said the activity indicated healthy workforce demand.
- Revenue per Visit GrowthOccupational health center revenue per visit increased 3.3% year over year. Workers' compensation revenue per visit increased 3.5%, while employer services revenue per visit increased 4.0%. The employer services increase was partly supported by a larger mix of higher-revenue-per-visit physicals relative to drug screens.
- Segment Revenue GrowthOccupational health center revenue increased 8.3% year over year to $569.7 million. Workers' compensation revenue increased 7.9% to $370.5 million, employer services revenue increased 10% to $190.5 million, on-site revenue increased 10% to $38.4 million, and other businesses revenue increased 18.4% to $14.1 million.
- Improved Cost of Services and Operating EfficiencyCost of services was $426.7 million, or 68.6% of revenue, compared with 70.8% in the prior-year quarter. Management attributed the improvement to strong flow-through from visit and rate growth and favorable staffing efficiencies across the centers.
- Center Expansion Through Acquisitions and De NovosConcentra acquired four medical centers in Minnesota and opened three de novo centers in Kansas City, Missouri; Boise, Idaho; and Daytona Beach, Florida, with Boise and Daytona Beach representing new markets. After quarter end, it opened two additional centers near Pensacola, Florida, and Washington, DC, and expects to open one more center before year end.
- Planned 2026 and 2027 Center GrowthCompleted acquisitions and de novo development are expected to add 15 new centers during 2026. Management is currently anticipating low double digit de novo openings in 2027, while its M&A pipeline includes multiple bolt-on transactions progressing well.
- De Novo Ramp-Up ModelManagement said new centers are selected based on injury density, fee schedules, and real estate. Sales and marketing efforts begin months before opening, and new centers can generate approximately 25 visits per day in the first week in some markets and upwards of 50 visits per day in others. Management views the overall de novo payback, inclusive of capital spend, as being in the 2 to 3 year range.
- On-Site Business FundamentalsThe on-site business continued to have strong fundamentals, supported by employers' focus on managing rising health care costs, a growing sales pipeline, strong operational execution, and benefits from the Pivot integration.
- Successful Separation CompletionSeparation activities were described as substantially complete and are expected to conclude with the expiration of the TSA with Select Medical at the end of November. Management characterized the multiyear separation as a smooth and successful transition.
- Raised 2026 Revenue and Adjusted EBITDA OutlookThe company raised its 2026 revenue outlook by increasing the low end by $35 million and the high end by $5 million, resulting in a revised range of $2.36 billion to $2.38 billion. The adjusted EBITDA range was increased to $505 million to $510 million, with the low end up $20 million and the high end up $15 million.
- Maintained Free Cash Flow and Capital Expenditure OutlookThe company maintained its 2026 free cash flow range of $220 million to $240 million and its capital expenditure range of $70 million to $80 million.
- Shareholder Returns and Expanded Repurchase AuthorizationThe company repurchased 1 million shares for $34.65 million and returned an additional $8 million to shareholders through dividends. Approximately $19 million remained under the original $100 million repurchase authorization at September 30, 2026, and the board subsequently authorized a new $250 million share repurchase program with no expiration date.
- Debt Reduction and Improving Credit ProfileConcentra repaid $52.4 million on its Term Loan B during the quarter, including a $50 million discretionary prepayment. It ended the quarter with $1.52 billion of total debt, $85.8 million of cash, and a 2.9x net leverage ratio under its credit agreement. S&P Global upgraded the corporate rating from BB- to BB, and Moody's revised its outlook from stable to positive.
- Capital Allocation FlexibilityManagement said its first priority is accretive organic and inorganic growth, while also working toward a long-term leverage target of 2.5x. Because leverage is below 3x, share repurchases have been elevated alongside debt paydown, and management said the company's free cash flow supports all three activities simultaneously.
- Sustained Staffing and Wage TrendsWage inflation was described as approximately 3%, turnover was stable and improving slightly in certain areas, and management said recruiting and retention had supported strong visit volumes and center-level efficiencies.
- Positive Leadership TransitionMatthew DiCanio became chief executive officer and Tanner Newton became chief financial officer effective November 1. Keith Newton said the appointments reflected a thoughtful succession process and the strength of the leadership team, and he will continue as executive chairman.
- Broad-Based Long-Term Growth DriversManagement said current volume strength is broad based across geographies, industries, employer sizes, and regions. It cited retention, sales technologies, an acquired competitor, a growing blue-collar labor force, and reshoring trends as contributors to visit growth above the long-term algorithm.
- Potential New York Market OpportunityAlthough there was no substantive regulatory update, management said the proposed increases to evaluation and management codes made New York attractive enough to explore entry through de novo development or small bolt-on acquisitions.
CON Earnings History
| Report Date | Fiscal Quarter | Forecast / EPS | Last Year's EPS | EPS YoY Change | Press Release |
|---|---|---|---|---|---|
| Mar 08, 2027 | 2026 (Q4) | 0.30- | 0.28 | ― | ― |
| Nov 05, 2026 | 2026 (Q3) | 0.440.52 | 0.39 | 33.33% (+0.13) | |
| Aug 06, 2026 | 2026 (Q2) | 0.420.52 | 0.35 | 48.57% (+0.17) | |
| May 07, 2026 | 2026 (Q1) | 0.340.40 | 0.3 | 33.33% (+0.10) | |
| Mar 09, 2026 | 2025 (Q4) | 0.230.28 | 0.17 | 64.71% (+0.11) | |
| Nov 05, 2025 | 2025 (Q3) | 0.380.39 | 0.37 | 5.41% (+0.02) | |
| Aug 07, 2025 | 2025 (Q2) | 0.380.35 | 0.5 | -29.72% (-0.15) | |
| May 07, 2025 | 2025 (Q1) | 0.320.30 | 0.48 | -37.50% (-0.18) | |
| Mar 03, 2025 | 2024 (Q4) | 0.170.17 | ― | ― | |
| Oct 31, 2024 | 2024 (Q3) | 0.350.37 | ― | ― |
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat Missed
