CON — Concentra Group Holdings Parent, Inc.

Summary of Concentra Group Holdings Parent, Inc. Q4 2025 Earnings Call

1. Key Financial Results and Metrics

• Q4 2025 Revenue: $539.1 million, up 15.9% year-over-year from $465.0 million.
• Excluding Acquisitions: Revenue was $493.8 million, a 6.2% increase year-over-year.
• Full Year 2025 Revenue: $2.2 billion, a 13.9% increase from $1.9 billion in 2024.
• Adjusted EBITDA: $95.3 million in Q4 2025, a 22.9% increase from $77.5 million in Q4 2024; full-year adjusted EBITDA was $431.9 million, up 14.6%.
• Adjusted Net Income: $36.1 million in Q4 2025, compared to $22.2 million in Q4 2024; full-year adjusted net income was $176.0 million.
• Adjusted EPS: $0.28 for Q4 2025, up from $0.17 in Q4 2024; full-year adjusted EPS was $1.37.
• Patient Visits: Increased 9% in Q4 to over 51,000 visits per day; full-year visits rose 7.7% to over 53,000 per day.

2. Strategic Updates and Business Highlights

• Acquisitions: Completed the integration of Nova and Pivot, contributing to revenue growth. The company plans to continue with smaller bolt-on acquisitions.
• De Novo Openings: Opened two new sites in Q4, totaling seven for 2025, with a strong pipeline for 2026 targeting seven to nine new locations.
• Operational Efficiency: Improved cost management led to a decrease in cost of services as a percentage of revenue, from 74.2% in Q4 2024 to 73.9% in Q4 2025.
• Market Position: The company highlighted its value proposition in workers' compensation, showing a 25% lower average claim cost compared to non-Concentra providers.

3. Forward Guidance and Outlook

• 2026 Revenue Guidance: Targeting between $2.25 billion and $2.35 billion.
• Adjusted EBITDA Guidance: Expected between $450 million and $470 million.
• CapEx Guidance: Anticipated between $70 million and $80 million.
• Free Cash Flow Guidance: Projected between $200 million and $225 million.
• Leverage Target: Aiming for approximately 3.0x by the end of 2026.

4. Bad News, Challenges, or Points of Concern

• Labor Market Conditions: The broader labor market growth was only 0.1% in 2025, which could impact future patient volumes.
• Increased Costs: Anticipated incremental separation costs in 2026 as the company completes its transition from Select Medical.
• Regulatory Risks: The company is monitoring potential changes in workers' compensation fee schedules, particularly in New York, which could affect future expansion plans.

5. Notable Q&A Insights

• Weather and Respiratory Illness Impact: Management does not anticipate significant impacts from weather or respiratory illnesses on patient volumes.
• Market Share Gains: The company is focusing on technology to improve customer retention and engagement, particularly with smaller clients.
• New York Fee Schedule: The company is actively participating in discussions regarding the New York workers' compensation fee schedule, seeking comprehensive changes to enhance reimbursement rates.
• Labor Retention: The company reported favorable trends in labor retention and wage inflation, aligning with broader economic trends.

Overall, Concentra Group Holdings Parent, Inc. demonstrated strong financial performance in Q4 2025 and for the full year, with positive growth in revenue, EBITDA, and patient visits. The company is strategically positioned for continued growth through acquisitions and new site openings, while also navigating challenges related to labor market conditions and regulatory environments.