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Concentra Group Holdings Parent, Inc. Announces Results for Its First Quarter Ended March 31, 2026, Cash Dividend, and Raised FY 2026 Guidance

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Concentra Group Holdings Parent, Inc. Announces Results for Its First Quarter Ended March 31, 2026, Cash Dividend, and Raised FY 2026 Guidance ADDISON, Texas--( BUSINESS WIRE)--Concentra Group Holdings Parent, Inc. (“Concentra,” the “Company,” “we,” “us,” or “our”) (NYSE: CON), the nation’s largest provider of occupational health services by number of locations, today announced results for its first quarter ended March 31, 2026, the declaration of a cash dividend, and raised guidance for full year 2026.

“Our strong start to 2026 is a testament to the trust our clients place in us to care for their most valuable asset: their people,” said Keith Newton, Chief Executive Officer of Concentra. “The meaningful growth in visit volumes we saw this quarter demonstrates that our clinical model and value proposition continue to lead in workers' compensation. Building on our exceptional operational and financial performance, we remain focused on achieving key strategic objectives and positioning Concentra to deliver long-term shareholder value.”

Matt DiCanio, Concentra’s President and Chief Financial Officer, added, “Our Q1 results demonstrate the inherent strength of our operating model, with broad-based growth across our business supporting our decision to raise our full-year guidance. Beyond the balance sheet, we are focused on disciplined execution of our de novo pipeline and are on track to complete our transition from Select Medical Corporation in the coming months. As an independent company, we are optimizing our operational platform and infrastructure to drive sustained excellence and capitalize on our unique position as a leading health partner for the American workforce.”

First Quarter 2026 Highlights

For the first quarter ended March 31, 2026:

The definition of Adjusted EBITDA and a reconciliation of net income to Adjusted EBITDA are presented in table VII of this release. The definition of Adjusted Earnings per Share and a reconciliation of net income attributable to the Company and earnings per share on a fully diluted basis to Adjusted Net Income Attributable to the Company and Adjusted Earnings per Share on a fully diluted basis are presented in table VIII of this release. The definition of Free Cash Flow and a reconciliation of net cash provided by operating activities to Free Cash Flow are presented in table IX of this release.

Balance Sheet

As of March 31, 2026, our balance sheet reflected cash of $61.7 million, total debt of $1,576.1 million and total assets of $2,889.8 million. Concentra’s net leverage ratio as of March 31, 2026, was 3.4x, which was in compliance with the financial covenant under our credit agreement.

Cash Flow

Cash flows provided by operating activities in the first quarter ended March 31, 2026, totaled $21.0 million compared to $11.7 million for the same quarter of the prior year. The increase in year over year cash flow from operations resulted from higher earnings in 2026. During the first quarter ended March 31, 2026, cash flow from investing activities resulted in cash used of $14.8 million, including capital expenditures of $11.1 million. Concentra had positive Free Cash Flow of $9.9 million in the first quarter ended March 31, 2026, compared to negative Free Cash Flow of $4.0 million for the same quarter of the prior year. Cash flow from financing activities used $24.4 million for the quarter, driven primarily by $15.0 million in repurchases of shares of common stock and $8.0 million in dividend payments. This resulted in a net decrease in cash of $18.2 million for the quarter.

Dividend

On May 5, 2026, the Board of Directors declared a cash dividend of $0.0625 per share. The dividend will be payable on or about June 9, 2026, to stockholders of record as of the close of business on May 19, 2026.

There is no assurance that future dividends will be declared. The declaration and payment of dividends in the future are at the discretion of the Board of Directors after taking various factors into account, including, but not limited to, the Company’s financial condition, operating results, available cash and current and anticipated cash needs, the terms of indebtedness, and other factors the Board of Directors may deem to be relevant.

2026 Business Outlook

Concentra raised its financial guidance for 2026. We now expect to deliver the following results:

A reconciliation of full year 2026 Adjusted EBITDA expectations to net income is presented in table X of this release. A reconciliation of full year 2026 Free Cash Flow expectations to net cash provided by operating activities is presented in table XI of this release.

Company Overview

Concentra is the largest provider of occupational health services in the United States by number of locations, with the mission of improving the health of America’s workforce, one patient at a time. Our approximately 13,000 colleagues and affiliated physicians and clinicians support the delivery of an extensive suite of services, including occupational and consumer health services and other direct-to-employer care. We support the care of approximately 54,000 patients each business day on average across 47 states and the District of Columbia at our 632 occupational health centers, 411 onsite health clinics at employer worksites, and Concentra Telemed as of March 31, 2026.

Conference Call

Concentra will host a conference call regarding its first quarter financial results and business outlook on Friday, May 8, 2026, at 9 a.m. Eastern Time. The conference call will be a live webcast and can be accessed via this Earnings Call Webcast Link or via Concentra’s website at https://ir.concentra.com. A replay of the webcast will be available shortly after the call at the same locations.

Participants may join the audio-only version of the webcast or participate in the question-and-answer session by calling:

Toll Free: 888-506-0062

International: 973-528-0011

Participant Access: All dial-in participants should ask to join the Concentra call.

Certain statements contained herein that are not descriptions of historical facts are “forward-looking” statements (as such term is defined in the Private Securities Litigation Reform Act of 1995), including statements related to Concentra’s 2026 and long-term business outlook. Because such statements include risks and uncertainties, actual results may differ materially from those expressed or implied by such forward-looking statements due to factors including the following:

Except as required by applicable law, including the securities laws of the United States and the rules and regulations of the Securities and Exchange Commission, we are under no obligation to publicly update or revise any forward-looking statements, whether as a result of any new information, future events, or otherwise. You should not place undue reliance on our forward-looking statements. Although we believe that the expectations reflected in our forward-looking statements are reasonable, we cannot guarantee future results or performance.

I. Condensed Consolidated Statements of Operations

For the Three Months Ended March 31, 2026, and 2025

(In thousands, except per share amounts, unaudited)

Three Months Ended March 31,

2026

2025

% Change

Revenue

$

569,555

$

500,752

13.7

%

Costs and expenses:

Cost of services, exclusive of depreciation and amortization

399,086

357,101

11.8

General and administrative, exclusive of depreciation and amortization (1)

55,280

46,713

18.3

Depreciation and amortization

19,648

16,619

18.2

Total costs and expenses

474,014

420,433

12.7

Other operating income

69

N/M

Income from operations

95,610

80,319

19.0

Other income and expense:

Loss on early retirement of debt

(875

)

N/M

Interest expense

(26,003

)

(25,548

)

1.8

Income before income taxes

69,607

53,896

29.2

Income tax expense

17,315

13,254

30.6

Net income

52,292

40,642

28.7

Less: net income attributable to non-controlling interests

1,804

1,731

4.2

Net income attributable to the Company

$

50,488

$

38,911

29.8

%

Basic and diluted earnings per common share: (2)

$

0.39

$

0.30

Includes transition services agreement fees of $1.6 million and $3.7 million for the three months ended March 31, 2026, and 2025, respectively.

Refer to table II for calculation of earnings per common share.

N/M

Not meaningful

II. Earnings per Share

For the Three Months Ended March 31, 2026, and 2025

(In thousands, except per share amounts, unaudited)

As of March 31, 2026, and 2025, the Company’s capital structure consists of common stock and unvested restricted stock. To calculate earnings per share (“EPS”) for the three months ended March 31, 2026, and 2025, the Company applied the two-class method because its unvested restricted shares were participating securities.

The following table sets forth the net income attributable to the Company, its shares, and its participating shares:

Three Months Ended March 31,

2026

2025

Net income

$

52,292

$

40,642

Less: net income attributable to non-controlling interests

1,804

1,731

Net income attributable to the Company

50,488

38,911

Less: distributed and undistributed net income attributable to participating securities

1,065

455

Distributed and undistributed net income attributable to common shares

$

49,423

$

38,456

The following table sets forth the computation of EPS under the two-class method:

Three Months Ended March 31, 2026

Three Months Ended March 31, 2025

Net Income Allocation

Shares (1)

Basic and Diluted EPS

Net Income Allocation

Shares (1)

Basic and Diluted EPS

Common shares

$

49,423

125,781

$

0.39

$

38,456

126,647

$

0.30

Participating securities

1,065

2,710

$

0.39

455

1,500

$

0.30

Total Company

$

50,488

128,491

$

0.39

$

38,911

128,147

$

0.30

Represents the weighted average shares outstanding during the period.

III. Condensed Consolidated Balance Sheets

(In thousands, except par value and share data, unaudited)

March 31, 2026

December 31, 2025

ASSETS

Current assets:

Cash

$

61,699

$

79,899

Accounts receivable

296,508

257,900

Prepaid income taxes

1,247

2,385

Other current assets

44,760

42,914

Total current assets

404,214

383,098

Operating lease right-of-use assets

500,645

483,652

Property and equipment, net

223,895

225,309

Goodwill

1,480,116

1,479,192

Other identifiable intangible assets, net

238,951

242,556

Non-current deferred tax asset

21,508

24,120

Other assets

20,431

20,461

Total assets

$

2,889,760

$

2,858,388

LIABILITIES AND EQUITY

Current liabilities:

Current operating lease liabilities

$

85,252

$

84,582

Current portion of long-term debt and notes payable

13,664

10,738

Accounts payable

31,737

21,005

Accrued and other liabilities

190,222

220,922

Total current liabilities

320,875

337,247

Non-current operating lease liabilities

461,232

443,642

Long-term debt, net of current portion

1,562,483

1,563,658

Non-current deferred tax liability

47,742

48,906

Other non-current liabilities

43,458

44,506

Total liabilities

2,435,790

2,437,959

Redeemable non-controlling interests

21,762

19,404

Stockholders’ equity:

Common stock, $0.01 par value, 700,000,000 shares authorized, 127,961,780 and 128,633,374 shares issued and outstanding at March 31, 2026, and December 31, 2025, respectively

1,280

1,286

Capital in excess of par

237,896

248,899

Retained earnings

186,845

146,448

Accumulated other comprehensive loss

(1,308

)

(3,352

)

Total stockholders’ equity

424,713

393,281

Non-controlling interests

7,495

7,744

Total equity

432,208

401,025

Total liabilities and equity

$

2,889,760

$

2,858,388

IV. Condensed Consolidated Statements of Cash Flows

For the Three Months Ended March 31, 2026, and 2025

(In thousands, unaudited)

Three Months Ended March 31,

2026

2025

Operating activities

Net income

$

52,292

$

40,642

Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation and amortization

19,648

16,619

Loss on early retirement of debt

51

Stock compensation expense

4,135

2,269

Amortization of debt discount and issuance costs

1,028

976

Deferred income taxes

815

(1,028

)

Other

16

10

Changes in operating assets and liabilities, net of effects of business combinations:

Accounts receivable

(38,626

)

(21,145

)

Other current assets

(1,785

)

(2,753

)

Other assets

1,405

902

Accounts payable and accrued liabilities

(17,909

)

(24,844

)

Net cash provided by operating activities

21,019

11,699

Investing activities

Business combinations, net of cash acquired

(3,760

)

(279,018

)

Purchases of property and equipment

(11,088

)

(15,732

)

Proceeds from sale of assets

2

1

Net cash used in investing activities

(14,846

)

(294,749

)

Financing activities

Borrowings on revolving facilities

50,000

Proceeds from term loans, net of issuance costs

948,848

Payments on term loans

(2,375

)

(847,875

)

Borrowings of other debt

4,912

6,468

Principal payments on other debt

(2,128

)

(4,695

)

Dividends paid to common stockholders

(8,017

)

Repurchase of common shares

(14,996

)

Distributions to non-controlling interests

(1,769

)

(842

)

Net cash (used in) provided by financing activities

(24,373

)

151,904

Net decrease in cash

(18,200

)

(131,146

)

Cash at beginning of period

79,899

183,255

Cash at end of period

$

61,699

$

52,109

Supplemental information

Cash paid for interest

$

36,670

$

38,137

Cash refund received for taxes

$

(781

)

$

(48

)

V. Disaggregated Revenue

For the Three Months Ended March 31, 2026, and 2025

(In thousands, unaudited)

The following table disaggregates the Company’s revenue:

Three Months Ended March 31,

2026

2025

Occupational health centers:

Workers’ compensation

$

337,679

$

302,107

Employer services

172,368

160,140

Consumer health

7,830

8,611

Other occupational health center revenue

2,024

2,064

Total occupational health center revenue

519,901

472,922

Onsite health clinics

37,196

16,550

Other

12,458

11,280

Total revenue

$

569,555

$

500,752

VI. Key Statistics

For the Three Months Ended March 31, 2026, and 2025

The following table sets forth facility counts for our occupational health centers and onsite health clinics operating segments for the periods presented:

Three Months Ended March 31,

2026

2025

Facility Counts

Number of occupational health centers—start of period

628

552

Number of occupational health centers acquired

3

72

Number of occupational health centers de novos

1

3

Number of occupational health centers closed

Number of occupational health centers—end of period

632

627

Number of onsite health clinics—end of period

411

160

The following table sets forth operating statistics for our occupational health centers operating segment for the periods presented:

Three Months Ended March 31,

2026

2025

% Change

Number of patient visits

Workers’ compensation

1,583,343

1,444,880

9.6

%

Employer services

1,778,584

1,696,412

4.8

%

Consumer health

57,164

63,076

(9.4

)%

Total

3,419,091

3,204,368

6.7

%

Visits per day volume

Workers’ compensation

25,132

22,935

9.6

%

Employer services

28,231

26,927

4.8

%

Consumer health

907

1,001

(9.4

)%

Total

54,271

(3)

50,863

6.7

%

Revenue per visit (1)

Workers’ compensation

$

213.27

$

209.09

2.0

%

Employer services

96.91

94.40

2.7

%

Consumer health

136.97

136.52

0.3

%

Total

$

151.47

$

146.94

3.1

%

Business Days (2)

63

63

Represents the average amount of revenue recognized for each patient visit. Revenue per visit is calculated as total patient revenue divided by total patient visits. Revenue per visit as reported includes only the revenue and patient visits in our occupational health centers operating segment and does not include our onsite health clinics or other businesses operating segments.

Represents the number of days in which normal business operations were conducted during the periods presented.

Does not foot due to rounding.

VII. Net Income to Adjusted EBITDA Reconciliation

For the Three Months Ended March 31, 2026, and 2025

(In thousands, unaudited)

Adjusted EBITDA and Adjusted EBITDA margin are non-GAAP measures that we believe provide useful insight into the underlying performance of our business by excluding items that may obscure trends in our core operating results. These metrics are not intended to be substitutes for U.S. GAAP measures such as net income and net income margin, and may differ from similarly titled metrics supported by other companies. We use these non-GAAP measures internally for budgeting, forecasting, and evaluating performance. Investors should consider these measures in addition to, and not as a replacement for, U.S. GAAP results reported in our financial statements.

Adjusted EBITDA is a supplemental measure that we believe offers useful insight into the Company’s business performance by excluding items that do not reflect the core operations of the Company. We define Adjusted EBITDA as net income before interest, income taxes, depreciation and amortization, stock compensation expense, acquisition related costs, gains or losses on early retirement of debt, and separation transaction costs. We define Adjusted EBITDA margin as Adjusted EBITDA divided by total revenue. Adjusted EBITDA margin is a supplemental measure that we believe helps assess the efficiency of our operations on a normalized basis.

The following table reconciles net income to Adjusted EBITDA and net income margin to Adjusted EBITDA margin and should be referenced when we discuss Adjusted EBITDA and Adjusted EBITDA margin.

Three Months Ended March 31,

2026

2025

Amount

% of Revenue (4)

Amount

% of Revenue (4)

Reconciliation of Adjusted EBITDA:

Net income (1)

$

52,292

9.2

%

$

40,642

8.1

%

Add (Subtract):

Income tax expense

17,315

3.0

13,254

2.6

Interest expense

26,003

4.6

25,548

5.1

Loss on early retirement of debt

875

0.2

Stock compensation expense

4,135

0.7

2,269

0.5

Depreciation and amortization

19,648

3.4

16,619

3.3

Separation transaction costs (2)

1,076

0.2

315

0.1

Nova and Pivot Onsite Innovations acquisition costs

219

0.0

3,137

0.6

Adjusted EBITDA (3)

$

120,688

21.2

%

$

102,659

20.5

%

The percentage of revenue values on this row represent the net income margin for the period.

Separation transaction costs represent non-recurring incremental consulting, legal, audit-related fees, system implementation, and software disposal costs incurred in connection with the Company’s separation into a new, publicly traded company and are included within general and administrative expenses on the condensed consolidated statements of operations.

The percentage of revenue values on this row represent the Adjusted EBITDA margin for the period.

Totals in this column may not foot due to rounding.

VIII. Earnings per Share to Adjusted Earnings per Share Reconciliation

For the Three Months Ended March 31, 2026, and 2025

(In thousands, except per share amounts, unaudited)

Adjusted Net Income Attributable to the Company and Adjusted Earnings per Share are used by management to provide useful insight into the underlying performance of our business. Adjusted Net Income Attributable to the Company and Adjusted Earnings per Share are not measures of financial performance under U.S. GAAP and are not intended to be substitutes for U.S. GAAP measures such as net income attributable to the Company or earnings per share. These metrics may differ from similarly titled metrics supported by other companies. We believe that the presentation of Adjusted Net Income Attributable to the Company and Adjusted Earnings per Share are important to investors because they are reflective of the financial performance of Concentra’s ongoing operations and provide better comparability of its results of operations between periods. Investors should consider these measures in addition to, and not as a replacement for, U.S. GAAP results reported in our financial statements.

We define Adjusted Net Income Attributable to the Company as net income attributable to the Company, excluding gain (loss) on early retirement of debt, separation transaction costs, and acquisition costs, all on an after tax basis. We define Adjusted Earnings per Share as the Adjusted Net Income Attributable to the Company divided by the diluted weighted average shares outstanding.

The following table reconciles net income attributable to the Company and earnings per share on a fully diluted basis to Adjusted Net Income Attributable to the Company and Adjusted Earnings per Share on a fully diluted basis.

Three Months Ended March 31,

2026

Per Share (4)

2025

Per Share (4)

Reconciliation of Adjusted Net Income Attributable to the Company: (1)

Net income attributable to the Company

$

50,488

$

0.39

$

38,911

$

0.30

Adjustments:

Loss on early retirement of debt

875

0.01

Separation transaction costs (2)

1,076

0.01

315

0.00

Nova and Pivot Onsite Innovations acquisition costs

219

0.00

3,137

0.02

Total additions (subtractions), net

$

1,295

$

0.01

$

4,327

$

0.03

Less: tax effect of adjustments (3)

(322

)

(0.00

)

(1,064

)

(0.01

)

Adjusted Net Income Attributable to the Company

$

51,461

$

0.40

$

42,174

$

0.33

Weighted average shares outstanding - diluted

128,491

128,147

Beginning in the second quarter of 2025, we updated the schedule for all periods presented to include Net Income Attributable to the Company. Management believes this measure will provide an improved insight into the performance of our business. As a result, the reconciliation for the three months ended March 31, 2025, has been recast to conform to the current period’s presentation.

Separation transaction costs represent non-recurring incremental consulting, legal, audit-related fees, system implementation, and software disposal costs incurred in connection with the Company’s separation into a new, publicly traded company and are included within general and administrative expenses on the condensed consolidated statements of operations.

Tax impact is calculated using the annual effective tax rate, including discrete costs and benefits.

Totals in this column may not foot due to rounding.

IX. Net Cash Provided by Operating Activities to Free Cash Flow Reconciliation

For the Three Months ended March 31, 2026, and 2025

(In thousands, unaudited)

Free Cash Flow is used by management to provide useful insight into the underlying performance of our business. Free Cash Flow is not a measure of financial performance under U.S. GAAP and is not intended to be a substitute for U.S. GAAP measures, such as net cash provided by operating activities. This metric may differ from similarly titled metrics supported by other companies. We believe that the presentation of Free Cash Flow is important to investors because it is reflective of the financial performance and cash flows of Concentra’s ongoing operations and provides a better comparability of its cash flows between periods. Investors should consider these measures in addition to, and not as a replacement for, U.S. GAAP results reporting in our financial statements.

We define Free Cash Flow as net cash provided by operating activities less net cash used in investing activities, excluding business combinations, net of cash acquired.

The following table reconciles net cash provided by operating activities to Free Cash Flow.

Three Months Ended March 31,

2026

2025

Reconciliation of Free Cash Flow:

Net cash provided by operating activities

$

21,019

$

11,699

Add (Subtract):

Net cash used in investing activities

(14,846

)

(294,749

)

Business combinations, net of cash acquired

3,760

279,018

Free Cash Flow

$

9,933

$

(4,032

)

X. 2026 Net Income to Adjusted EBITDA Reconciliation

Business Outlook for the Year Ending December 31, 2026

(In millions, unaudited)

The following is a reconciliation of full year 2026 Adjusted EBITDA expectations as computed at the low and high points of the range to the closest comparable U.S. GAAP financial measure. Refer to table VII for discussion of Concentra’s use of Adjusted EBITDA in evaluating financial performance and for the definition of Adjusted EBITDA. Each item presented in the below table is an estimation of full year 2026 expectations.

Range

Low

High

Net income attributable to the Company

$

184

$

199

Net income attributable to non-controlling interests

7

7

Net income

$

191

$

206

Income tax expense

63

68

Interest expense

104

104

Income from operations

358

378

Stock compensation expense

21

21

Depreciation and amortization

80

80

Separation transaction costs

1

1

Adjusted EBITDA

$

460

$

480

XI. 2026 Net Cash Provided by Operating Activities to Free Cash Flow Reconciliation

Business Outlook for the Year Ending December 31, 2026

(In millions, unaudited)

The following is a reconciliation of full year 2026 Free Cash Flow expectations as computed at the low and high points of the range to the closest comparable U.S. GAAP financial measure. Refer to table IX for discussion of Concentra’s use of Free Cash Flow in evaluating financial performance and for the definition of Free Cash Flow. Each item presented in the below table is an estimation of full year 2026 expectations.

Range

Low

High

Reconciliation of Free Cash Flow:

Net cash provided by operating activities

$

295

$

305

Add (Subtract):

Net cash used in investing activities

(84

)

(74

)

Business combinations, net of cash acquired

4

4

Free Cash Flow

$

215

$

235