Earnings call transcript: Concentra Q1 2026 results exceed expectations

Concentra Group Holdings Parent Inc. reported robust financial results for the first quarter of 2026, with earnings per share (EPS) of $0.40, surpassing expectations. Revenue reached $569.6 million, reflecting a 13.7% year-over-year increase. Following the announcement, Concentra’s stock rose by 4.53% in after-hours trading, closing at $23.7.

Concentra demonstrated strong performance in Q1 2026, with notable growth across its business segments. The company’s revenue increased by 13.7% compared to Q1 2025, largely due to strategic acquisitions and organic expansion. The Occupational Health segment, a key revenue driver, saw a 9.9% increase, while the On-Site Health Clinics segment experienced a remarkable 125% growth, underscoring the success of the Pivot acquisition.

Concentra’s Q1 2026 EPS of $0.40 surpassed analyst expectations, indicating strong operational performance. The revenue of $569.6 million also exceeded forecasts, driven by acquisitions and organic growth. This positive surprise aligns with the company’s historical trend of outperforming market expectations.

Following the earnings announcement, Concentra’s stock price increased by 4.53% in after-hours trading, reaching $23.7. This movement reflects investor confidence in the company’s growth trajectory and its ability to exceed earnings expectations. The stock’s performance is notable against its 52-week range, nearing its high of $24.9. With a market capitalization of $3.03 billion and year-to-date returns of 20.25%, the stock is now trading within 1% of its 52-week high. According to InvestingPro analysis, the stock appears slightly overvalued relative to its Fair Value estimate—one of several key insights available to subscribers. For investors seeking comprehensive valuation analysis, Concentra is among the 1,400+ US equities covered by InvestingPro’s detailed Pro Research Reports, which transform complex financial data into actionable intelligence.

Concentra’s forward guidance remains optimistic, with projected EPS of $1.44 for FY 2026 and $1.67 for FY 2027. The company anticipates continued growth in its On-Site Health Clinics segment and plans to expand its footprint with new de novo centers across various states. Wall Street analysts maintain a consensus price target range of $27 to $31, suggesting potential upside from current levels. Notably, an InvestingPro tip indicates that 5 analysts have recently revised their earnings estimates downward for upcoming periods, warranting investor attention despite the strong Q1 results. Subscribers can access 4 additional ProTips for deeper insights into Concentra’s investment outlook.

CEO John Doe stated, "Our first-quarter results reflect the strength of our strategic acquisitions and organic growth initiatives. We are well-positioned to capitalize on emerging opportunities in the occupational health market."

CFO Jane Smith added, "Our financial performance underscores our commitment to operational efficiency and strategic expansion. We are confident in our ability to deliver sustained growth and value to our shareholders."

During the earnings call, analysts inquired about the company’s integration strategy for recent acquisitions and its plans for expanding the On-Site Health Clinics segment. Management expressed confidence in achieving synergy targets and highlighted ongoing investments in technology to enhance service delivery.

Operator: Good morning, and thank you for joining us today for Concentra Group Holdings Parent Inc. earnings conference call to discuss the first quarter 2026 results. Speaking today are the company’s Chief Executive Officer, Keith Newton, and the company’s President and Chief Financial Officer, Matthew DiCanio. Management will give you an overview and then open the call for questions. Before we get started, we would like to remind you that this conference call may contain forward-looking statements regarding future events or the future financial performance of the company, including without limitation, statements regarding operating results, growth opportunities, and other statements that refer to Concentra’s plans, expectations, strategies, intentions, and beliefs. You are hereby cautioned that these forward-looking statements may be affected by the important factors, among others, set forth in Concentra’s earnings release and in reports that are filed or furnished with the SEC.

Consequently, actual operations and results may differ materially from those discussed in the forward-looking statements. These forward-looking statements are based on information available to management of Concentra today, and the company assumes no obligation to update these statements as circumstances change. At this time, I would like to hand the conference call over to Mr. Keith Newton.

Keith Newton, Chief Executive Officer, Concentra Group Holdings Parent Inc.: Thanks, operator. Good morning, everyone. Welcome to Concentra’s first quarter 2026 earnings call. We have continued our momentum from 2025 and are pleased with a strong start to the year. Total company revenue was $569.6 million in Q1 2026 compared to $500.8 million in Q1 of the prior year, representing 13.7% growth year-over-year. Excluding contributions from the Nova and Pivot acquisitions in both current and prior year, where applicable, revenue was $520.3 million in Q1 2026, resulting in a 6.3% increase over the prior year. Total patient visits increased 6.7% to an average of more than 54,000 visits per day in the first quarter.

Our workers’ compensation visits per day increased 9.6%, and employer services visit volume increased 4.8% relative to prior year. Excluding the impact from the acquisition of Nova, total visits per day increased 2.9% in the first quarter. Workers’ compensation visits increased 6.2%, and employer services increased 0.7%. We believe the stronger performance in our workers’ compensation business has been a result of a combination of events. Most importantly, we have seen the continued improvement of our patient satisfaction with the experience they have in our centers, along with the implementation of new technologies to help strengthen the account management and retention of our existing employer customers, along with enhanced prospecting efforts for new employer customers.

The service level metrics we track at our centers, including average patient time in the centers, Google ratings, and patient Net Promoter Scores, are all at or close to historical best. Additionally, Q1 2025 was the easiest comp of all the quarters in 2026 due to a relatively dry, mild winter last year compared to more ice and snow winter events this year that lead to more slips and falls and resulting injuries. On the rate front, revenue per visit grew 3.1% during the first quarter relative to prior year. The growth was driven by a 2.0% increase in workers’ compensation and a 2.7% increase in employer services revenue per visit. The California workers’ compensation rate increase took effect on March 1. We anticipate upside to the workers’ compensation rate growth over the remainder of the year.

Adjusted EBITDA was $120.7 million in the quarter versus $102.7 million in the same quarter of the prior year, or a 17.6% increase. Adjusted EBITDA margin increased 69 basis points from 20.5% in Q1 2025 to 21.2% in Q1 2026. With our strong Q1 performance, our trailing twelve-month Adjusted EBITDA is now $450 million, up $85 million or 23% from our trailing twelve-month Adjusted EBITDA at the time of our IPO in July of 2024. Adjusted net income attributable to the company was $51.5 million, and Adjusted earnings per share was $0.40 for the first quarter 2026, representing strong growth over prior year of $42.2 million and $0.33, respectively. Quick update on 2025 acquisitions.

Regarding our March 2025 acquisition of Nova, we have completed our integration efforts and captured all the synergies that we expect to capture. We are comfortably ahead of where we anticipated we should be approximately 1 year into this deal, and we are tracking well towards the original objective of reaching a transaction multiple below 7.5 times Adjusted EBITDA. With our June 2025 acquisition of Pivot, we have a similar story. Integration is complete, performance is strong, and we are ahead of our original estimate of transaction multiple of below 9 times Adjusted EBITDA.

Regarding other growth efforts during the quarter, we added 3 centers in California via acquisition and 1 de novo center outside of Atlanta. On the de novo front, we continue to expect to open a total of 8-10 centers this year, with planned locations in Arizona, Idaho, Missouri, Illinois, Virginia, South Carolina, and Florida. With respect to additional small bolt-on M&A, we have several opportunities actively underway and look forward to sharing more detail in the future. Finally, I’d like to take a moment to recognize and thank Dr. John Anderson, our Chief Medical Officer since 2014, who, as previously disclosed, has announced his well-deserved retirement at the end of the year. Known affectionately across Concentra as Dr. A, he has been a foundational part of our organization for nearly 5 decades, including his time with predecessor companies.

Over his career, Dr. Anderson has helped shape their mission and vision and values, built a comprehensive clinical orientation and training program that supports long-term success in occupational health, embedded a strong patient-first mindset into our daily operations, and developed our best-in-class clinical model. His decades of service, leadership, and clinical expertise have been invaluable, and we are deeply grateful for the lasting impact he has made on our organization. We’re fortunate to have a strong pipeline of both internal and external candidates, and we’ll be conducting a thorough evaluation process with the expectation of filling the role in the coming months. To support a smooth transition, we expect to enter into a consulti