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Image source: The Motley Fool. Friday, Aug. 7, 2026 at 9:00 a.m. ET Chief Executive Officer - Keith Newton President and Chief Financial Officer - Matt DiCanio Operator: Good morning and thank you for joining us today for Concentra Group Holdings Parent, Inc. Earnings Conference Call to discuss the second quarter 2026 results. Speaking today are the company's Chief Executive Officer, Keith Newton; and the company's President and Chief Financial Officer, Matt DeCanio. 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 to 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 the information available to management of Concentra today, and the company assumes no obligation to update these statements as circumstances change. At this time, I will turn the conference call over to Mr. Keith Newton. William Newton: Good morning, and thank you for joining us today. Before we comment on our second quarter results, I would like to share my perspective on the announcement that was made yesterday afternoon in our press release. After more than a decade as Concentra's Chief Executive Officer and a relationship with a company that has spanned over 30 years, I have decided effective November 1 of this year to transition from the CEO role into a new role at Concentra as its Executive Chairman of the Board. At that time, Matt Dicanio, our President and Chief Financial Officer, will become Concentra's President and Chief Executive Officer. Bob Ortenzio, our current Chairman, will continue to serve on our Board as a Director. Many thanks to Bob for his leadership and guidance over the last 11 years, especially over the last couple of years as a public company. Leading this organization and its more than 13,000 colleagues has been the privilege of my career. I cannot be prouder of what we have accomplished together at Concentra. Today, we stand as the clear leader in occupational health, powered by a best-in-class team that remains focused every day on our mission of improving the health of America's workforce. The company has experienced tremendous growth, particularly over the last decade, driven by the dedication and execution of our teams. Together, we have reached significant milestones throughout our journey, including the successful completion of our IPO in 2024. This transition is the result of a multi-year succession plan that we have worked on with our Board of Directors, and there is no better time to turn the role over to Matt. The business is performing exceptionally well. Our strategy is delivering, and Matt has been central to both. Over more than a decade working side by side, he has shaped nearly every dimension of Concentra, leading our de novo and acquisition growth engine and integration efforts, developing and executing strategies that support our operating model, running the IPO process and leading our public company efforts since the IPO. He knows this business, he knows our customers and he knows our people as well as anyone. Importantly, Matt will assume this role supported by one of the most experienced leadership teams in our industry. The members of our executive and senior leadership team across the country have an average tenure with Concentra of approximately 20 years, reflecting a deep understanding of our business, a strong commitment to our culture and a proven ability to execute through changing market environments. As Executive Chairman, I plan to remain actively engaged with the Board, Matt and his executive leadership team, and I have complete confidence that Concentra will continue to prosper in its next chapter in his hands. So with that, I will turn it over to Matt to talk about the quarter where you will see we continue to have great momentum with the business. Matt? Matthew DiCanio: Thank you, Keith. Before turning to the quarter, I would like to say what an honor it is to be selected by the Board of Directors as Concentra's next President and Chief Executive Officer. Keith, on behalf of all of our colleagues, thank you for your leadership. Over the 11 years we've worked together, you've taught me what it means to lead this company, making sure the right people are in place, enabling teams to do what they do best and supporting the culture we have built. And I'm grateful that I'll continue to benefit from your partnership and counsel as Executive Chairman. To our shareholders, my message is simple. This transition reflects continuity. The strategy we've articulated since our IPO, delivering on our strong customer value proposition, expanding access through de novo development and disciplined acquisitions and driving operating leverage across the platform is working, and it will not change on November 1. Just as importantly, I have the privilege of working alongside an exceptional tenured executive and senior leadership team. Their experience, institutional knowledge and commitment to our mission provides tremendous stability and positions us well for our next phase of growth. So with that, let's turn to our second quarter results. Total company revenue was $606 million in Q2 2026 compared to $550.8 million in Q2 of the prior year, representing 10% growth year-over-year. Excluding contributions from the Pivot acquisition in both the current and prior year where applicable, revenue was $589.1 million this quarter, resulting in an 8% increase over the prior year, representing one of our strongest core revenue growth quarters in some time. Total occupational health center patient visits increased 2.6% to an average of more than 56,000 visits per day in the second quarter. Our work comp visits per day increased 3.7% and our employer services visit volume increased 1.8% relative to prior year. As we expected, work comp visit growth rates were lower relative to the first quarter, but visits remained strong and above long-term growth averages. We believe that this reflects both the resilient blue-collar labor market where we generally operate as well as market share gains. Importantly, the growth in visit volume has been nicely distributed across industries and geographies. While it's still a little early to definitively point towards reshoring as a key driver of the recent uptick in visit growth, we are seeing indications of improved activity in the manufacturing and construction sectors. and in particular, some encouraging activities in markets proximate to data center development. With respect to market share, as mentioned last quarter, we are continuing to deploy new tactics and technologies to help us target and efficiently communicate with prospective customers, which we think is having a positive impact. Those efforts, combined with customer satisfaction and retention metrics remaining at or near all-time highs are likely contributing to our market share gains. In sum, there are solid secular tailwinds supporting a growing market in the near and long term, and we are actively investing and utilizing all available levers to increase our share. We'd also like to highlight the acceleration in Employer Services growth this quarter, which we view as an indicator of relatively resilient hiring trends across the economy. On the occupational health center rate front, revenue per visit grew 4.6% during the second quarter relative to prior year. This growth was driven by a 4.9% increase in work comp and a 3.2% increase in Employer Services revenue per visit. We had expected rate bumps in the state of California and Tennessee on March 1 and April 1, respectively, helping drive the increase in the work comp rate. Additionally, we had some mix dynamics at play with higher reimbursement initial injury visits comprising a larger percentage of total work comp visits this quarter. We expect rate growth over the remainder of the year to fall closer to 3%. Adjusted EBITDA was $140.9 million this quarter versus $115 million in the same quarter of the prior year, an increase of 22.5% -- adjusted EBITDA margin increased nearly 240 basis points from 20.9% in Q2 2025 to 23.3% this quarter, reflecting strong rate and volume growth, coupled with good execution and operational efficiencies across the business. Additionally, Q2 2025 included just under $4 million of estimated Nova acquisition-related costs tied to onetime integration activities or expenses that have since been eliminated through synergies, creating an incremental tailwind for year-over-year earnings growth. Both our Pivot and Nova acquisitions continue to perform very well and are ahead of underwriting. Adjusted net income attributable to the company was $66.7 million and adjusted earnings per share was $0.52 for the second quarter of 2026, representing approximately 40% growth over prior year adjusted net income of $47.7 million and adjusted earnings per share of $0.37. Next, to provide a little more detail in our Occupational Health operating segment. Total revenue of $553.5 million this quarter was 7.2% higher than the same quarter of prior year. Work comp specific revenue of $361.2 million this quarter was 8.7% higher than prior year and Employer Services specific revenue of $183.2 million increased 5.1% in Q2 2026 versus prior year. Our Onsite Health clinics operating segment had yet another strong quarter with reported revenue of $38.8 million, a 72.1% increase from the same quarter of the prior year. Excluding the impact from the Pivot acquisition in June of last year, the On-site Health clinics operating segment revenue grew 27.9% year-over-year during this quarter. As mentioned last quarter, we continue to be encouraged by both the realized growth in this business as well as the pipeline of new opportunities that the team is building. While mid- to high 20s organic growth percentage may not be sustainable long term, we see a lot of opportunity here and do expect this segment to continue to grow at a faster clip than the core business. Finally, other businesses, including telemed, our pharmacy operations and other OcHealth-related service businesses generated revenue of $13.7 million in the quarter, a 13.3% increase compared to the same quarter of prior year. Moving on to expenses. Cost of services was $413.9 million or 68.3% of revenue in Q2 2026, an improvement from 70.7% of revenue for the same quarter of the prior year. We continue to do well with our staffing efficiencies, which has precipitated nice flow-through from our visit and rate growth. Additionally, as previously noted, Q2 2025 included onetime expenses related to Nova integration activities and other costs within cost of services that have since been eliminated through synergy realization. Our total general and administrative expenses were $56.7 million or 9.4% of revenue in the quarter compared to 9.6% of revenue in the same quarter of the prior year. Excluding items that are added back for the purposes of calculating adjusted EBITDA, including equity comp expense, onetime Select separation costs and M&A transaction costs, G&A expense was $51.1 million for the quarter or 8.4% of revenue compared to 8.5% of revenue in the same quarter of the prior year. As with cost of services, we had Nova expenses in Q2 2025 that have been synergized, offsetting expected year-over-year increases in personnel and systems-related overhead related to our separation from Select Medical. Now to touch on cash flows. In the quarter, we generated $135.2 million in operating cash flow. This compares to $88.4 million in the second quarter of last year, with the year-over-year increase largely resulting from higher earnings and year-over-year variances and timing associated with payments of current liabilities. Investing activities used $14.2 million of cash in the second quarter and was driven by additional investments in de novo centers, relocations, renovations and maintenance as well as IT investments. On the de novo front, we opened one center near Phoenix in Q2 and subsequent to quarter end, we opened 2 additional centers in Boise and Kansas City. The Boise Center is our first location in Idaho, which represents our 42nd state with an occupational health center, a great milestone for our company. We are still targeting a total of 8 to 10 de novo centers this year and have a nice development pipeline that we expect to potentially support double-digit new sites in 2027 and beyond. We are also continuing to work our bolt-on M&A pipeline and anticipate additional announcements on that front over the remainder of the year. Free cash flow or cash flow from operations less cash flow from investing activity, excluding business combinations, totaled $121 million, an increase from prior year second quarter free cash flow of $63.2 million. This was driven by a combination of higher cash flow from operations and lower capital spend in Q2 2026 relative to Q2 2025. Finally, financing activities during the quarter resulted in net cash outflows of $24.7 million as we repurchased approximately 424,000 shares totaling $11 million and paid $8 million in dividends. At the end of the second quarter, we had approximately $54 million remaining under the original $100 million repurchase program authorized by our Board of Directors. We ended the quarter with a total debt balance of $1.57 billion and a cash balance of $158 million. Our net leverage ratio per our credit agreement at the end of June was just under 3x, down from 3.4x at the end of the first quarter. We made significant headway this quarter on both the numerator with strong free cash flow generation as well as on the denominator given our growth in adjusted EBITDA. We have reached this leverage milestone well ahead of schedule. And absent opportunistic M&A and share repurchases, we'll continue to work towards our long-term leverage target of near 2.5x. One additional note here, we expect the interest rate spread on our Term Loan B to step down 25 basis points to 175 basis points now that we are below 3.25x leverage, meaning that we should see a nice reduction in interest expense going forward. Finally, we are pleased to announce the continuation of our dividend this quarter with Concentra's Board of Directors declaring a cash dividend of $0.0625 per share on August 5, 2026. The dividend will be payable on or about August 28, 2026, to stockholders of record as of the close of business on August 20, 2026. Now I'll turn it back to Keith to close this out with some comments on separation activity as well as our updated guidance. William Newton: Thanks, Matt. I wanted to take a minute to congratulate both the Select Medical and Concentra teams on the great work they have done together to separate the companies for the last 24 months. There are still a few loose ends remaining related to projects that need to be wrapped up, but we are substantially complete with our efforts. We've hired all the new employees that we expect to hire and have largely finalized all process and technology implementations, including the conversion of our ERP system to our own instance in May of this year. Q2 was a big milestone in this regard, and we are pleased to have almost all of this activity behind us, which now allows us to focus our internal resources to work on higher-value projects and initiatives going forward. Our monthly spend on TSA services Select Medical, which at this point is largely immaterial and limited to knowledge transfer will continue to decrease each month and will be entirely eliminated by November when the agreement officially ends. I commend the teams on how they delivered on our plan. It's been impressive to say the least to watch this execution while also seeing our company continue to grow and expand margins despite such a heavy lift and complex process. With respect to our updated guidance, given the continued strength of the business, we are once again raising our 2026 guidance, including the low end of our target revenue range by $50 million, resulting in a new revenue range of $2.325 billion to $2.375 billion. The low end of our target adjusted EBITDA range by $25 million and the high end of our target adjusted EBITDA range by $15 million, resulting in a new adjusted EBITDA range of $485 million to $495 million and then both the low and the high end of our targeted free cash flow range by $5 million, resulting in a new free cash flow range of $220 million to $240 million. Our target CapEx range of $70 million to $80 million remains unchanged. Year-to-date performance has exceeded our initial expectations entering the year, driven by strong visit and rate growth, disciplined expense management, successful execution of our growth initiatives, favorable market tailwinds. We're in a great position to continue this as we look to finish strong in the second half of 2026 and position us for another great year in 2027. This concludes our prepared remarks, and we thank everybody for the time today. I'd like to turn it back over to the operator to open the call for questions. Operator: [Operator Instructions] Your first question for today is from Ann Hynes with Mizuho Securities. Ann Hynes: Congratulations, Matt, on your appointment. So it looks like, obviously, this is a great quarter. You beat consensus estimates by 13%, and you raised guidance by 4%. Maybe what was your -- what was the beat versus your internal expectations? And if you beat by a similar amount to Street consensus, are you just being conservative? Or is there something you're seeing in the market why you wouldn't raise guidance more? And then my second question is, obviously, workers' comp volumes are very strong. Thank you for the detail on the onshoring AI data information. But can you remind us what -- is it 2% to 3% we should assume like long-term growth in workers' visits? And then if this onshoring and data center actually happens, what do you think it could add to long-term growth over time? Matthew DiCanio: Yes, thanks for the note. Appreciate it in the question. So on your first question on guidance. So yes, we've obviously had a really strong start to the year halfway through the year. Q1 and Q2 exceeded our expectations. And we've raised our guidance by more than our beat. So we continue to talk about the second half of the year similar to how we talk about our long-term algorithm, low single-digit visit growth, 3% rate growth. Cost of services, we expect we'll continue to see some improvement. Obviously, Q2 was our best efficiency quarter in quite some time. And G&A, we expect to be roughly flat quarter-over-quarter. So I think there's -- could potentially be a little conservatism in the outlook for the rest of the year. So it's definitely not something we're seeing. We continue to see strong visit growth and obviously had a great rate quarter as well. And with the cost side of the equation working, it's all kind of clicking together. So nothing that we're seeing and obviously raised the EBITDA guide by about $20 million to the midpoint. William Newton: Yes, I was going to add... Relative to the conservatism. We -- as Matt mentioned, so far, we continue to stay pretty consistent with what we have seen and -- but still several months left in the year, a lot of things going on out there and just wanted to make sure that we stuck a stake in the ground that we felt really good about. Matthew DiCanio: Yes. And on your second question, Ann, I think it was around the long-term growth rate expectations for work comp. So we still point to the low single-digit visit growth rate as our expectation over a long period of time. Obviously, the last 3 quarters of last year were in the 3% to 4% range. We had an outsized Q1 at 6.2%, and we're back in the 3% to 4% range this quarter. So it's above our long-term algorithm. And as we noted in the prepared remarks, we are seeing some early signs of the manufacturing and construction reshoring efforts and the data center trend. So if those continue, and we're playing close attention to it, and I think we're positioned well with our geographic footprint to capture any gains there. Operator: Your next question is from Joanna Gajuk with Bank of America. Joanna Gajuk: So actually, in terms of the conservatism in a way for this year and the strength in this quarter, so I understand that the year-over-year comparison, but even when you just look on its own, the Q2 margins were very strong and now your guidance implies EBITDA margins of, call it, 20.9%, right, 20.8% to 9%, so fairly close to 21%. So the question is, how should we think about EBITDA margins going forward? Should we kind of look at this and say, hey, this is the new starting point and you can still grow from there? Because obviously, you will not have any separation costs, right? So there should be, I guess, sort of more of a tailwind in ' 27 versus '26. So help us understand how to think about margins. I know you're not ready maybe to give specific number, but just like philosophically in terms of the biggest tailwinds and headwinds when we think about margins going forward? Matthew DiCanio: Yes, sure. Thanks for the question, Joanna. So keep in mind, Q2 and Q3 are the highest margin quarters. So you got to factor in seasonality when you look at the overall margin profile. But I think you're correct, when you look at the midpoint of our guide, we're anticipating roughly 21% margins this year. And as we've talked about in the past, we've had 4 or 5 years at about 20% and we've taken on public company costs and separation costs. So we do anticipate the margins to move up as we continue to grow visits, have rate increases, execute on our M&A strategy. And I think this quarter, you can really see the visit and rate strength and how that flows through the margin closer to the combined with the efficiencies that we had in the quarter. William Newton: Yes. I would agree. And we had probably the best quarter we've ever had in this company, and it's reflected in this quarter in those numbers. And I think as we look to the future, we feel pretty good about the direction we're heading. And with what Matt said about the margins and where they are right now, we think we can hold the line on those. But again, seasonality will take a little bit of the impact on the second half of the year. Joanna Gajuk: Perfect. And if I may squeeze in a follow-up on something you said -- actually 2 quick ones. So one on the Tennessee increase. I don't -- I couldn't remember whether you told us what it was. I think California was a 5% increase. And then the second one on the pricing, similar driver when you mentioned the mix of injuries visit. So can you tell us what it was and like what drove that? Matthew DiCanio: Yes, sure. So Tennessee went into place on April 1. And I believe that was roughly a 30% increase, depending on the visit type, just that's a blended number. And then your other question on the visit mix. So our work comp rate growth was 4.9%, which was above our expectations. We did have a lighter Q1, if you remember, and we expected California and Tennessee to kick in on March 1 and April 1. And so we did expect a decent increase in the year-over-year rate profile for work comp. Part of that was also -- part of the 4.9% was also driven by visit mix. We had higher initial injuries, which are higher rate per visit. And we also had some year-over-year comparisons to last year where we had 67 Nova centers where we're putting systems in and preparing for the separation or the integration process. So there's a little bit of noise just year-over-year. That's why we expect the work comp visit growth rate to come down a little bit in the next couple of quarters, although the revenue per visit, we expect to be roughly flat quarter-over-quarter going forward. Operator: Your next question for today is from Justin Bowers with Deutsche Bank. Justin Bowers: Matt, congrats on the appointment. And Keith, congratulations on the run. It's been several decades of great architecture here. So I want to talk about the strength in the workers' comp visit, and you are running above trend. But Matt, it doesn't sound like you're talking about a mean reversion anytime soon. It sounds like, if anything, there could be maybe a cyclical upturn with some of the data center activity and maybe you could run above the low single digit over the next year or so contingent upon whether that activity continues. Can you just elaborate or clarify on that? And then I have a follow-up. William Newton: Yes. Justin, this is Keith. Yes, from a workers' comp perspective, we really had a strong year, probably one of the best years we've seen in 20 years so far. And we continue to see strength in those visits as we go forward. And a lot of it is what we've seen in the manufacturing and construction area. And that's evidenced with some of the things we're seeing on the employer services side as far as growth in those visits also, which ultimately would yield to the comp visits. So we -- which will actually yield to future comp visits. So we feel pretty good about what we're seeing. We think a lot of that is just a result of some of the dynamics that are happening and the tailwinds in the industry, combined with the market share gains and the things we've done internally over the last few years with technologies to get better at identifying potential customers and also retaining those customers. We've got much higher retention rates at this point in time from a company perspective than we historically have had from a customer perspective with some of the technologies we put into place to make use of our facilities a much easier process for them. So a lot of different levers we've been pulling that I think we're seeing the fruits of the labor pay off at this point in time. Justin Bowers: And just one follow-up on that. It is clear that like you're taking market share out there. And one of the thoughts was how much runway is there even within the Fortune 500? Is there still opportunity to continue to consolidate that market? And then as you look beyond there, how much opportunity is there below that in that SMID cohort? William Newton: Well I think there's a lot of white space for us. We've done some analyses recently just looking at pin on the map, where we could be, what's out there. And it's a nice runway for us relative to that. And as far as continuing to penetrate deeper into existing customers. It seems every time we continue to add pins on the map, what that does, it makes it easier for those larger customers to use us more as far as more sites, and we've seen some transition as far as that. The large Fortune 500 companies, they drive visits to us. But as you know, we've got over 200,000 small customers out there, which drive a large majority of visits to us. So we continue to prospect those, identify them through technologies and continue to penetrate the market. And I think just with the stickiness we've done with technologies within our centers, providing information to the employer decision-makers on a quicker basis than others, upgrading the level of service, the patients you're experiencing, all those levers are what's yielding the results that we're seeing within the bricks and mortar right now. Operator: Your next question is from Stephen Baxter with Wells Fargo. Stephen Baxter: I wanted to follow up on one of the Q2 drivers that you called out. I think you mentioned that within the workers' comp business, there was some favorability from mix related to higher, I guess, new first injury and assessment visits. Can you maybe help us understand why you think that's occurring? And then as you look back across the company's history, when this tends to occur, does it tend to be more transitory in nature? I guess I'm wondering why this wouldn't be something you think might not be a durable trend as you move into the back half. Matthew DiCanio: Yes, sure, Stephen. So thanks for the question. Yes, initial injuries, we had one of our strongest quarters in quite some time. That number can fluctuate over a period of time. But I'd point back to a lot of what Keith was just going through about market share gains, a lot of the things that we're working on from a sales and marketing standpoint, technologies we put in place to make sure we're in front of customers and also all the great work that our teams are doing at the center level with the operating KPI metrics that we track are at all-time highs. And so the patient experience, the customer experience, is driving a higher retention percentage right now, which is already at a high level. But I think it's a combination of higher retention and overall market share gains and also some of the macro backdrop that we see. So hard to predict that number going forward into the future. But what we've seen over our history is it does fluctuate, but we like what we're seeing right now. Stephen Baxter: Got it. Okay. That's great. And then just with the progress that you've made on leverage, I guess, how should we think -- how should we be thinking about the deal pipeline, how do we think about the balance between what might interest you in kind of the core occupational health business or some of your other opportunities? And any thoughts generally kind of on the size of assets and how that might compare to some of the things you've done more recently? William Newton: Yes, I'll take that one. We've got a strong deal pipeline at this point in time, both from a bricks and mortar and an on-site perspective, prospecting them all, moving them all along the pathway. As far as anything the size of Nova, that's not going to happen. But several nice midsized ones that we think can get across the goal line in the coming months. And we don't think it will really impact our leverage at all. In fact, based on the cash flow over the next months and what's in the deal pipeline, we think we're going to be able to manage that very well and continue to handle the leverage and continue to bring that down. So we feel good about what's in the pipeline. We feel good about how we're going to handle the leverage simultaneous with that and nothing out there that of Nova type size at this point in time. Matthew DiCanio: Yes. And I would just add a couple of points. Obviously, we did some M&A and de novos to start the year, but the back half of the year looks good, especially from a de novo standpoint. And also, we're incredibly pleased with the leverage getting below 3x. That was a goal of ours by the end of this year. We did it by the second quarter, obviously, because of the strong cash flow and also because of the EBITDA growth. But I think that's a great sign for some investors who target leverage ratios below that number. Stephen Baxter: Congrats to both of you on the new roles. Operator: Your next question is from Scott Fidel with Goldman Sachs. Scott Fidel: Glad I was able to get on the earnings call and time for the transition announcement today. So congratulations to both of you. And I wanted to just ask in that same context, Matt, maybe if you just wanted to take a moment to just talk about any particular areas of the strategy or operations that you expect to lean into a little bit more in terms of where your focus is? I'm assuming it's going to be very consistent in terms of the strategy and the operations and with still as Executive Chairman. But just curious if from the capital deployment perspective or priorities on operations or strategy, if anything that you think you see yourself maybe focusing in on even more or conversely a little bit less? Matthew DiCanio: Sure. Yes. No, Scott, I think the story is going to stay exactly how it is today. We've got a great strategy in place. It's working. As Keith mentioned in some of his remarks, focusing on providing great clinical outcomes and care at the center level, great patient experience, great customer experience. We're going to continue to focus on technologies to make it easier to do business with us, and we've got a great growth strategy from an inorganic standpoint. So no, there's no plans to change anything. We really like where we're at. And -- we just need to continue to execute what we're doing. William Newton: I was going to add to that. We've got a -- as we mentioned in the several times that we've got a very tenured executive team. The executive team itself is well over 20 years average experience here at Concentra. And then you take the next 50 to 75 people below that from a senior management team, and it's probably close to 20 years also. So we've got a great foundation built here, a great culture. It's a -- it's a very collaborative decision-making process. It's not just Matt and I making the decisions and pushing them down. It's bought in by all of those individuals that I just spoke of. A lot of smart people weighing in on the decisions and the strategies and executing on them. And so we've got a tremendous recipe here that we've been working on for a long time, and we'll continue to execute on that recipe. Scott Fidel: Okay. Great. And for my follow-up, I'm going to ask a 2-parter, I guess, not entirely related, but still do it anyway. First part, just around the free cash flow, which was very strong there, sort of close to doubling year-over-year and did reflect those EBITDA margins getting to sort of higher levels and then the lower CapEx. Can you maybe just talk about the sustainability of the free cash flow or what type of sort of level you think is more sustainable and sort of implied in the back half and sort of how we should be thinking about that? And then the other part was just on the industrial injuries. Just interested if -- just around the whole theme of sort of the new construction and activity around sort of the AI infrastructure hyper scaling and the opportunities that are there. Are you seeing any evidence yet of the -- I know you talked about sort of seeing some emerging indicators there. But just curious around like the industrial industry injuries themselves. Are you seeing any sort of impact from that? Or is it still too early to really see that in terms of your mix? Matthew DiCanio: Sure. I'll hit the free cash flow first. So approximately $120 million in the quarter, obviously, an incredibly strong quarter. You look at our guide, we bumped it up slightly. There is some timing, as we mentioned, as it relates to the cash flow. So we had some current liabilities that impacted timing from a favorable perspective. And also, our CapEx was slightly lower in the front half of the year. So we'll have -- we have some planned CapEx, especially related to de novos and some of our other IT investments in the back half of the year. So sometimes from a quarter-to-quarter perspective, there is some timing there. But overall, we expect a very strong free cash flow year, well north of $200-plus million. On the second question on the data centers and the injuries, we are seeing some early positive signs we're seeing really closely, close to a lot of the major construction companies across the country. We're seeing some nice growth in Texas, Oklahoma, things like that. I think the Nova acquisition really helped us expand into markets that we weren't in that those markets have some of the data center build happening. So we'll continue to monitor it closely, but we definitely are seeing early signs of it. William Newton: Yes, I was going to add and some of the early signs that we do see, typically, Employer Services is a leading indicator that ultimately yields or comp and definitely in the construction and manufacturing area, we've seen our Employer Services tweaking up at a better rate than potentially some of the other industries out there. So it's anecdotal whether that's a result of the data centers, but we think that because of that, the construction activity and some of the things that may be coming down the pipeline that, that could be happening. Operator: Your next question for today is from Benjamin Rossi with JPMorgan. Benjamin Rossi: Regarding expense trends during 2Q, cost of services improved nicely quarter-over-quarter on a per visit basis despite volumes picking up. What specific operating levers are driving center level efficiency? And then how are you thinking about primary expense trends for the remainder of the year? And what assumptions are embedded in your guidance raise? William Newton: I can talk about some of the operating levers within the bricks and mortar. Personnel, labor is by far our largest cost. And in the past, we've been asked quite often how we manage that relative to what some of the other health care entities have been seeing. And our business is a little different than the others. We didn't have the RNs. We didn't feel a lot of the pressures that others felt. And so we've been able to manage the per FTE cost. In addition to that, as far as the number of FTEs within the centers, we continue to get more efficient with patient visits per FTE within the practices. And a lot of that has to do with the technologies that we put into place to try to eliminate the inefficient work that any of them are doing, and we continue to see that tweak up and leverage that cost as a result. So our individuals, our people, our colleagues within the centers are able to see more patients on a per person basis than what they've done in the past purely because of some of those technologies and the elimination of a lot of nonclinical activities that take place within the practices. So that's how we're really leveraging that cost within the bricks and mortar. I don't know if you want to add any. Matthew DiCanio: Yes. I'll just add a little bit to what Keith said, Ben, to your question. On a rolling TTM basis, our cost of services as a percentage of revenue has come down pretty much every single quarter since the IPO, and it really speaks to what the teams are doing out there across the country, as Keith mentioned. Also, obviously, we had strong revenue growth this quarter, which helps that metric. And we also noted -- when you look at the year-over-year comparison, we noted that last year in 2025, this quarter, we were preparing and beginning our Nova integration efforts. And we also had some costs at the cost of services line that has since been synergized. And those are not -- those are not center level costs, but cost to support the centers. So hopefully, some of those comments help. Benjamin Rossi: Yes. Great. And just thinking about employer services during the second quarter. Volume stepped up there pretty nicely for that segment on a sequential basis. Between your lower dollar drug screens versus some of the higher dollar physicals, what was the service line mix in 2Q for Employer Services? And then what does guidance anticipate for shifts in mix during the back half of the year? Matthew DiCanio: Yes. So we saw 1.8% overall Employer Services growth. We don't really get into the breakdown of drug screens fiscals. But as far as the back half of the year, we're anticipating low single-digit visit growth for the -- implied in our guidance for Employer Services. So -- but as Keith mentioned, we're seeing positive signs there. It is a nice indicator of future economic activity. And so we like what we're seeing there. Operator: Your next question for today is from Jared Haase with William Blair. Jared Haase: I'll echo the congrats to Matt and Keith to you both on the new roles here. Maybe I wanted to ask about the Onsite business. You had another really strong growth quarter on an organic basis. Can you just take a step back and give us an update on sort of the pipeline, deal flow, how you feel like the offering is positioned here with the broader services that you have now with the advanced primary care capability? And I'm also curious, I mean, clearly, it seems like you must be taking market share here. But just are you seeing a little bit of demand acceleration here? I'm just thinking about all the pressures that employers are facing from a cost trend perspective. Is that playing out at all? Or do you feel like this is truly just share gains for your business? William Newton: No, we definitely feel there's increasing demand for these services. Our sales pipeline is as robust as it's ever been. The Pivot combination with our core Onsites really helped us leverage a lot of things and relationships. We've been able to expand with existing customers, both on both sides that were common customers. So you do that without having to go out for an RFP. So we continue to grow what our core business has been. The transaction with Pivot has helped us out a lot as far as the visibility and getting bigger and leveraging that platform. And then you combine that with added traction and momentum that we're starting to gain with our advanced primary care services with the implementation of Epic, it's really put us on the map and the relationships that we're developing with the broker community out there where historically, we did not have those relationships because we didn't need them on the occupational health care side. Those are starting to foster, and we're winning -- starting to win those RFPs. So I don't know if you want to. Matthew DiCanio: Yes. I just want to also give our team a big kudos, obviously, 20-plus percent organic growth, but also the execution on the Pivot transaction was flawless. The 2 leadership teams came together and are working together so well, brought a lot of talent over from the Pivot acquisition. But -- and our core leadership team is strong. The sales and marketing efforts are going really well. Just execution across the board in that segment is going incredibly well. Jared Haase: That's great to hear. And then maybe just for the follow-up. So I just wanted to clarify, when we think about your de novo expectations, and I think your full year target sort of implies a bit of an uptick in the back half of the year. To what extent is there any sort of incremental volume lift associated with those de novos in 2026 guidance? And when I think about how quickly they can ramp, is there any potential upside from the 2026 cohort? And then I guess sticking with the de novo threat, I'd love to hear a little bit about just your pipeline and opportunities that you have earmarked both for 2027 and then maybe starting to think about even 2028 at this point? Matthew DiCanio: Yes. So the way to think about de novos, we're targeting 8 to 10 this year. We're targeting double digit next year. We have a funnel of 30 to 40 different sites that we're looking at and just prioritizing across the country. As far as the contribution, we've been doing them for a long time. They start out at 0, obviously. They do ramp quickly. Really excited about some recent improvements we've made from a sales and marketing standpoint, even though historically, we've done such a great job ramping quickly. Their contribution from a visit standpoint is minimal, so less than 1% overall. So the strategy is working. And again, we -- as Keith mentioned earlier in the call, we have a lot of white space out there to add a decent bit of these over the next 5, 10, 15-plus years. William Newton: Yes, I was going to add the first 6 to 12 months from a de novo perspective, it's really not much contribution at all. You're going to start out with some cash flow losses that breakeven and start to go positive. But the net-net of everything, we really don't see much until we get into the 12 to 24 months and start to really ramp up. So the hope would be what we're doing in '26 really benefits us more in '27 and '28. There really no benefit either way or drag per se in 2026. Operator: [Operator Instructions] Your next question for today is from Ben Hendrix with RBC Capital Markets. Benjamin Hendrix: Just was hoping you could give us a quick update on the state regulatory and rate horizon now we have California and Tennessee updates. Just what kind of is next in terms of the outlook? Is there anything catalytic on the horizon you're waiting for or anything that we should be aware of from the rate perspective going forward? William Newton: No. I think as it relates to 2026, we're -- nothing is really on the horizon for the remainder of the year. It's just kind of digesting what has happened at this time. And it's still really a little too early to know what's going to transpire completely in 2027. We'll know more as we get into the latter part of Q3, early part of Q4. But the indications and the things that we do see for next year, what we can see, it seems it will be a nice year for us as far as we know at this point in time, and there's nothing of concern at all at this point in time. And we should see hopefully something similar to what we've seen in the past years. Benjamin Hendrix: Great. And just I apologize if I missed this, but now with leverage down at your target level, I just wanted to see if you guys are setting a new kind of intermediate-term target. Are we taking it down another half a turn? Would that be optimal? Or do you think we'll maintain at 3? Just wanted to get your thoughts on kind of where that target goes now. Matthew DiCanio: Yes. No, our goal is to get it down optimal from our standpoint is, call it, in the range of 2.5x. And we're going to continue to prioritize M&A, de novos. We did the share repurchases in the quarter. We have the dividend in place that the Board approved again this quarter. So we're going to stick with the strategy and the leverage we expect will continue to come down. Operator: We have reached the end of the question-and-answer session and conference call. You may disconnect your lines at this time. Thank you for your participation. Before you buy stock in Concentra Group Parent, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Concentra Group Parent wasn’t one of them. The 10 stocks that made the cut are built for long-term growth and could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $400,209!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,375,393!* That performance is why people listen. With a track record of beating the S&P 500 by 4x, Stock Advisor offers a distinct advantage. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built for the long haul. See the 10 stocks » *Stock Advisor returns as of August 13, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Concentra (CON) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

Find your next quality investment with Simply Wall St's easy and powerful screener, trusted by over 7 million individual investors worldwide. Concentra Group Holdings Parent (CON) has given investors a cluster of fresh information in August 2026, including second quarter earnings, new full year guidance, a dividend declaration, leadership changes, and updated buyback activity. See our latest analysis for Concentra Group Holdings Parent. Concentra Group Holdings Parent’s recent earnings beat, raised full year guidance, upcoming conference appearances and planned CEO transition have come against a backdrop of strong share price momentum. The company has reported a 90 day share price return of 27.68%, a year to date share price return of 70.17% and a 1 year total shareholder return of 49.08% from a latest share price of $33.03, which points to expectations that growth potential and risks are being reassessed more positively. If this kind of move has your attention, it can be useful to see what else is gaining traction in healthcare. Take a look at our screener of 43 healthcare AI stocks After a 52 week high and strong recent gains, the question for Concentra Group Holdings Parent is where fair value really sits between a US$33.03 share price and a wide set of analyst and intrinsic estimates. Concentra Group Holdings Parent’s most followed valuation narrative points to a fair value of $37.13 per share versus the last close of $33.03. This frames the current debate around how much of its growth and margin story is already reflected in the price. Read the complete narrative. Curious what sits behind that $37.13 fair value for Concentra Group Holdings Parent. The narrative rests on steady revenue expansion, higher margins, and a richer future profit multiple. Want to see which specific growth and profitability assumptions have to line up for that outcome. Result: Fair Value of $37.13 (UNDERVALUED) Have a read of the narrative in full and understand what's behind the forecasts. However, Concentra Group Holdings Parent still faces pressure from high leverage and execution risk on acquisitions and digital investments, which could limit margins and earnings progress. Find out about the key risks to this Concentra Group Holdings Parent narrative. The first narrative leans on future earnings and a fair value of $37.13, yet the market is also signalling something through Concentra Group Holdings Parent’s current P/E of 21.6x. That figure sits just above peer averages of 21.2x and just below a fair ratio of 22.4x, which suggests only a narrow margin for missteps. With a stock that screens as both slightly expensive versus peers and cheap versus its own fair ratio, how comfortable are you with that trade off? See what the numbers say about this price — find out in our valuation breakdown. If the mixed signals around Concentra Group Holdings Parent have you thinking, this is a good moment to review the full picture and move quickly. To weigh the upside against the downside on your own terms, start with the 3 key rewards and 2 important warning signs. If Concentra Group Holdings Parent has sharpened your focus, do not stop here. The right screener shortens the path to your next well researched idea. Target potential mispricing by checking companies that stand out on fundamentals using the 49 high quality undervalued stocks. Strengthen your income stream by reviewing companies in the 8 dividend fortresses and see which payouts align with your goals. Prioritise resilience by scanning the 85 resilient stocks with low risk scores and focus on businesses with steadier risk profiles. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include CON. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Interested in Concentra Group Holdings Parent, Inc.? Here are five stocks we like better. Strong Q2 performance: Revenue rose 10% to $606 million, while adjusted EBITDA increased 22.5% to $140.9 million and adjusted EPS climbed to $0.52 from $0.37. Growth was supported by higher patient visits, pricing gains, staffing efficiencies and synergies. 2026 outlook raised: Concentra now expects revenue of $2.325 billion–$2.375 billion, adjusted EBITDA of $485 million–$495 million and free cash flow of $220 million–$240 million. Net leverage fell below 3 times, and the company continues to target eight to 10 new centers this year. Leadership transition planned: CEO Keith Newton will become executive chairman on Nov. 1, while President and CFO Matt DiCanio will become president and CEO as part of a multiyear succession plan. Management said the company’s strategy and priorities will remain unchanged. Concentra Group Holdings Parent (NYSE:CON) reported higher second-quarter revenue, earnings and cash flow, while also announcing that Chief Executive Officer Keith Newton will transition to Executive Chairman on Nov. 1 and President and Chief Financial Officer Matt DiCanio will become President and CEO. Newton, who has served as CEO for more than a decade and has had a relationship with Concentra spanning more than 30 years, said the change followed a multiyear succession plan developed with the board. Robert Ortenzio will remain a director after stepping down from the chairman role. → Meta’s Earnings Drop Shows Wall Street Wants More Than Ad Growth “This transition is the result of a multi-year succession plan that we have worked on with our board of directors,” Newton said. He said DiCanio had played a central role in the company’s de novo development, acquisitions, integration efforts, initial public offering process and public-company operations. DiCanio told shareholders the leadership change represents continuity, saying the company’s strategy of serving customers, expanding through new centers and acquisitions, and pursuing operating leverage “will not change on November 1st.” → 4 Oil and Gas ETF Plays as Prices Stay Sky-High Concentra reported total revenue of $606 million for the second quarter of 2026, up 10% from $550.8 million in the prior-year quarter. Excluding contributions from the Pivot acquisition where applicable, revenue was $589.1 million, representing 8% year-over-year growth. Adjusted EBITDA rose 22.5% to $140.9 million from $115 million a year earlier. Adjusted EBITDA margin increased to 23.3% from 20.9%, which management attributed to volume and rate growth, staffing efficiencies and operating execution. The prior-year quarter also included nearly $4 million of estimated Nova acquisition-related integration costs that have since been eliminated through synergies. → Sandisk Just Delivered a Blowout Quarter—Here's Why the Stock Is Falling Adjusted net income attributable to the company was $66.7 million, compared with $47.7 million in the prior-year period. Adjusted earnings per share increased to $0.52 from $0.37. Occupational health segment revenue increased 7.2% to $553.5 million. Workers’ compensation revenue rose 8.7% to $361.2 million. Employer services revenue increased 5.1% to $183.2 million. Onsite Health Clinics revenue climbed 72.1% to $38.8 million; excluding Pivot, the segment grew 27.9%. Other businesses, including telemedicine, pharmacy operations and related services, generated $13.7 million of revenue, up 13.3%. Average daily patient visits at occupational health centers increased 2.6% to more than 56,000. Workers’ compensation visits per day rose 3.7%, while employer services visits increased 1.8%. Management said workers’ compensation visit growth moderated from the first quarter but remained above long-term averages. DiCanio cited a resilient blue-collar labor market, market-share gains and early signs of activity in manufacturing and construction, including in markets near data-center developments. The company said its customer satisfaction and retention measures remained at or near all-time highs. Newton said technology investments have helped Concentra identify prospective customers, retain existing accounts and make its facilities easier for customers to use. Revenue per occupational health center visit increased 4.6% year over year, including a 4.9% rise in workers’ compensation revenue per visit and a 3.2% increase in employer services revenue per visit. The workers’ compensation rate performance reflected rate increases in California and Tennessee, as well as a higher proportion of initial injury visits, which carry higher reimbursement rates. Management expects overall rate growth for the remainder of 2026 to be closer to 3%. During the question-and-answer session, DiCanio said Tennessee’s rate increase, effective April 1, was roughly 30% on a blended basis depending on visit type. He also said management continues to view low-single-digit visit growth as the company’s long-term expectation, though it is monitoring construction, manufacturing and data-center activity. Cost of services was 68.3% of revenue, improving from 70.7% in the prior-year period. Newton said labor is the company’s largest cost and that technology has helped employees handle more patient visits per full-time equivalent by reducing nonclinical work. General and administrative expense was 9.4% of revenue, compared with 9.6% a year earlier. Excluding certain adjusted EBITDA add-backs, G&A expense was 8.4% of revenue, versus 8.5% in the prior-year quarter. Operating cash flow totaled $135.2 million, compared with $88.4 million a year earlier, while free cash flow reached $121 million, up from $63.2 million. The increase reflected higher earnings, timing of current-liability payments and lower capital spending compared with the prior-year quarter. Concentra used $14.2 million for investing activities, including investments in new centers, relocations, renovations, maintenance and information technology. The company opened one de novo center near Phoenix during the quarter and subsequently opened centers in Boise, Idaho, and Kansas City. The Boise location marked Concentra’s first occupational health center in Idaho and its presence in a 42nd state. Management continues to target eight to 10 de novo openings in 2026 and said its development pipeline could support double-digit openings in 2027 and beyond. It also said it expects additional bolt-on acquisition announcements during the remainder of the year, though Newton said the company does not anticipate another transaction comparable in size to Nova. The company repurchased about 424,000 shares for $11 million and paid $8 million in dividends during the quarter. It had approximately $54 million remaining under its original $100 million repurchase authorization. Total debt was $1.57 billion and cash was $158 million at quarter-end. Concentra’s net leverage ratio declined to just under 3 times from 3.4 times at the end of the first quarter. Management said it reached the milestone ahead of schedule and continues to target leverage near 2.5 times, absent opportunistic acquisitions or share repurchases. The lower leverage level is also expected to reduce the interest-rate spread on its term loan by 25 basis points. Management raised its full-year 2026 outlook, citing strong visit and rate growth, expense discipline, growth initiatives and favorable market conditions. The company now expects: Revenue of $2.325 billion to $2.375 billion. Adjusted EBITDA of $485 million to $495 million. Free cash flow of $220 million to $240 million. Capital expenditures of $70 million to $80 million, unchanged from prior guidance. Newton said Concentra is substantially complete with its separation from Select Medical. The company has completed most employee hiring, process and technology work, including conversion to its own ERP system in May. Transition-services spending is expected to continue declining and be eliminated when the agreement ends in November. The board also declared a quarterly cash dividend of $0.0625 per share on Aug. 5, payable on or about Aug. 28 to shareholders of record as of Aug. 20. Concentra Group Holdings Parent (NYSE:CON) is a Canada-based financial services holding company that specializes in serving Canadian credit unions and their members. Through its operating subsidiaries, the group provides wholesale funding, lending solutions and investment management services tailored to the unique needs of cooperative financial institutions. Concentra’s broad suite of offerings includes trust and custody services, mortgage investment products and equipment financing, all designed to support credit-union growth and stability. In addition to wholesale funding and lending, Concentra Group Holdings Parent distributes life and general insurance products through affiliated insurance brokers and credit-union channels. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Concentra Group Holdings Parent Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Performance was driven by strong core revenue growth of 8% excluding acquisitions, which management characterized as one of the strongest core quarters in recent history. Work comp visit growth of 3.7% reflected a resilient blue-collar labor market and early indications of manufacturing and construction activity related to reshoring and data center development. Management attributed market share gains to new digital targeting tactics and customer retention metrics that remain at or near all-time highs. Operating leverage improved significantly, with adjusted EBITDA margins expanding 240 basis points due to staffing efficiencies and the elimination of integration costs from previous acquisitions. The On-site Health segment saw 27.9% organic growth, fueled by a robust sales pipeline and the successful integration of the Pivot acquisition. Management noted that the separation from Select Medical is substantially complete, allowing internal resources to pivot from administrative transition tasks to higher-value strategic initiatives. Updated 2026 guidance assumes a return to the long-term algorithm of low single-digit visit growth and approximately 3% rate growth for the remainder of the year. The company is targeting 8 to 10 de novo centers in 2026 and expects a development pipeline that could support double-digit new sites annually starting in 2027. Management expects interest expense to decrease following a 25 basis point step-down in the Term Loan B spread, triggered by achieving a leverage ratio below 3.25x. The long-term leverage target has been set at approximately 2.5x, with excess cash flow prioritized for M&A, de novos, and opportunistic share repurchases. Guidance for the second half of the year incorporates typical seasonality, as the second and third quarters are historically the highest margin periods. CEO Keith Newton will transition to Executive Chairman on November 1, 2026, with current CFO Matt DiCanio succeeding him as President and CEO. The company reached its leverage milestone well ahead of schedule, ending the quarter at a net leverage ratio of just under 3x compared to 3.4x in the prior quarter. The ERP system conversion was successfully completed in May 2026., marking a critical milestone in the company's independence from its former parent. A 30% blended rate increase in Tennessee effective April 1 contributed to the outsized revenue per visit growth during the quarter. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management indicated that while Q2 and Q3 are seasonally stronger, they believe they can 'hold the line' on current margin levels as separation costs fall away. The 21% margin implied by the new guidance is viewed as a sustainable floor that can grow through continued visit volume and M&A execution. Management is seeing early positive signs in manufacturing and construction sectors, particularly in markets like Texas and Oklahoma proximate to data center builds. Employer Services volume is acting as a leading indicator for future workers' comp visits in these specific industrial sectors. The current pipeline includes several 'midsized' opportunities in both bricks-and-mortar and on-site clinics, though management does not anticipate any deals as large as the previous Nova acquisition. Acquisition activity is expected to be funded through cash flow without negatively impacting the downward leverage trajectory. The 4.9% increase in work comp rate was driven by state-mandated increases in California and Tennessee, alongside a favorable mix of higher-reimbursement initial injury visits. Management expects revenue per visit to remain roughly flat on a sequential basis for the rest of the year.

This article first appeared on GuruFocus. Total Revenue: $606 million in Q2 2026, a 10% increase year-over-year from $550.8 million. Core Revenue Growth: Excluding Pivot acquisition, revenue was $589.1 million, an 8% increase over the prior year. Occupational Health Segment Revenue: $553.5 million, up 7.2% year-over-year. Work Comp Revenue: $361.2 million, an 8.7% increase from the prior year. Employer Services Revenue: $183.2 million, up 5.1% year-over-year. Onsite Health Clinics Revenue: $38.8 million, a 72.1% increase; excluding Pivot acquisition, organic growth was 27.9%. Other Businesses Revenue: $13.7 million, a 13.3% increase year-over-year. Revenue per Visit: Increased 4.6% year-over-year, driven by a 4.9% rise in work comp and a 3.2% increase in employer services. Patient Visits: Total occupational health center visits increased 2.6% to over 56,000 per day; work comp visits up 3.7% and employer services visits up 1.8%. Adjusted EBITDA: $140.9 million, up 22.5% from $115 million in Q2 2025. Adjusted EBITDA Margin: Expanded to 23.3% from 20.9% in the prior year quarter. Adjusted Net Income: $66.7 million, up approximately 40% from $47.7 million in Q2 2025. Adjusted EPS: $0.52, compared to $0.37 in the prior year quarter. Cost of Services: $413.9 million, or 68.3% of revenue, improved from 70.7% of revenue in Q2 2025. General and Administrative Expenses: $56.7 million, or 9.4% of revenue; adjusted G&A was $51.1 million, or 8.4% of revenue. Operating Cash Flow: $135.2 million, up from $88.4 million in Q2 2025. Free Cash Flow: $121 million, up from $63.2 million in the prior year quarter. Capital Expenditures: $14.2 million used in investing activities for de novo centers, relocations, renovations, and IT investments. Share Repurchases: Repurchased approximately 424,000 shares for $11 million; $54 million remaining under the repurchase program. Dividend: Declared a cash dividend of $0.0625 per share, payable August 28, 2026. Debt and Leverage: Total debt of $1.57 billion, cash of $158 million; net leverage ratio just under 3.0 times, down from 3.4 times at Q1 end. 2026 Guidance: Raised revenue range to $2.325 billion-$2.375 billion; adjusted EBITDA range to $485 million-$495 million; free cash flow range to $220 million-$240 million; CapEx range unchanged at $70 million-$80 million. Warning! GuruFocus has detected 8 Warning Sign with CON. Is CON fairly valued? Test your thesis with our free DCF calculator. Release Date: August 07, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Total company revenue grew 10% year-over-year to $606 million, with core revenue up 8% excluding acquisitions. Adjusted EBITDA increased 22.5% to $140.9 million, with margin expanding nearly 240 basis points to 23.3%. Workers' compensation visit volume grew 3.7% and employer services visits increased 1.8%, indicating strong demand. Onsite health clinics segment revenue surged 72.1% (27.9% organic), driven by strong pipeline and Pivot acquisition integration. Net leverage ratio improved to under 3.0x, ahead of schedule, triggering a 25 basis point reduction in interest rate spread. Company raised full-year 2026 guidance for revenue, adjusted EBITDA, and free cash flow due to strong performance. Leadership transition plan is in place with Matt DiCanio set to become CEO, ensuring continuity and stability. De novo expansion continues with new centers in Idaho and Kansas City, targeting 8-10 new sites in 2026 and double-digit in 2027. Free cash flow nearly doubled to $121 million in Q2, driven by higher earnings and lower capital expenditures. Separation from Select Medical is substantially complete, reducing ongoing costs and allowing focus on higher-value initiatives. Workers' compensation visit growth rate moderated to 3.7% from 6.2% in Q1, indicating potential normalization. Revenue per visit growth is expected to slow to around 3% for the remainder of the year, down from 4.6% in Q2. The company faces ongoing costs related to the separation from Select Medical, though these are diminishing. De novo centers contribute minimal revenue in the first 12-24 months, providing little near-term benefit. The company's guidance implies a potential slowdown in EBITDA margins in the second half due to seasonality. M&A pipeline is limited to mid-sized bolt-on acquisitions, with no large-scale deals like Nova expected. The company's reliance on state regulatory rate increases (e.g., California, Tennessee) creates uncertainty for future pricing. Employer services growth, while improved, remains below pre-pandemic levels, indicating potential economic headwinds. The company's leverage reduction was aided by timing of payments, which may not be sustainable in future quarters. The transition in CEO role, while planned, introduces execution risk during a period of strategic growth. Q: The company beat consensus estimates by 13% and raised guidance by 4%. What was the beat versus internal expectations, and why not raise guidance more? Also, what is the long-term growth rate assumption for workers' comp visits, and what could onshoring and data center activity add to that growth?A: Matt DiCanio (CFO) stated that Q1 and Q2 exceeded expectations, and guidance was raised by more than the beat. The second-half outlook assumes low single-digit visit growth and 3% rate growth, with potential for conservatism. Keith Newton (CEO) added that while the business is strong, there are still several months left in the year. Regarding work comp, the long-term algorithm remains low single-digit visit growth, though recent quarters have been in the 3%-4% range. Early signs of manufacturing, construction reshoring, and data center trends are positive, and the company is well-positioned geographically to capture gains. Q: Q2 margins were very strong, but the guidance implies EBITDA margins of roughly 21%. Should this be the new starting point for margins, and what are the biggest tailwinds and headwinds going forward?A: Matt DiCanio (CFO) noted that Q2 and Q3 are the highest margin quarters due to seasonality. The midpoint of guidance anticipates roughly 21% margins for the year, up from about 20% over the past four to five years. As the company grows visits, executes on M&A, and realizes efficiencies, margins are expected to continue moving up. Keith Newton (CEO) added that Q2 was one of the best quarters in company history, and while seasonality will impact the second half, the company feels good about holding the line on margins. Q: Can you elaborate on the strength in workers' comp visits, which are running above trend? Is there potential for a cyclical upturn, and how much runway is there for market share gains within the Fortune 500 and smaller cohorts?A: Keith Newton (CEO) explained that workers' comp has had one of the best years in 20 years, driven by strength in manufacturing and construction, as well as market share gains from new technologies and higher customer retention. There is significant white space for expansion, and as the company adds more locations, it becomes easier for larger customers to use their services. With over 200,000 small customers driving a large majority of visits, the company continues to prospect and penetrate the market through technology and improved service levels. Q: Within the workers' comp business, there was a benefit from higher initial injury visits. Why is this occurring, and is it a durable trend?A: Matt DiCanio (CFO) stated that initial injuries had one of the strongest quarters in quite some time. This is attributed to market share gains, improved sales and marketing technologies, and all-time-high operating KPI metrics at the center level. Higher retention and overall market share gains, combined with a favorable macro backdrop, are driving this trend. While the number can fluctuate historically, the company likes what it is seeing currently. Q: With leverage now below 3 times, how should we think about the deal pipeline and the balance between core occupational health and other opportunities?A: Keith Newton (CEO) stated there is a strong deal pipeline from both bricks-and-mortar and on-site perspectives. While nothing of the size of Nova is expected, several nice mid-sized deals could close in the coming months without impacting leverage. Matt DiCanio (CFO) added that the company is pleased to reach the sub-3 times leverage goal ahead of schedule, and the back half of the year looks good from a de novo standpoint. Q: With the CEO transition, are there any particular areas of strategy or operations that you expect to lean into more?A: Matt DiCanio (CFO) confirmed the strategy will remain exactly as it is today, focusing on clinical outcomes, patient and customer experience, and technology to make it easier to do business. There are no plans to change anything. Keith Newton (CEO) added that the tenured executive team, with an average of over 20 years of experience, provides a strong foundation and collaborative decision-making process that will continue. Q: Free cash flow was very strong, nearly doubling year-over-year. What level is sustainable, and are you seeing any impact from AI infrastructure and hyperscaling on industrial injuries?A: Matt DiCanio (CFO) noted the quarter's free cash flow of approximately $120 million was incredibly strong, but there was some favorable timing in current liabilities and lower CapEx in the front half. The company expects a very strong free cash flow year, well north of $200 million. Regarding data centers, early positive signs are visible in Texas and Oklahoma, and the Nova acquisition expanded the company into markets with data center build activity. Keith Newton (CEO) added that employer services, a leading indicator for work comp, is seeing better growth in construction and manufacturing, which could be related to data center activity. Q: Cost of services improved nicely quarter-over-quarter on a per-visit basis. What specific operating levers are driving center-level efficiency, and what are the expense trends for the remainder of the year?A: Keith Newton (CEO) explained that personnel labor is the largest cost, and the company has managed per-FTE costs well by increasing patient visits per FTE through technology and eliminating non-clinical activities. Matt DiCanio (CFO) added that cost of services as a percentage of revenue has come down nearly every quarter since the IPO, driven by strong revenue growth and the elimination of Nova integration costs that were present in Q2 2025. Q: Can you provide an update on the onsite business, including the pipeline, deal flow, and whether demand is accelerating due to employer cost pressures?A: Keith Newton (CEO) stated there is definitely increasing demand for these services, with the sales pipeline as robust as ever. The Pivot combination has helped leverage relationships with existing customers, and the implementation of Epic has put the company on the map with the broker community, leading to more RFP wins. Matt DiCanio (CFO) added that the execution on the Pivot transaction was flawless, and the sales and marketing efforts are going incredibly well. Q: What is the de novo expectation for the full year, and how quickly can new centers ramp? What does the pipeline look like for 2027 and 2028?A: Matt DiCanio (CFO) stated the company is targeting For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Concentra Group (CON) came out with quarterly earnings of $0.52 per share, beating the Zacks Consensus Estimate of $0.42 per share. This compares to earnings of $0.37 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +23.81%. A quarter ago, it was expected that this provider of occupational health services would post earnings of $0.35 per share when it actually produced earnings of $0.4, delivering a surprise of +14.29%. Over the last four quarters, the company has surpassed consensus EPS estimates four times. Concentra, which belongs to the Zacks Medical Services industry, posted revenues of $606.03 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 2.28%. This compares to year-ago revenues of $550.78 million. The company has topped consensus revenue estimates four times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Concentra shares have added about 56.3% since the beginning of the year versus the S&P 500's gain of 12.8%. While Concentra has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Concentra was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.42 on $602.27 million in revenues for the coming quarter and $1.52 on $2.33 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Medical Services is currently in the top 42% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. One other stock from the same industry, Sonida Senior Living (SNDA), is yet to report results for the quarter ended June 2026. The results are expected to be released on August 10. This operator of senior living communities is expected to post quarterly loss of $0.09 per share in its upcoming report, which represents a year-over-year change of +43.8%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Sonida Senior Living's revenues are expected to be $187.92 million, up 126.5% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Concentra Group Holdings Parent, Inc. (CON) : Free Stock Analysis Report Sonida Senior Living, Inc. (SNDA) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Matt DiCanio to become president and CEO and Keith Newton to transition to executive chairman, effective Nov. 1, 2026 DALLAS, August 06, 2026--(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 the second quarter ended June 30, 2026, declaration of a cash dividend, and raised its full-year 2026 guidance. The quarter included revenue growth of 10.0%, net income attributable to the Company growth of 46.5%, Adjusted EBITDA growth of 22.5% and a net leverage ratio of 2.99x. As part of a multiyear succession process unanimously approved by Concentra’s board of directors (the "Board"), effective as of November 1, 2026, (i) Matt DiCanio, president and chief financial officer, will become Concentra’s president and chief executive officer and serve as a Class III director on the Board, and (ii) Keith Newton will transition from chief executive officer and director to executive chairman of the Board. Additionally, Robert Ortenzio has notified the Board of his intent to resign from the role of chairman of the Board while continuing to serve as a director on the Board, effective as of November 1, 2026. The planned succession is designed to provide leadership continuity and support continued execution of the Company’s strategy. "Leading Concentra and our dedicated colleagues over the last decade has been a tremendous privilege, and I am proud of what we have built together: a leader in occupational health," said Keith Newton. "Our momentum reflects clear priorities and a team committed to delivering results. Matt has been instrumental in shaping that strategy and driving Concentra’s performance, making this the right time to transition leadership." Matt DiCanio added, "Our strong performance reflects the strength of our strategy, our operating model and our people. As CEO, my priorities are to deliver high-quality care, create meaningful value for customers and patients, and pursue disciplined growth. As Concentra approaches its 50th year, our experienced leadership team, operating leverage, and steadfast commitment to our mission position us well for continued growth." Second Quarter 2026 Highlights Revenue of $606.0 million, an increase of 10.0% from $550.8 million in Q2 2025 Net income of $67.3 million, an increase of 45.7% from $46.2 million in Q2 2025 Net income attributable to the Company of $65.3 million, and Adjusted Net Income Attributable to the Company of $66.7 million, an increase of 46.5% and 39.7% over prior year, respectively Earnings per share of $0.51 and Adjusted Earnings per Share of $0.52, an increase of $0.16 and $0.15 over prior year, respectively Adjusted EBITDA of $140.9 million, an increase of 22.5% from $115.0 million in Q2 2025 Patient visits of 3,610,934, or 56,421 visits per day, an increase of 2.6% from 55,005 visits per day in Q2 2025 Revenue per visit of $152.67, an increase of 4.6% from $145.92 in Q2 2025 Net cash provided by operating activities of $135.2 million and Free Cash Flow of $121.0 million, an increase of 53.0% and 91.6% over prior year, respectively Capital expenditures of $15.7 million, a decrease of 37.9% from $25.2 million in Q2 2025 Repurchases of approximately 0.4 million shares of common stock totaling $11.0 million Cash balance of $158.0 million and a net leverage ratio of 2.99x Total occupational health centers of 633, compared to 628 at the end of Q2 2025 Opened one de novo occupational health center Total onsite health clinics of 415, compared to 406 at the end of Q2 2025 The definition of Adjusted EBITDA and a reconciliation of net income to Adjusted EBITDA are presented in table X 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 XI 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 XII of this release. Balance Sheet As of June 30, 2026, our balance sheet reflected cash of $158.0 million, total debt of $1,573.6 million and total assets of $3,010.3 million. Concentra’s net leverage ratio as of June 30, 2026 was 2.99x, which was in compliance with the financial covenant under our credit agreement. Cash Flow Cash flows provided by operating activities in the second quarter ended June 30, 2026 totaled $135.2 million compared to $88.4 million for the same quarter of the prior year. The increase in year-over-year cash flow from operations was primarily due to an increase in net income from organic growth and through acquisitions and de novos, as well as year-over-year variances in timing associated with payments of current liabilities. During the second quarter ended June 30, 2026, cash flow from investing activities resulted in cash used of $14.2 million, including capital expenditures of $15.7 million, partially offset by proceeds from sale of assets of $1.5 million. Concentra had Free Cash Flow of $121.0 million in the second quarter ended June 30, 2026, compared to $63.2 million for the same quarter of the prior year. Cash flow from financing activities used $24.7 million for the quarter, driven primarily by $11.0 million in repurchases of shares of common stock and $8.0 million in dividend payments. This resulted in a net increase in cash of $96.3 million for the quarter. Dividend On August 5, 2026, the Board declared a cash dividend of $0.0625 per share. The dividend will be payable on or about August 28, 2026, to stockholders of record as of the close of business on August 20, 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 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 may deem to be relevant. Leadership Transition As executive chairman, Keith Newton will continue to support strategic initiatives and leadership development, while providing continuity through the transition. Newton has served as Concentra’s chief executive officer for the past decade, helping establish the Company as the nation’s leading provider of occupational health services by number of locations and guiding its transition to an independent publicly traded company. "Keith’s leadership has been instrumental in Concentra’s growth, strong performance, and distinctive culture," said Robert Ortenzio, chairman of the Board. "The Board is grateful for his many contributions as chief executive officer, and we are pleased that Concentra will continue to benefit from his experience and leadership as executive chairman." DiCanio has served as Concentra’s president since 2023 and chief financial officer since 2024. During his 11-year tenure, his responsibilities have spanned clinical functions, operations, sales, marketing, corporate strategy, finance and business development. He has also led multiple business units and major acquisition integrations and played an integral role in Concentra’s transition to a publicly traded company. "Matt has played a pivotal role in shaping Concentra’s strategy, performance, and growth," Ortenzio said. "His extensive knowledge of the business, proven leadership, and commitment to Concentra’s mission and culture make him the right leader to guide the Company as it approaches its 50th year and builds for the future." The Company expects to announce its chief financial officer succession plan prior to the leadership transition taking effect on November 1, 2026. 2026 Business Outlook Concentra raised its financial guidance for 2026. We now expect to deliver the following results: Revenue in the range of $2.325 billion to $2.375 billion Adjusted EBITDA in the range of $485 million to $495 million Net leverage ratio below 3.0x Free Cash Flow in the range of $220 million to $240 million Capital expenditures in the range of $70 million to $80 million A reconciliation of full year 2026 Adjusted EBITDA expectations to net income is presented in table XIII of this release. A reconciliation of full year 2026 Free Cash Flow expectations to net cash provided by operating activities is presented in table XIV 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(1) patients each business day on average across 46 states and the District of Columbia at our 633 occupational health centers, 415 onsite health clinics at employer worksites, and Concentra Telemed as of June 30, 2026. Conference Call Concentra will host a conference call regarding its second quarter financial results and business outlook on Friday, August 7, 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: 888-506-0062International: 973-528-0011Participant 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: The frequency of work-related injuries and illnesses; Adverse changes to our relationships with employer customers, third-party payors, workers’ compensation provider networks or employer services networks; Changes to regulations, new interpretations of existing regulations, or violations of regulations; State fee schedule changes undertaken by state workers’ compensation boards or commissions and other third-party payors; Our ability to realize reimbursement increases at rates sufficient to keep pace with the inflation of our costs; Labor shortages, increased employee turnover or costs, and union activity could significantly increase our operating costs; Our ability to compete effectively with other occupational health centers, onsite health clinics at employer worksites, and healthcare providers; The impacts of any security breaches, cyberattacks, loss of data, or cybersecurity threats or incidents involving our, or our third-party vendors’, information technology systems, and any failure to comply with legal requirements related to data privacy, interoperability or data protection, including those governing the privacy and security of health information or other regulated, sensitive or confidential information; Negative publicity which can result in increased governmental and regulatory scrutiny and possibly adverse regulatory changes; Significant legal actions could subject us to substantial uninsured liabilities; Litigation and other legal and regulatory proceedings in the course of our business that could adversely affect our business and financial statements; Insurance coverage may not be sufficient to cover losses we may incur; Acquisitions may use significant resources, may be unsuccessful, and could expose us to unforeseen liabilities; Our exposure to additional risk due to our reliance on third parties in many aspects of our business; Our ability to manage relationships with managed affiliated professional medical groups ("Managed PCs"); Our facilities are subject to extensive federal and state laws and regulations relating to the privacy of individually identifiable information; Compliance with applicable data interoperability and information blocking rules; Facility licensure requirements in some states are costly and time-consuming, limiting or delaying our operations; Our ability to adequately protect and enforce our intellectual property and other proprietary rights; Adverse economic conditions in the U.S. or globally; Any negative impact on the global economy and capital markets resulting from geopolitical tensions; The impact of impairment of our goodwill and other intangible assets; Our ability to maintain satisfactory credit ratings; The effects of the Separation on our business; The negative impact of public threats such as a global pandemic or widespread outbreak of an infectious disease; The loss of key members of our management team; Our ability to attract and retain talented, highly skilled employees and a diverse workforce, and the succession of our senior management; Climate change, or legal, regulatory or market measures to address climate change; Increasing scrutiny and rapidly evolving expectations from stakeholders regarding ESG matters; and Changes in tax laws or exposures to additional tax liabilities. 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. View source version on businesswire.com: https://www.businesswire.com/news/home/20260806268561/en/ Contacts Investor and media inquiries:Bill ChapmanVice President, Strategy & Investor [email protected]