Concentra Group Holdings Parent, Inc. (NYSE:CON) is among the cheap healthcare stocks to buy heading into 2026. As of December 7, Concentra Group Holdings Parent, Inc. (NYSE:CON) has a “Buy” or equivalent rating from all seven analysts covering the stock. While the target price ranges from $25 to $31, the median price target of $29 implies an upside potential of 48.95% from the current price. After Concentra Group Holdings Parent, Inc. (NYSE:CON) announced its third-quarter results on November 6, several ...

Q3 2025 Performance - Total revenue increased by 170% year-over-year, reaching $5728 million, with a 106% increase excluding the impact of the Nova acquisition[12] - Adjusted EBITDA grew by 171% year-over-year to $1189 million, with a slight increase in Adjusted EBITDA margin to 208%[11, 12] - Workers' Compensation visits per day (VPD) increased by 44% year-over-year, excluding the impact of the Nova acquisition[11] - Employer Services VPD increased by 19% year-over-year[11] - Revenue per visit (RPV) increased by 42% year-over-year to $147[11] YTD 2025 Performance - Total revenue increased by 132% year-over-year, reaching $16243 billion[13] - Adjusted EBITDA increased by 125% year-over-year to $3366 million[13] - Capital expenditures increased by 305% year-over-year to $622 million, including approximately $11 million of one-time transition capex for Nova[13] Financial Position and Guidance - The company is focused on deleveraging, with net leverage lowered to 36x in Q3 2025 and on pace for ≤35x by year-end[11] - The revolving credit facility was completely paid down, with $50 million repaid in Q3 and $35 million repaid in October[11] - Full-year 2025 guidance for revenue was raised to $2145 billion - $2160 billion, and Adjusted EBITDA guidance was raised to $425 million - $430 million[11, 18]

Group 1 - Concentra Group Holdings Parent Inc. (NYSE:CON) is currently viewed as a strong investment opportunity, with JPMorgan analyst Benjamin Rossi assigning an Overweight rating and a price target of $31, citing favorable conditions in the outpatient environment for companies with lower federal funding exposure [1][3] - In Q2 2025, Concentra Group reported a total revenue growth of 15.2% year-over-year, maintaining this growth rate even when excluding contributions from the Nova acquisition, indicating a robust growth strategy through acquisitions and internal development [2][3] - The completion of the acquisition of Pivot On-site Health Clinics has significantly expanded Concentra's on-site health clinic segment, doubling its size to a total of 240 clinics, which is projected to generate approximately $120 million in revenue for 2025 [3] Group 2 - Concentra Group has raised its revenue guidance for 2025 to a range of $2.13 to $2.16 billion, reflecting confidence in its growth trajectory and operational performance [3] - The company provides a range of occupational health services in the US, including workers' compensation, employer and consumer health services, and employer-sponsored primary care services, positioning itself as a key player in the healthcare sector [4]

Financial Data and Key Metrics Changes - Total company revenue for Q2 2025 was $550.8 million, a 15.2% increase year over year from $477.9 million in Q2 2024. Excluding contributions from Nova, revenue was $519.4 million, resulting in an 8.7% increase over the prior year [6][10] - Adjusted EBITDA was $115 million in Q2 2025, compared to $101.6 million in the same quarter prior year, reflecting a 13.2% increase. Adjusted EBITDA margin decreased from 21.3% in Q2 2024 to 20.9% in Q2 2025 [9][20] - Adjusted net income attributable to the company was $47.7 million, with adjusted earnings per share at $0.37 for Q2 2025 [10] Business Line Data and Key Metrics Changes - In the occupational health center segment, total revenue was $516.1 million in Q2 2025, a 14.4% increase year over year. Workers' compensation revenue was $332.2 million, up 15.2% from the prior year [11][12] - Employer services revenue increased to $174.3 million, a 13.7% rise from the prior year, with visits per day increasing by 10.3% [12] - Excluding the impact of Nova, total revenue in the occupational health center segment was $484.8 million, a 7.4% increase year over year [13] Market Data and Key Metrics Changes - Total patient visits increased by 9.5% in Q2 2025, averaging approximately 55,000 visits per day. Workers' compensation visits per day increased by 9.3%, while employer services visits increased by 10.3% [7][8] - Excluding the impact from the acquisition of Nova, total visits per day increased by 2.4% [7] Company Strategy and Development Direction - The company is focused on integrating the Nova and Pivot acquisitions while continuing to expand its de novo site openings, with plans for two to three additional sites by the end of the year [4][25] - The company aims to capture remaining operational and back office synergies from the Nova acquisition, estimating over 70% of planned synergies captured by the end of Q2 [24] - The company is pursuing a strategy of both de novo openings and small bolt-on M&A deals, with a focus on maintaining a leverage ratio below three times by 2026 [26][38] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the stability of visit trends and the broader economy, noting no significant slowdown in hiring trends [30][31] - The company anticipates a strong rate year in 2026, benefiting from state-specific fee schedule adjustments tied to recent legislation [34][36] - Management highlighted the ongoing separation from Select Medical, with significant progress made towards complete separation by November 2026 [36] Other Important Information - The company declared a cash dividend of $6.25 per share, payable on or about August 28, 2025 [28] - The company ended Q2 2025 with a total debt balance of $1.67 billion and a cash balance of $74 million, with a net leverage ratio of 3.8 times [21] Q&A Session Summary Question: Can you walk through the changes to revenue and adjusted EBITDA guidance? - Management indicated that the guidance was raised due to strong performance in revenue and EBITDA, factoring in contributions from recent acquisitions [42][44] Question: What is the updated count of on-site health clinics following the Pivot acquisition? - The updated count is approximately 240 on-site clinics, with no change to the revenue figure previously stated [47][48] Question: What explains the softer trend in Q1 for workers' compensation? - Management noted that various dynamics influenced Q1 performance, but overall, they expect to see low single-digit growth rates over time [51][53] Question: How does the company view the long-term organic growth for employer services? - Management anticipates long-term organic growth in the low single-digit range, around 1% to 2% per year from M&A and de novo efforts [82] Question: How does the company manage labor dynamics? - The company has historically not faced significant labor pressures due to its staffing model, which relies on medical assistants rather than more scarce nursing roles [98]

Q2 2025 Performance Highlights - Concentra's Q2 2025 total revenue increased by 152% year-over-year to $5508 million, with an 87% increase excluding the impact of the Nova acquisition[17] - Adjusted EBITDA for Q2 2025 grew by 132% year-over-year to $1150 million[17] - The number of onsite health clinics significantly increased to 406, a rise of 252 clinics, primarily due to the Pivot Onsite acquisition[17] - Revenue per visit (RPV) increased by 44% year-over-year to $146 in Q2 2025[17] YTD 2025 Performance Highlights - Total revenue for YTD 2025 increased by 112% year-over-year to $10515 billion, or 121% on a per-day basis[18] - Adjusted EBITDA for YTD 2025 increased by 101% year-over-year to $2177 million[18] - The number of occupational health centers increased to 628, a rise of 81 centers, due to the Nova acquisition and other M&A activities[18] - Revenue per visit (RPV) increased by 50% year-over-year to $146 in YTD 2025[18] Guidance and Financial Strategy - The company is raising its FY 2025 revenue guidance to $213 billion-$216 billion and Adjusted EBITDA guidance to $420 million-$430 million[16] - Concentra is targeting a net leverage ratio of less than 30x by the end of 2026[16]

Core Viewpoint - Concentra Group (CON) is anticipated to report a year-over-year decline in earnings despite an increase in revenues for the quarter ended June 2025, with the actual results being a significant factor influencing its near-term stock price [1][2]. Earnings Expectations - The upcoming earnings report is expected to be released on August 7, with a consensus estimate of quarterly earnings at $0.37 per share, reflecting a year-over-year decrease of 24.5%. Revenues are projected to be $536.8 million, which is a 12.3% increase from the previous year [3][2]. Estimate Revisions - Over the last 30 days, the consensus EPS estimate has been revised downwards by 0.47%, indicating a collective reassessment by analysts regarding the company's earnings outlook [4]. Earnings Surprise Prediction - The Zacks Earnings ESP model indicates that the Most Accurate Estimate for Concentra is lower than the Zacks Consensus Estimate, resulting in an Earnings ESP of -7.56%, suggesting a bearish sentiment among analysts [12]. Historical Performance - In the last reported quarter, Concentra was expected to post earnings of $0.31 per share but exceeded expectations with actual earnings of $0.32, resulting in a surprise of +3.23%. Over the past four quarters, the company has beaten consensus EPS estimates three times [13][14]. Investment Considerations - Despite the potential for an earnings beat, Concentra does not currently appear to be a compelling candidate for such an outcome, and investors are advised to consider other factors before making investment decisions [17].

Core Insights - Optima Health plc reported a full year revenue of approximately £105 million, aligning with market expectations, with a 7% growth in H2 2025 compared to H1 2025 [6][10] - The Group's net debt position (excluding leases) as of 31 March 2025 was £2.2 million, with a cash balance of £14.8 million and drawdowns from a revolving credit facility of £17.0 million [6][10] - Optima has made significant operational progress since its AIM listing in September 2024, winning new contracts and making strategic acquisitions to enhance long-term growth [7][10] Strategic Contracts and Acquisitions - In February 2025, Optima was selected as the exclusive medical assessment provider for the UK Ministry of Defence's Armed Forces Recruitment Service, with a contract valued at up to £210 million over an initial 7-year term [8] - The Group acquired Cognate Health Limited for up to €9 million, expected to add approximately €7 million in revenue and €1 million in EBITDA annually [9] - Optima also acquired BHSF Occupational Health Limited for £1.4 million, anticipated to contribute around £7 million in revenue per year, and Care first for a net consideration of £15,000, expected to add approximately £3.7 million in revenue annually [9] Future Outlook - Optima is expected to report its Preliminary Results for the twelve months ended 31 March 2025 by mid-July 2025 [10] - The CEO expressed confidence in the company's ability to capture further market share and enhance its position as the UK's leading occupational health and wellbeing partner [11]

Financial Data and Key Metrics Changes - Revenue for Q1 2025 was $500.8 million, a 7.1% increase from $467.6 million in Q1 2024, representing an 8.9% growth on a revenue per day basis [8][11] - Adjusted EBITDA increased to $102.7 million in Q1 2025 from $96.1 million in Q1 2024, a 6.8% increase, with adjusted EBITDA margin slightly decreasing from 20.6% to 20.5% [8][18] - Net income was $40.6 million, lower than the same quarter last year, primarily due to increased interest expenses and transaction costs related to acquisitions [9][10] Business Line Data and Key Metrics Changes - Total patient visits per day increased by 3.2% year over year to 50,900, with a 0.6% increase to 49,600 when excluding the Nova acquisition [5][11] - Workers' compensation revenue was $302.1 million, an 8% increase year over year, with visits per day up 2.4% [12] - Employer services revenue increased by 6.2% to $160.1 million, with visits per day up 3.9% [13] Market Data and Key Metrics Changes - The company reported strong growth in both workers' compensation and employer services, indicating a positive trend in the occupational health market [6][9] - The acquisition of Nova Medical Centers and other strategic acquisitions are expected to enhance market presence and service offerings [7][22] Company Strategy and Development Direction - The company is focused on expanding its footprint through acquisitions, with the recent Nova acquisition and plans for the Pivot On-site acquisition, which will significantly increase its operational scale [7][24] - The strategy includes enhancing employer relationships and scaling the on-site health segment, which is projected to double in revenue due to the Pivot acquisition [24][25] - The company aims to maintain a leverage ratio of approximately 3.5 times by the end of 2025 and 3.0 times within the next 18 to 24 months, focusing on debt repayment and organic growth initiatives [26] Management's Comments on Operating Environment and Future Outlook - Management noted that despite macroeconomic uncertainties, there has been no observed impact on visit volumes, which is seen as a positive indicator [27][28] - The company is well-positioned to handle potential economic slowdowns, leveraging its history of managing costs effectively during downturns [31][32] - Future growth is anticipated from potential increases in manufacturing jobs due to reshoring efforts, which could drive visit growth at the company's centers [28][29] Other Important Information - The company declared a cash dividend of $0.0625 per share, payable on May 29, 2025 [21] - The company ended Q1 2025 with a total debt balance of $1.6 billion and a cash balance of $52 million, with a net leverage ratio of 3.9 times [20] Q&A Session Summary Question: Discussion on Employer Services volumes and turnaround - Management indicated that the positive performance in Employer Services volumes is attributed to improved sales and marketing efforts, with cautious optimism for continued growth [39][41] Question: Future growth with recent acquisitions - Management emphasized the importance of scaling operations and enhancing partnerships within the managed care ecosystem to drive future growth [43][44] Question: Workers' compensation visit growth and long-term outlook - Management acknowledged that while organic growth was slightly slower than expected, they anticipate positive growth moving forward [53][54] Question: Impact of inflation on rates - Management explained that rates typically adjust in line with inflation, with historical patterns showing timely adjustments to fee schedules [61][64] Question: Cost structure and labor efficiency - Management highlighted that labor constitutes a significant portion of costs, with teams effectively managing staffing levels in response to visit volumes [102][103]

Financial Performance - Concentra's Q1 2025 total revenue reached $5008 million, a 71% year-over-year increase[14] - Adjusted EBITDA for Q1 2025 was $1027 million, up 68% compared to Q1 2024[14] - The company is raising its FY 2025 revenue guidance to between $21 billion and $215 billion, and adjusted EBITDA guidance to between $415 million and $430 million[12] - TTM (Trailing Twelve Months) Revenue is $19 billion and TTM Adjusted EBITDA is $383 million[6] - TTM Adjusted EBITDA margin is 198%[10] Acquisitions and Expansion - Concentra completed the acquisitions of Nova (+67 centers) and PHC (+5 centers)[12] - The company announced the acquisition of Pivot Onsite Innovations (200+ onsite health clinics)[12] - Three de novo locations were opened in Q1 2025, with 3-4 more expected by year-end[12] - The purchase price for Pivot Onsite Innovations is $55 million[18] Operational Metrics - Concentra operates 627 occupational health centers and 160 onsite health clinics[6] - Visits per day (VPD) increased by 32% year-over-year, reaching 509k in Q1 2025[14] - Revenue per visit (RPV) increased by 56% year-over-year, reaching $14694 in Q1 2025[14]

Core Viewpoint - Concentra Group Holding Parent, Inc. has announced a definitive agreement to acquire Pivot Onsite Innovations, enhancing its position in the onsite healthcare market [1][2][4]. Company Summary - The acquisition of Pivot Onsite Innovations will expand Concentra's network to approximately 350 clinics across more than 40 states, significantly increasing its service capabilities in onsite healthcare [7][9]. - The deal is valued at $55 million, with funding sourced from available cash and an existing revolving credit facility, and is expected to close in the second quarter of 2025 [10]. - Concentra currently has a market capitalization of $2.6 billion and anticipates earnings growth of 7.5% over the next five years [5]. Industry Summary - The onsite healthcare market is experiencing growing demand as employers prioritize immediate and accessible care within the workplace, which supports employee wellness and occupational health programs [7][11]. - The global occupational health market is projected to grow from $5.45 billion in 2025 to $8.47 billion by 2032, reflecting a compound annual growth rate (CAGR) of 6.5% [11].