4th Quarter 2025 Results February 26, 2026 ©2026 Concentra Inc. All rights reserved. Disclaimer Forward-Looking Statements This presentation contains forward-looking statements that express Concentra Group Holdings Parent, Inc.'s ("Concentra," the "Company," "we" or "our") current opinions, expectations, beliefs, plans, objectives, assumptions or projections regarding future events or future results that include, but are not limited to, financial guidance and other projections and forecasts. Forward looking ...

Company Overview - Concentra is the largest occupational health services provider in the United States [3] - The company was originally known as OccuSystems and rebranded to Concentra in the late 1990s [2] - Concentra was sold to Humana in 2011 and later acquired by Select Medical in 2015 [2][3] - The company became publicly traded in July 2024 following a spin-off from Select Medical [3] Leadership - Keith Newton has been with Concentra for 25 years and currently serves as CEO [2] - The leadership team includes CFO Matt DiCanio and SVP of Finance and Strategy Tanner Newton [1]

Concentra Group Holdings Parent (NYSE:CON) FY Conference Summary Company Overview - **Company Name**: Concentra Group Holdings - **Industry**: Occupational Health Services - **Key Leadership**: CEO Keith Newton, CFO Matt DiCanio, SVP of Finance and Strategy Tanner Newton - **Public Trading**: Became publicly traded in July 2024 after a spin-off from Select Medical [2][22] Core Business Insights - **Market Position**: Largest occupational health services provider in the U.S., treating 1 out of every 4 workers' compensation injuries [3] - **Service Model**: Operates over 1,000 locations, including 650 brick-and-mortar facilities and over 400 on-site employer clinics [4][5] - **Patient Volume**: Facilities see about 100 patients daily, focusing on various services including drug screens, physicals, and injury care [4] - **Employer Relationships**: Over 200,000 direct employer relationships, with 98% of employers having been with Concentra for over 10 years [6][8] Financial Performance - **Revenue**: Approximately $2.2 billion with EBITDA around $425-430 million [23] - **Growth Rate**: 13% year-over-year growth in 2025; high single-digit growth excluding larger acquisitions [24] - **Cost Structure**: 71% of revenue is cost of service, with 80% being variable costs [25] - **EBITDA Margin**: Approximately 20% adjusted EBITDA margins for five consecutive years [26] - **Free Cash Flow**: Over $1 billion in free cash flow generation since 2021, with greater than 100% free cash flow conversion [27] Market Dynamics - **Workers' Compensation**: Each state sets its reimbursement rates, with expectations of a 3% increase in rates for 2026 [40][43] - **Employer Services**: Anticipated 3%-4% increase in pricing for employer services, aligning with inflationary indicators [47] - **Diversification**: No significant customer concentration risk; largest customer accounts for about 3% of revenues [14] Growth Strategy - **Acquisitions**: Over 70 acquisitions since 2016, with a focus on small M&A and de novo practices [16] - **Market Size**: The occupational health industry is valued at $176 billion, with significant growth opportunities [17] - **Demographic Trends**: An aging workforce and increasing comorbidities are expected to impact service demand positively [18] Challenges and Opportunities - **Economic Environment**: Despite economic uncertainties, Concentra has shown resilience with strong growth in work comp visit rates [37][38] - **AI Impact**: Potential job creation from AI developments, particularly in construction and data centers, may increase demand for services [19][20] Capital Allocation - **Priorities**: Focus on deleveraging, share repurchase programs, and continued M&A efforts while maintaining flexibility in capital allocation [48][49] - **Leverage Target**: Aiming for leverage below 3.0 by the end of 2026 [28][50] Future Outlook - **Investor Education**: As investors become more familiar with Concentra's business model and performance, expectations for growth in a recovering labor market are optimistic [55][56] - **Execution Confidence**: Strong historical performance and experienced leadership position the company well for future growth [56] This summary encapsulates the key points from the Concentra Group Holdings FY Conference, highlighting the company's market position, financial performance, growth strategies, and future outlook.

Business Overview - Concentra is the largest provider of occupational health services in the United States by number of locations[7] - The company cares for an average of over 52,000 patients each business day[7] - Concentra serves approximately 200,000 employer customers[7] - The company treats approximately 1 in every 4 injuries that occur within the U S workplace[12] - Concentra has over 1,000 total locations[12] Financial Performance - Concentra's TTM Revenue is $21 billion[8] - The company's TTM Adjusted EBITDA is $414 million[8] - Concentra's TTM Adjusted EBITDA margin is 198%[8] - The company's TTM free cash flow is $176 million[11] - Concentra's revenue from the largest employer customer is less than 3%[8]

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]

Core Insights - The article highlights two healthcare facility stocks, Concentra Group Holdings and US Physical Therapy, as strong investment opportunities due to favorable market conditions and demographic trends [1][13]. Concentra Group Holdings - Concentra is the largest outpatient provider of occupational health services in the U.S., with a market cap of $2.65 billion and a network of 11,000 health professionals [1]. - The company serves over 50,000 patients daily and operates more than 540 medical centers, treating 1 in 5 workplace injuries [9]. - Concentra's revenue for 2Q25 was $550.8 million, a 15% year-over-year increase, exceeding forecasts by $13.44 million [10]. - The company focuses on occupational health and workplace injury management, partnering with over 239,000 employers [7][8]. - J.P. Morgan analyst Benjamin Rossi rates Concentra as Overweight with a price target of $31, indicating a potential upside of 50% [12]. US Physical Therapy - US Physical Therapy operates outpatient clinics for physical and occupational therapy, with a market cap of $1.2 billion and over 765 clinics across 44 states [13]. - The company reported revenue of $197.3 million in 2Q25, an 18% year-over-year increase, beating forecasts by $7.45 million [16]. - US Physical Therapy is well-positioned to benefit from demographic trends such as an aging population and increasing obesity rates, driving demand for physical therapy services [17]. - Rossi rates US Physical Therapy as Overweight with a price target of $110, suggesting a potential gain of 34% [17].

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].