Concentra lifts 2026 outlook as visits and pricing lift profit

Concentra Group Holdings Parent lifted its 2026 revenue forecast to $2.36 billion-$2.38 billion after third-quarter revenue rose 8.6% to $622.1 million from $572.8 million. Adjusted EBITDA increased 17.9% to $140.2 million. In the company’s first call under its new leadership, CFO Tanner Newton attributed the gain to volume and rate growth, disciplined execution and operating efficiencies.

Both executives started Nov. 1. Keith Newton, who moved to executive chairman, said he would continue working closely with the leadership team during the transition.

What drove third-quarter growth?

• Net income attributable to Concentra rose to $65.9 million, or $0.52 per share, from $48.3 million, or $0.38 per share.
• Adjusted earnings per share increased to $0.52 from $0.39.
• Adjusted EBITDA margin expanded 178 basis points to 22.5%.

Daily occupational health center visits increased 4.9% to an average of more than 58,000. Workers’ compensation visits per day rose 4.2%, while employer services visits increased 5.8%.

CEO Matt DiCanio said growth was “broad-based across all six regions and most end markets.” Favorable labor conditions in many blue-collar sectors and continued market-share gains drove the performance. Hiring-related services, including drug screens and physicals, were particularly strong among transportation and logistics, manufacturing, and construction-oriented customers.

Third-quarter visit growth came primarily from stronger initial injury visits, not more visits later in a patient’s treatment cycle. Customer retention remained at multi-year highs, and year-to-date new business activity ran ahead of 2025 levels.

Revenue per occupational health center visit rose 3.3%. Workers’ compensation revenue per visit increased 3.5%, largely because of fee-schedule increases. Employer services revenue per visit gained 4%, helped by a greater mix of higher-revenue physicals than drug screens.

Occupational health center revenue advanced 8.3% to $569.7 million. Onsite revenue rose 10% to $38.4 million, although Newton said organic onsite growth moderated because the acquired Pivot business entered the organic calculation after its acquisition anniversary.

Higher volume, pricing and efficiency lifted earnings faster than revenue.

What changed in Concentra’s guidance?

• 2026 revenue guidance increased to $2.36 billion-$2.38 billion, up $35 million at the low end and $5 million at the high end.
• Adjusted EBITDA guidance rose to $505 million-$510 million, up $20 million at the low end and $15 million at the high end.
• Free cash flow guidance remained $220 million-$240 million.
• Capital expenditure guidance remained $70 million-$80 million.

DiCanio said Concentra would provide formal 2027 guidance early next year. The increases followed stronger traffic and pricing, while unchanged cash-flow and spending ranges point to a measured deployment plan.

What will 2027 pricing and margins look like?

For 2027, DiCanio expects employer services rate growth to remain broadly consistent with the company’s long-term expectation of approximately 3%. Most states have yet to announce workers’ compensation fee schedules, but management sees no current reason to expect aggregate rate growth to differ materially from that long-term view.

CFO Tanner Newton said Concentra expects to “sustain its current margin level,” but probably cannot repeat the same degree of year-over-year margin expansion recorded in 2026. Staffing efficiencies and potential additional center-level improvements could support the margin.

Management expects continued pricing and profitable expansion, with less certainty about the pace of margin gains.

Where is Concentra expanding and deploying cash?

Concentra acquired four Minnesota medical centers and opened three newly developed centers during the quarter. Two more centers opened after quarter-end, and the company expects one additional center before year-end. Acquisitions and development should add 15 centers in 2026, with a low double-digit number of new-center openings anticipated in 2027.

Operating cash flow fell to $51.9 million from $60.6 million, primarily because of working-capital timing and higher cash tax payments. Free cash flow declined to $32.2 million from $40.2 million.

Concentra repurchased 1 million shares for $34.65 million during the quarter and had about $19 million left under its original $100 million authorization at Sept. 30. After quarter-end, the board approved a new $250 million repurchase program with no expiration date.

At Sept. 30, the company held $1.52 billion of debt and $85.8 million in cash, producing a 2.90-times net leverage ratio under its credit agreement. Newton said growth investments remain the first capital-allocation priority; debt reduction and share repurchases also rank as Concentra works toward a long-term 2.5-times leverage target.

What remains in the Select Medical separation?

DiCanio said separation activities from Select Medical were substantially complete and would conclude when the transition services agreement expires at the end of November.

Concentra Group Holdings Parent, the parent of Concentra and listed on the NYSE as CON, provides occupational health services across the United States to employers, workers and insurers through a nationwide network of medical centers and employer-based clinics. Its services include workplace injury care, workers’ compensation treatment, physical examinations, drug and alcohol testing, vaccinations, physical therapy, urgent care and other occupational medicine programs.

Concentra enters 2027 with higher guidance, a larger network and more repurchase capacity, but expects steadier rates and margin gains.