Concentra Group Holdings Parent, Inc. Announces Results For Its Second Quarter Ended June 30, 2025, Cash Dividend, and Raised FY 2025 Guidance

Concentra Group Holdings Parent, Inc. ("Concentra," the "Company," "we," "us," or "our") (NYSE:CON), the nation's largest provider of occupational health services, today announced results for its second quarter ended June 30, 2025, the declaration of a cash dividend, and raised guidance for FY 2025.

"Concentra delivered strong results in the second quarter, building on our solid start to 2025," said Keith Newton, Chief Executive Officer of Concentra. "Our results reflected strength across several key measures, including growth in patient visits, rate, revenue, and Adjusted EBITDA. We are well-positioned for continued momentum driven by the disciplined execution of our strategy by our outstanding colleagues."

Matt DiCanio, Concentra's President and Chief Financial Officer, added, "We are progressing well on the integration of our recent acquisitions of Nova Medical Centers and Pivot Onsite Innovations, enabling Concentra to deliver our high-quality workplace health services from over 1,000 combined occupational health center and onsite health clinic locations across the country. In addition to our organic visit growth, these acquisitions and our broader development efforts will contribute to Concentra's performance through increased top line growth and operational efficiencies."

Second Quarter 2025 Highlights

• Revenue of $550.8 million, an increase of 15.2% from $477.9 million in Q2 2024
• Net income of $46.2 million, net income attributable to the Company of $44.6 million, and Adjusted Net Income Attributable to the Company of $47.7 million in Q2 2025
• Earnings per share of $0.35 and Adjusted Earnings per Share of $0.37 in Q2 2025
• Adjusted EBITDA of $115.0 million, an increase of 13.2% from $101.6 million in Q2 2024
• Cash balance of $73.9 million and net leverage of 3.8x at the end of Q2 2025
• Patient Visits of 3,520,320, or 55,005 Visits per Day in the quarter, an increase in Visits per Day of 9.5% from Q2 2024
• Revenue per Visit of $145.92, an increase of 4.4% from $139.81 in Q2 2024
• Closed on the acquisition of Pivot Onsite Innovations on June 1^st
• Total occupational health centers of 628, compared to 547 at the end of Q2 2024
• Total onsite health clinics of 406, compared to 154 at the end of Q2 2024
• More than 1,000 total locations, serving approximately 215,000 employer customers
• Announced the appointment of Brigid Bonner and Vipin Gopal to our board of directors

Second Quarter 2025 Financial Overview

For the second quarter ended June 30, 2025, revenue increased 15.2% to $550.8 million, compared to $477.9 million for the same quarter, prior year. Income from operations increased 6.7% to $89.5 million for the second quarter ended June 30, 2025, compared to $83.9 million for the same quarter, prior year. Net income was $46.2 million, earnings per share was $0.35, and Adjusted Earnings per Share was $0.37 for the second quarter ended June 30, 2025 compared to net income of $53.1 million, earnings per share of $0.50 and Adjusted Earnings per Share of $0.49, for the same quarter, prior year. Net income decreased due to higher interest expense from the IPO recapitalization. Adjusted EBITDA increased 13.2% to $115.0 million for the second quarter ended June 30, 2025, compared to $101.6 million for the same quarter, prior year. 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.

Year to Date June 30, 2025 Financial Overview

For the six months ended June 30, 2025, revenue increased 11.2% to $1,051.5 million, compared to $945.5 million for the same period, prior year. Income from operations increased 6.5% to $169.9 million for the six months ended June 30, 2025, compared to $159.4 million for the same period, prior year. Net income was $86.8 million, earnings per share was $0.65 and Adjusted Earnings per Share was $0.70 for the six months ended June 30, 2025, compared to net income of $103.3 million, earnings per share of $0.97, and Adjusted Earnings per Share of $0.98 for the same quarter, prior year. Adjusted EBITDA increased 10.1% to $217.7 million for the six months ended June 30, 2025, compared to $197.7 million for the same period, prior year. 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.

Balance Sheet

As of June 30, 2025, our balance sheet reflected cash of $73.9 million, total debt of $1,665.9 million and total assets of $2,841.6 million. Concentra's net leverage ratio as of June 30, 2025 is 3.8x, which was in compliance with the financial covenant under our credit agreement. The Company is targeting a net leverage ratio of approximately 3.5x by the end of 2025 and less than 3.0x by the end of 2026.

Cash Flow

Cash flows provided by operating activities in the second quarter ended June 30, 2025 totaled $88.4 million compared to $70.4 million for the same quarter, prior year. The increase in year over year cash flow from operations is driven primarily by the higher income from operations and also due to the timing of payroll and other payables at quarter end. During the second quarter ended June 30, 2025, cash flow from investing activity resulted in cash used of $79.5 million, including capital expenditures of $25.2 million, with $7.4 million of one-time capital expenditures associated with our Nova integration and rebranding, and acquisition-related spend of $54.3 million. Cash flow from operations less cash flow from investing activity resulted in cash provided of $8.9 million for the quarter. Cash flow from financing activity generated $12.9 million for the quarter, resulting in an increase in cash of $21.8 million.

Pivot Onsite Innovations Acquisition Closing

Effective June 1, 2025, the Company acquired Onsite Innovations, LLC ("Pivot Onsite Innovations") for a purchase price of $54.4 million, subject to adjustment in accordance with the terms and conditions set forth in the equity purchase agreement.

Pivot Onsite Innovations operates over 240 onsite health clinics at employer locations in over 40 states, providing occupational health, wellness, prevention and performance services. The acquisition enabled the Company to expand to over 400 onsite health clinics at employer locations.

The transaction was financed using a combination of $35.0 million of available borrowing capacity under our existing Revolving Credit Facility and the remaining with cash on hand.

Dividend

On August 6, 2025, the Board of Directors declared a cash dividend of $0.0625 per share. The dividend will be payable August 28, 2025, to stockholders of record as of the close of business on August 21, 2025.

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 of Directors after taking into account various factors, 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 of Directors may deem to be relevant.

2025 Business Outlook

Concentra raised its financial guidance for 2025. We now expect to deliver the following results:

• Revenue in the range of $2.13 billion to $2.16 billion
• Adjusted EBITDA in the range of $420 million to $430 million
• Capital expenditures in the range of $80 million to $90 million (no change)
• Net leverage ratio of approximately 3.5x (no change)

A reconciliation of full year 2025 Adjusted EBITDA expectations to net income is presented in table XII 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 over 50,000 patients each day on average across 47 states at our 628 occupational health centers, 406 onsite health clinics at employer worksites, and Concentra Telemed as of June 30, 2025.

Conference Call

Concentra will host a conference call regarding its second quarter financial results and business outlook on Friday August 8, 2025, 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: 888-506-0062

International: 973-528-0011

Participant 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 2025 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;
• The 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;
• A security breach of our, or our third-party vendors', information technology systems which may cause a violation of HIPAA and subject us to potential legal and reputational harm;
• 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;
• Compliance with applicable laws regarding the corporate practice of medicine and therapy and fee-splitting;
• 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 rule;
• 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 other 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;
• Our ability to achieve the expected benefits of and successfully execute the Separation and related transactions;
• Restrictions on our business, potential tax and indemnification liabilities and substantial charges in connection with the Separation and related transactions;
• The negative impact of public threats such as a global pandemic or widespread outbreak of an infectious disease similar to the COVID-19 pandemic;
• The loss of key members of our management team;
• Our ability to attract and retain talented, highly skilled employees and a diverse workforce, and on 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;
• Changes in tax laws or exposures to additional tax liabilities; and
• Changes to United States tariff and import/export regulations and the impact on global economic conditions may have a negative effect on our business, financial condition and results of operations.

Except as required by applicable law, including the securities laws of the United States and the rules and regulations of the SEC, 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 forward-looking statements are reasonable, we cannot guarantee future results or performance.

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Investor inquiries:

Bill Chapman

Vice President, Strategy & Investor Relations

972-725-6488

[email protected]