Concentra Group Holdings Parent, Inc. Q1 FY2025 earnings call

Key Trends

• Solid visit growth: Patient visits up 3.2% to 50,900 per day in Q1 2025, with employer services visits showing year-over-year growth after consecutive declines. Workers' compensation visits per day up 2.4% year-over-year.
• Strong rate growth: Revenue per visit increased 5.6% in Q1 2025 compared to the prior year.
• Significant corporate development: Closed Nova Medical Centers acquisition, Physicians Health Center acquisition, opened 3 de novo sites, and signed Pivot Onsite acquisition, adding 75 new occupational health centers and ~200 on-site health clinics.

Occupational Health Centers

• Inclusive of Nova acquisition, total revenue in Q1 2025 was $472.9 million, a 7.2% year-over-year increase. Revenue per day was up 8.9%. Workers' compensation revenue was $302.1 million, up 8% year-over-year, with visits per day up 2.4% and revenue per visit up 7.1%. Employer services revenue was $160.1 million, up 6.2% year-over-year, with visits per day up 3.9%. Excluding the Nova acquisition, total revenue within the occupational health center operating segment was $461.7 million, a 4.7% increase year-over-year, with revenue per day up 6.3%.

Onsite Health Clinics

• Revenue was $16.6 million in Q1 2025, a 4.4% year-over-year increase.

Other Business

• Generated revenue of $11.3 million, a 5.7% year-over-year increase.

Financial Outlook

• Revised 2025 financial guidance raised: Revenue expected in the range of $2.1 billion to $2.15 billion and adjusted EBITDA in the range of $415 million to $430 million, reflecting strong Q1 performance and acquisitions like Physicians Health Center and Pivot Onsite.

Risks

• Potential macroeconomic turbulence, though no impact on visits observed so far. Tariffs expected to have minimal bottom line impact as medical supplies constitute less than 3% of total revenue.

Q: On employer services volumes, discuss turnaround and future trends A: Turnaround due to sales/marketing efforts and improved employer optimism. Cautiously optimistic about future volume trends.

Q: On workers' comp organic performance A: Core work comp visits up but slightly slower, but expected to be positive going forward.

Q: On trade policy and rate impact A: Tariffs have minimal impact; higher inflation likely leads to higher rates. Employer services rates reflect inflation trends.

Q: On seasonality of workers' comp fee schedule updates A: Majority updates in first quarter, with some in mid-year and October.

Q: On onsite business in macro downturn A: Onsite business seen as an investment employers stick with, with potential tailwind from reshoring of U.S. jobs