Concentra (NYSE: CON) raises full-year guidance and authorizes up to $250 million buyback

What happened

Concentra Group Holdings Parent, Inc. (NYSE: CON) reported third-quarter net income of $67.8 million, up 36.0% from $49.8 million a year earlier.

Revenue grew 8.6% to $622.1 million from $572.8 million in the third quarter of 2025. Net income grew more than four times as fast as sales. Management also raised its full-year 2026 guidance.

The new ranges are revenue of $2.36 billion to $2.38 billion, Adjusted EBITDA of $505 million to $510 million and Free Cash Flow of $220 million to $240 million. Capital expenditures are expected at $70 million to $80 million, excluding acquisitions and net of proceeds from asset sales.

The board declared a cash dividend of $0.0625 per share. It also authorized a new repurchase program of up to $250 million with no expiration date. The program adds to the one authorized in November 2025. Concentra does not have to buy any shares.

Effective Nov. 1, Matt DiCanio succeeded Keith Newton as president and chief executive officer. Tanner Newton became chief financial officer, and Keith Newton moved to executive chairman of the board.

Key numbers

Metric	Latest	Change	Source
Q3 revenue	$622.1 million	from $572.8 million, +8.6%	SEC 8-K earnings release
Q3 Adjusted EBITDA	$140.2 million	from $118.9 million, +17.9%	SEC 8-K earnings release
Q3 net income	$67.8 million	from $49.8 million, +36.0%	SEC 8-K earnings release
Q3 earnings per share	$0.52	from $0.38, +36.8%	SEC 8-K earnings release
Q3 Free Cash Flow	$32.2 million	from $40.2 million	SEC 8-K earnings release
Net leverage ratio at Sept. 30	2.90x		SEC 8-K earnings release

Read more: Concentra Group Holdings Parent (CON) company research

Where the growth came from

Both volume and price rose in the occupational health centers, and both quarters had 64 business days. Visits per day climbed 4.9% to 58,312 from 55,589. Revenue per visit rose 3.3% to $152.14 from $147.31. Employer services visits grew 5.8% and workers' compensation visits 4.2%, while consumer health visits fell 6.7%.

The revenue gain was $49.3 million. Adjusted EBITDA, a non-GAAP measure, rose 17.9% to $140.2 million from $118.9 million. Its margin widened 178 basis points to 22.5%. Cost of services rose 5.2%, slower than revenue. General and administrative expense rose 15.2%.

Interest expense fell 12.3% to $25.2 million from $28.7 million. Transition services agreement fees in general and administrative expense dropped to $0.4 million from $2.7 million.

The footprint also grew. Concentra ended the quarter with 639 occupational health centers against 628 a year earlier. It opened three de novo centers in Kansas City, Boise and Daytona Beach and bought a four-center practice in Minnesota. Onsite health clinics rose to 423 from 413.

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Why it matters

OptimistFi has argued that Concentra can compound cash if its clinics keep drawing employer and payor volume while labor costs, leverage and dilution stay contained. The quarter supports the volume and dilution parts. Visits grew in both large categories. Shares outstanding fell to 126.5 million at Sept. 30 from 128.6 million at Dec. 31, 2025.

Concentra repurchased 1.0 million shares for $34.65 million in the quarter. The new authorization gives it room to keep cutting the share count. It is a cap, not a commitment.

Watch the cost line. General and administrative expense grew faster than revenue. Stock compensation expense was $4.5 million against $2.3 million a year earlier.

Debt and cash flow

Cash generation did not keep pace with earnings. Net cash from operating activities was $51.9 million against $60.6 million a year earlier. Free Cash Flow was $32.2 million against $40.2 million. Cash paid for taxes was $31.6 million against $3.6 million. For the first nine months, Free Cash Flow was $163.2 million, up from $99.3 million.

The balance sheet carries total debt of $1.52 billion and a net leverage ratio of 2.90x. The company says that ratio meets its credit agreement covenant. Concentra repaid $52.4 million on its term loan due 2031 in the quarter and ended September with $85.8 million in cash.

Credit agencies noted the progress. S&P Global upgraded the corporate credit rating to BB from BB-. Moody's revised its outlook to positive from stable.

Even so, stronger guidance does not by itself prove the growth is durable. Quarterly cash flow trailed the prior-year quarter, and debt remains large relative to cash.

What's next

Concentra holds its conference call and live webcast on Friday, Nov. 6, at 9 a.m. Eastern Time. The dividend is payable on or about Dec. 4 to stockholders of record at the close of business Nov. 19.

The next quarterly report will show whether Free Cash Flow recovers above year-earlier levels and whether leverage holds near 2.90x. Both would reinforce the case. A second quarter of weaker cash flow alongside new buybacks would weaken it.

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