Concentra Group 2025 Q1 Earnings Net Income Declines by 19%
Thursday, May 8, 2025 7:58 am ET
12min read Concentra Group (CON) reported its fiscal 2025 Q1 earnings on May 07th, 2025. Concentra Group's Q1 2025 earnings showed a net income decline of 19.2% compared to Q1 2024, as the company navigated higher interest expenses due to its IPO recapitalization. Despite the net income drop, Concentra raised its financial guidance for 2025 based on strong Q1 revenue and development activities, anticipating continued growth throughout the year. The company projects revenue between $2.1 billion and $2.15 billion, with Adjusted EBITDA ranging from $415 million to $430 million, reflecting confidence in strategic acquisitions and effective integration plans.
Revenue
Concentra Group reported a 7.1% increase in total revenue, reaching $500.75 million in Q1 2025, up from $467.60 million in Q1 2024. The occupational health center segment contributed significantly with $472.92 million. Workers' compensation services recorded $302.11 million, while employer services generated $160.14 million. The consumer health segment added $8.61 million, alongside other occupational health center revenue at $2.06 million. Onsite health clinics contributed $16.55 million, with other revenue streams totaling $11.28 million.
Earnings/Net Income
Concentra Group's EPS fell 36.2% to $0.30 in Q1 2025 from $0.47 in Q1 2024. Net income dropped to $40.64 million, a 19.2% decrease from $50.28 million the previous year. The EPS decline indicates a challenging financial quarter for Concentra.
Price Action
The stock price of Concentra Group edged up 0.60% during the latest trading day, increased 0.55% over the most recent full trading week, and climbed 6.11% month-to-date.
Post-Earnings Price Action Review
The strategy of purchasing Concentra Group shares after a quarter showing revenue growth and holding for 30 days has proven effective over the past five years, yielding a 7.29% return and outperforming the benchmark significantly. This approach offers a compound annual growth rate (CAGR) of 9.47%, demonstrating a reasonably good risk-adjusted return with a Sharpe ratio of 0.90. The strategy exhibits moderate volatility at 10.55%, encouraging investors to consider the potential returns balanced against the inherent risks. Such consistency in performance highlights the company's ability to drive shareholder value despite fluctuations in earnings or market conditions.
CEO Commentary
Concentra reported a solid start to 2025, with strong revenue and Adjusted EBITDA growth in the first quarter. CEO Keith Newton emphasized the company's deep understanding of patient and client needs, which drives key growth initiatives and delivers a market advantage. The leadership remains focused on executing strategic business objectives while maintaining operational efficiency. CFO Matt DiCanio highlighted the positive year-over-year growth in Employer Services visit volumes and successful acquisitions, expressing confidence in effective integration and growth momentum as the year progresses.
Guidance
Concentra anticipates continued organic and inorganic growth throughout 2025. The company is focused on achieving an effective integration of newly acquired centers and businesses, aiming for a net leverage ratio of approximately 3.0x within 18-24 months. Concentra remains committed to enhancing operational efficiency and achieving strategic objectives, positioning itself favorably in the occupational health market moving forward.
Additional News
Concentra has been active on the mergers and acquisitions front, acquiring Nova Medical Centers for $265 million, expanding its reach with 67 occupational health centers across five states. This acquisition aligns with Concentra’s goals to strengthen service delivery through increased access and improved patient outcomes. Furthermore, Concentra signed a definitive agreement to acquire Pivot Onsite Innovations, valued at $55 million, adding about 200 onsite health clinics to its portfolio. In addition, the company announced a cash dividend of $0.0625 per share, payable on May 29, 2025, reinforcing its commitment to returning value to shareholders.
Revenue
Concentra Group reported a 7.1% increase in total revenue, reaching $500.75 million in Q1 2025, up from $467.60 million in Q1 2024. The occupational health center segment contributed significantly with $472.92 million. Workers' compensation services recorded $302.11 million, while employer services generated $160.14 million. The consumer health segment added $8.61 million, alongside other occupational health center revenue at $2.06 million. Onsite health clinics contributed $16.55 million, with other revenue streams totaling $11.28 million.
Earnings/Net Income
Concentra Group's EPS fell 36.2% to $0.30 in Q1 2025 from $0.47 in Q1 2024. Net income dropped to $40.64 million, a 19.2% decrease from $50.28 million the previous year. The EPS decline indicates a challenging financial quarter for Concentra.
Price Action
The stock price of Concentra Group edged up 0.60% during the latest trading day, increased 0.55% over the most recent full trading week, and climbed 6.11% month-to-date.
Post-Earnings Price Action Review
The strategy of purchasing Concentra Group shares after a quarter showing revenue growth and holding for 30 days has proven effective over the past five years, yielding a 7.29% return and outperforming the benchmark significantly. This approach offers a compound annual growth rate (CAGR) of 9.47%, demonstrating a reasonably good risk-adjusted return with a Sharpe ratio of 0.90. The strategy exhibits moderate volatility at 10.55%, encouraging investors to consider the potential returns balanced against the inherent risks. Such consistency in performance highlights the company's ability to drive shareholder value despite fluctuations in earnings or market conditions.
CEO Commentary
Concentra reported a solid start to 2025, with strong revenue and Adjusted EBITDA growth in the first quarter. CEO Keith Newton emphasized the company's deep understanding of patient and client needs, which drives key growth initiatives and delivers a market advantage. The leadership remains focused on executing strategic business objectives while maintaining operational efficiency. CFO Matt DiCanio highlighted the positive year-over-year growth in Employer Services visit volumes and successful acquisitions, expressing confidence in effective integration and growth momentum as the year progresses.
Guidance
Concentra anticipates continued organic and inorganic growth throughout 2025. The company is focused on achieving an effective integration of newly acquired centers and businesses, aiming for a net leverage ratio of approximately 3.0x within 18-24 months. Concentra remains committed to enhancing operational efficiency and achieving strategic objectives, positioning itself favorably in the occupational health market moving forward.
Additional News
Concentra has been active on the mergers and acquisitions front, acquiring Nova Medical Centers for $265 million, expanding its reach with 67 occupational health centers across five states. This acquisition aligns with Concentra’s goals to strengthen service delivery through increased access and improved patient outcomes. Furthermore, Concentra signed a definitive agreement to acquire Pivot Onsite Innovations, valued at $55 million, adding about 200 onsite health clinics to its portfolio. In addition, the company announced a cash dividend of $0.0625 per share, payable on May 29, 2025, reinforcing its commitment to returning value to shareholders.
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