Concentra Group 2025 Q3 Earnings Strong Performance as Net Income Rises 8.9%

Concentra Group (CON) delivered robust third-quarter 2025 results, surpassing revenue estimates and raising full-year guidance. The company’s shares, however, have faced short-term declines amid broader market underperformance.

Revenue

Concentra’s total revenue surged 17.0% year-over-year to $572.80 million, driven by a 9.2% increase in patient visits and a 4.2% rise in revenue per visit. This growth outpaced Wall Street’s $562.76 million consensus estimate, underscoring the company’s expanding occupational health services and inorganic strategy execution.

Earnings/Net Income

Earnings per share (EPS) climbed 2.7% to $0.38, exceeding the $0.37 consensus estimate. Net income reached $49.82 million, reflecting an 8.9% year-over-year increase. The company’s profitability has remained resilient for eight consecutive years, supported by operational discipline and clinical excellence.

Post-Earnings Price Action Review

The strategy of purchasing Concentra shares on its revenue raise announcement and holding for 30 days has historically delivered strong returns. Over the past three years, this approach generated a 17.5% cumulative gain, outpacing the S&P 500 by 12.5%. Consistent earnings and revenue growth, combined with a $0.0625/share quarterly dividend, have bolstered investor returns despite post-earnings volatility.

CEO Commentary

CEO Keith Newton highlighted the company’s 17.0% revenue growth, 8.9% net income increase, and 17.1% rise in Adjusted EBITDA, attributing these results to visit growth, rate increases, and strategic acquisitions. He emphasized operational discipline and progress toward separation from Select Medical Corporation as priorities.

Guidance

Concentra raised 2025 revenue guidance to $2.145–$2.160 billion and Adjusted EBITDA to $425–$430 million. The company also announced a $100 million share repurchase program through 2027 and a $0.0625/share dividend, signaling confidence in sustaining leverage below 3.0x by 2026.

Additional News

1. M&A Activity: Concentra completed the $55 million acquisition of Pivot Onsite Innovations, expanding its onsite health clinics to 350 locations.

2. Leadership Changes: Vipin Gopal and Brigid Bonner joined the board, bringing expertise in AI, data analytics, and healthcare transformation.

3. Dividend/Repurchase: A $0.0625/share quarterly dividend and $100 million share buyback program were announced, reflecting strategic capital allocation.