Earnings

Concentra Adds $250 Million Buyback Authorization As Quarterly Profit Rises 36%

The workplace healthcare provider raised its revenue and adjusted earnings outlook, but quarterly operating cash flow fell.

Matteo Parrino Jonathan Ponciano

Matteo Parrino, Jonathan Ponciano

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Concentra Adds $250 Million Buyback Authorization As Quarterly Profit Rises 36%

Concentra Group Holdings Parent, which provides workplace healthcare, raised its full-year forecasts Thursday as third-quarter net income rose 36% to $67.8 million. Its board also approved up to $250 million in additional share buybacks Wednesday, according to an SEC filing accompanying the results.

Higher Earnings, Less Quarterly Cash

Revenue reached $622.1 million, 8.6% above the year-earlier $572.8 million, while net income compared with $49.8 million. Concentra reported earnings per share of $0.52, versus $0.38; adjusted earnings per share were also $0.52, compared with $0.39.

The company's adjusted earnings measure, which excludes interest, taxes, depreciation, amortization and specified other costs, reached $140.2 million, up 17.9% from $118.9 million. Net income margin reached 10.9%, versus 8.7%, and the adjusted earnings margin was 22.5%, versus 20.8%.

Cash moved the other way during the quarter: operations generated $51.9 million, compared with $60.6 million a year earlier. Free cash flow fell to $32.2 million from $40.2 million. For the first nine months, however, operating cash flow totaled $208.099 million versus $160.705 million, and free cash flow reached $163.171 million versus $99.280 million.

Management now expects 2026 revenue of $2.360 billion–$2.380 billion, replacing $2.325 billion–$2.375 billion. Its adjusted earnings outlook rose to $505 million–$510 million from $485 million–$495 million.

More Visits Across A Larger Network

Concentra treats workplace injuries and illnesses and provides exams, drug and alcohol screening, vaccinations and physical therapy. Employers are its main customers; employers, workers' compensation insurers and third-party administrators provide most payments. Its occupational health centers accounted for approximately 93% of 2025 revenue.

The centers recorded 3,731,956 patient visits in the third quarter, up 4.9% from a year earlier. Average revenue per visit increased 3.3% to $152.14 from $147.31. Workers' compensation visits rose 4.2%, and employer-services visits increased 5.8%.

Concentra ended September with 639 occupational health centers, versus 628 a year earlier, and 423 employer-worksite clinics, versus 413. During the quarter, it bought a four-center Minnesota practice and opened centers in Kansas City, Boise and Daytona Beach.

October brought openings in Pensacola and Washington, DC. Management says it remains on track to open at least eight new centers in 2026.

Buybacks And Debt Payments

The additional authorization supplements the buyback program approved in November 2025, has no expiration date and does not require Concentra to purchase shares. During the third quarter, the company bought 1.0 million shares for $34.65 million and repaid $52.4 million on its term loan due in 2031.

Quarter-end cash stood at $85.8 million, with total debt of $1,521.3 million. Its net debt relative to adjusted earnings was 2.90 times. S&P Global upgraded the company's credit rating from BB- to BB, while Moody's changed its outlook from stable to positive.

Concentra retained its free cash flow forecast of $220 million–$240 million and capital spending target of $70 million–$80 million, excluding acquisitions and after asset-sale proceeds.

President and CEO Matt DiCanio said, "We expanded our footprint, strengthened the balance sheet and returned capital to shareholders." DiCanio succeeded Keith Newton effective Sunday in the previously announced transition. Newton became executive chairman, and Tanner Newton became executive vice president and chief financial officer.

Concentra plans to pay its $0.0625-per-share dividend on or about December 4 to holders of record November 19, according to the dividend declaration.

Sources

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