Concentra Group Holdings Parent (CON) Guidance summary

Opening remarks and agenda

• Management presented preliminary Q4 and full-year 2024 results, highlighted the IPO and separation from Select Medical, and discussed the Nova Medical Centers acquisition.

• Emphasis was placed on maintaining high-quality patient care and executing strategic objectives.

• No Q&A session was held, but future opportunities for questions were mentioned.

Guidance on key objectives

• 2025 revenue is projected at approximately $2.1 billion, with Adjusted EBITDA of $410–$425 million, representing about 10.5% and 10.8% YoY growth, respectively.

• Capital expenditures for 2025 are expected to be $80–$90 million, including one-time acquisition transition costs.

• Net leverage ratio is targeted at 3.5x by year-end 2025, with a longer-term goal of 3.0x within 18–24 months.

• A cash dividend of $0.0625 per share was declared, payable April 1, 2025.

• Long-term targets include mid- to high-single-digit revenue growth, 20%+ Adjusted EBITDA margin, and over 80% annual free cash flow conversion.

Market trends and strategic opportunities

• The Nova acquisition expands access points in Texas, Georgia, Tennessee, Indiana, and Wisconsin, with Texas becoming the largest state for occupational health center locations.

• Occupational health market growth is driven by increased revenue per visit and higher workers' compensation visit volumes.

• Nova's complementary footprint and similar medical philosophy create a strong strategic fit and growth engine.

• The combined entity now operates over 770 occupational health centers and onsite clinics nationwide.

• High patient satisfaction scores and increased access to care were noted as competitive advantages.