Concentra Group Holdings Parent (CON) Q4 2024 earnings summary

Executive summary

• Achieved Q4 2024 revenue of $465 million (up 5.5% YoY) and full-year 2024 revenue of $1.9 billion (up 3.4% YoY), with Adjusted EBITDA for Q4 at $77.5 million (up 13.6% YoY) and net income of $22.8 million for Q4 and $171.9 million for the year.

• Completed transformative IPO and spinoff from Select Medical in 2024.

• Closed $265 million acquisition of Nova Medical Centers, adding 67 centers and expanding the national footprint to over 770 centers and clinics.

• Opened three new Occupational Health Centers in Q4 and one in January 2025; five additional leases signed for 2025.

• Maintained quarterly dividend and reaffirmed deleveraging target of ~3.0x within 18–24 months.

Financial highlights

• Q4 2024 revenue: $465 million (up 5.5% YoY); Adjusted EBITDA: $77.5 million (up 13.6% YoY); full-year revenue: $1.9 billion (up 3.4% YoY); full-year Adjusted EBITDA: $376.9 million (up 4.3% YoY).

• Net income: $22.8 million for Q4 (down 21% YoY); $171.9 million for FY 2024 (down 7% YoY), mainly due to IPO recapitalization.

• Adjusted EBITDA margin: 16.7% in Q4; 19.8% for FY 2024.

• Cash flow from operations: $93.7 million in Q4; cash balance at year-end: $183.3 million.

• Net leverage ratio at year-end 2024: 3.46x; pro forma post-Nova: 3.9x; target ~3.0x in 18–24 months.

Outlook and guidance

• 2025 revenue expected at ~$2.1 billion, a 10.5% increase over 2024.

• Adjusted EBITDA guidance for 2025: $410–$425 million, up ~11% at midpoint.

• Capital expenditures projected at $80–$90 million; net leverage expected to end 2025 at ~3.5x.

• Board declared a $0.0625 per share dividend payable April 1, 2025.

• Nova Medical Centers expected to contribute $15+ million to 2025 Adjusted EBITDA; synergies to phase in during the year.