GMR Solutions: Ambulance leader ready for takeoff, valuation on the ground – initiate at Buy

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GMR Solutions: Ambulance leader ready for takeoff, valuation on the ground – initiate at Buy

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GMR Solutions

Ambulance leader ready for takeoff,

valuation on the ground – initiate at Buy

Initiating Coverage: BUY | PO: 18.00 USD | Price: 10.90 USD

High-single digit EBITDA growth at depressed multiple 08 June 2026

We initiate coverage of GMR Solutions (GMRS), the largest provider of emergency Equity

medical services (EMS) in the US, with Buy rating and PO of $18 (65% potential upside).

We see a clear path to high‑single‑digit adj. EBITDA growth in 2027+, driven by Joanna Gajuk Research Analyst

accelerating expansion in higher‑margin air ambulance services. While federal policy BofAS

changes will pressure payer mix, GMRS trades at a discount to hospitals despite a more +1joanna.gajuk@bofa.com646 855 3961

favorable risk profile and meaningful upside potential from capital deployment (15% Kevin Fischbeck, CFA

2027E FCF yield). Our valuation is based on 7.2x 2027E EBITDA, a justified premium to Research Analyst

BofAS

hospitals given lower policy exposure and the company’s strong FCF generation and +1 646 855 5948

reinvestment optionality. kevin.fischbeck@bofa.com

Craig Jones

Accelerating air services drives mix, growth, and margins ResearchBofAS Analyst

While air is just 3% of transports it is ~50% of revenue, with $20k per trip vs $600 for +1 646 743 2020

craig.jones3@bofa.com

ground, creating powerful mix-driven growth. We model a +6% revenue CAGR translating

Joaquin Arriagada Martinez

to high-single-digit EBITDA growth from 2027+, driven by +5% air volumes (base adds + Research Analyst

capture gains) and +3% pricing. This is above the hospital growth. In addition, wins and BofAS +1 646 855 1654