National Medical Care Company (4005) investor relations material

Executive summary

• Q1 2026 revenue was SAR 388 million, up 1% year-over-year, supported by a 9% increase in patient volumes despite the full impact of Ramadan and Eid, which shifted case mix toward lower acuity and lower margin treatments.

• Net profit declined 39% year-over-year to SAR 52 million, with margin compression driven by a shift in case mix and higher operating expenses.

• EBITDA fell 25% year-over-year to SAR 92 million, mainly due to seasonal effects, higher operating costs, and a shift in payer and case mix.

• Management expects normalization and recovery in volumes, case mix, and margins starting April, with early signs of improvement already visible.

• Strategic focus on capacity expansion, service-line growth, and digital transformation to strengthen market position.

Financial highlights

• Revenue stable at SAR 388 million year-over-year; inpatient admissions grew 16%, outpatient visits up 9%.

• Gross profit margin decreased to 31.6% from 37.1% year-over-year; gross profit declined 14% to SAR 123 million.

• Operating expenses rose 30% year-over-year, mainly due to higher salaries, consumables, and general and administrative costs.

• Operating cash flow was a net outflow of SAR 28 million, compared to an inflow of SAR 157 million in Q1 2025, driven by higher receivables and slower collections.

• Net debt increased to SAR 225 million, mainly to fund Al Narjis Hospital construction and lease obligations for radiology equipment.

Outlook and guidance

• Management anticipates margin and volume recovery as seasonal effects subside, with April already showing positive trends.

• Ongoing negotiations with insurance providers for price increases and investments in new facilities and digital automation are expected to positively impact margins in subsequent quarters.

• No formal guidance provided, but ambition is to maintain historical gross margins around 36% and improve profitability as payer mix normalizes.