IHH Healthcare Berhad (IHH) Q3 2025 earnings summary

Executive summary

• Q3 2025 delivered resilient financial performance with revenue and EBITDA up 18% year-over-year on a constant currency basis, despite over 9% currency translation losses and challenging macroeconomic conditions.

• PATMI increased 15% to RM616 million, but PATMI excluding exceptional items fell 13% due to higher depreciation, finance costs, and FX impacts.

• Growth was driven by increased inpatient admissions, higher revenue intensity, strategic shift toward day care, and contributions from recent acquisitions.

• Maintained healthy EBITDA and PATMI margins within guided ranges; received AAA rating on Sukuk program and refinanced MYR 2.35 billion in debt, saving 30 basis points in interest.

• Continued digital transformation and integration, notably in India with the Fortis acquisition and harmonization of clinical and operational platforms.

Financial highlights

• Q3 2025 revenue reached RM6.6 billion (+16% reported, +18% constant currency); EBITDA was RM1.5 billion (+16% reported, +18% constant currency).

• Year-to-date 2025 revenue was RM19.2 billion (+8% reported, +18% constant currency); EBITDA RM4.2 billion (+5% reported, +13% constant currency).

• Q3 EBITDA margin at 23%, within the 22–24% guidance; core PATMI at 9%.

• Net debt as of September 2025 at MYR 14 billion (MYR 11.1 billion excluding P-Life REIT), with net debt/EBITDA at 2x and net debt/equity at 0.3x.

• Free cash flow for YTD 2025 was RM1.8 billion; cash balance at RM1.4 billion as of 30 September 2025.

Outlook and guidance

• Cautiously optimistic for the remainder of 2025, supported by robust financial position, ongoing operational improvements, and continued transformation with focus on day care, digitalization, and clinical leadership.

• Margins expected to remain within guided range; focus on transformation, clinical leadership, and flexible capital allocation.

• CapEx guidance for 2026–2027 revised to low MYR 2 billion, reflecting a shift toward day care and ambulatory centers.

• Ongoing integration of recent acquisitions and expansion of hospital capacity expected to drive future growth.