Medicover (MCOV) Q1 2025 earnings summary

Executive summary

• Revenue grew 15.9% year-over-year to €578.1m, with organic growth of 14.1%; EBITDA and EBIT margins expanded by 1.6pp and 2.4pp, respectively.

• Annualised Q1 results already meet or exceed 2025 financial targets for revenue and adjusted EBITDA.

• Robust cash flow from operations reached €87.5m, representing 101.1% of EBITDA.

• Healthcare Services and Diagnostic Services both delivered double-digit organic growth and margin expansion.

• CEO transition announced, with John Stubbington succeeding Fredrik Rågmark.

Financial highlights

• Adjusted EBITDA increased to €90.6m (15.7% margin), up 29% year-over-year.

• EBIT nearly doubled to €36.0m (6.2% margin); EPS more than tripled to €0.134.

• Free recurring cash flow rose to €44.2m, 7.6% of revenue.

• ROIC improved to 8.3% from 6.7% at year-end 2024.

• Revenue rose to €578.1m from €498.8m year-over-year; acquired revenue contributed €3.2m.

Outlook and guidance

• Management expects continued strong performance, with acquisitions to drive further growth and margin accretion.

• Growth in India expected to recover in Q2 after a soft Q1.

• CapEx guidance for FY2025 remains at 5-6% of revenue, with a 60/40 split between growth and maintenance.

• Leverage expected to temporarily rise above 3.5x due to acquisitions, but projected to return to 3x or below by year-end.