National Medical Care Company (4005) Q2 2025 earnings summary

Executive summary

• Revenue grew 32% year-over-year in 1H 2025 to SAR 783 million, driven by record patient volumes, successful integration of Al Salam Hospital, and expansion of new branches and services.

• Net profit increased 10% year-over-year to SAR 165 million, with a margin of 21.1%, despite a high base from a one-off Zakat provision reversal in 1H 2024.

• EBITDA rose 36% year-over-year to SAR 233 million, with margin improving to 29.8%.

• Bed capacity expanded 16% year-over-year to 1,174 beds, and occupancy rates reached 80.9% in 1H 2025.

• Strategic focus remains on expanding services, efficiency improvements, digital automation, and diversification of revenue streams.

Financial highlights

• Revenue reached SAR 783 million in H1 2025, up 32% year-on-year; gross profit increased 33% to SAR 290 million, with a margin of 37.1%.

• EBITDA margin improved to 29.8%; net profit margin at 21.1%; operating profit (EBIT) grew 33% to SAR 182 million.

• Cash and equivalents stood at SAR 477 million as of June 30, 2025; net debt reduced by 70% year-to-date to SAR 23 million.

• Net cash from operations improved to SAR 80 million in H1 2025, reversing a negative SAR 17 million last year.

• Capex for H1 2025 was SAR 48 million, focused on facility improvements and medical equipment.

Outlook and guidance

• Management expects continued growth from insurance, GOSI, and MOH segments, with price increases under negotiation for upcoming insurance contract renewals.

• Gross profit margin of 37% and above is expected to be sustainable in the near future.

• Ongoing investments in digital automation, operational efficiency, and expansion through new facilities and M&A pipeline are anticipated to further enhance margins and patient volumes.

• The 400-bed Nerges Hospital in Riyadh is on track for phased launch in 2028, targeting the premium segment.

• Management notes that interim results may not be indicative of full-year performance.