Rede D'Or São Luiz (RDOR3) Q3 2025 earnings summary

Executive summary

• Revenue reached BRL 15.6 billion in Q3 2025, up 10.6% year-on-year, with EBITDA at BRL 2.9 billion, up 15.6% year-on-year, and net income at BRL 1.5 billion, nearly 20% growth year-on-year.

• Achieved record patient-day volume of 784,000 in Q3 2025, up 10.1% year-on-year, and a record 157,000 surgeries, up 21.3% year-on-year and 15% sequentially.

• Hospital occupancy reached 81.6%, a record for the quarter, up 3.0 percentage points year-on-year.

• SulAmérica's net revenue reached BRL 8.5 billion, up 10.8% year-on-year, with a 10.1% increase in health and dental beneficiaries.

• Operational cash flow for the first nine months was BRL 6 billion, up 22.6% year-on-year, and leverage reduced to 1.54x net debt/EBITDA, 0.4x lower than Q3 2024.

Financial highlights

• Hospital services gross revenue in Q3 was BRL 9.4 billion, up 16.2% year-on-year, with average ticket up 5.6% and patient days up over 10%.

• Oncology segment Q3 gross revenue was BRL 1.55 billion, up 28.1% year-on-year, with average ticket up 10.4% and volume up 16%.

• Administrative expenses for hospitals, oncology, and others fell 17.2% year-on-year to BRL 253.4 million, representing 2.7% of gross revenue.

• SulAmérica's adjusted EBITDA was BRL 1.02 billion, up 68.1% year-on-year; loss ratio improved by 2.0 percentage points to 80.1%.

• Gross profit for hospitals, oncology, and others was BRL 2.13 billion, up 23.5% year-on-year, with a gross margin of 25.7%.

Outlook and guidance

• Over 30 organic expansion projects underway, expected to deliver 3,203 beds between 2025 and 2028.

• Management expects continued efficiency gains from ongoing system integration and automation, with further productivity improvements mapped.

• Hospital and oncology segments are expected to maintain strong growth, with further ramp-up of beds and operational leverage.

• No specific margin guidance provided, but management is optimistic about further efficiency and margin expansion opportunities.

• Plans to reach 74 consumer units operating in the Free Energy Market with renewable energy by 2025.