Specialized Medical Company (4019) Q3 2025 earnings summary

Executive summary

• Achieved strong operational and financial progress in Q3 2025, with a strategic shift toward high-margin acute and outpatient services, cost optimization, and improved collections.

• Outpatient visits rose 12.1%–12% year-on-year to 353,000 in Q3, driving 13.4% growth in outpatient clinic revenue.

• Net profit increased 12.4% year-on-year to SAR 66.2 million, with a margin of 17.3%.

• Launched a new mobile app and integrated advanced digital technologies; new outpatient clinic center in Al Malqa District with 35 clinics set to open in H1 2026.

• Announced a SAR 200 million special one-time cash dividend, reflecting strong cash generation and financial health.

Financial highlights

• Q3 2025 gross revenue reached SAR 465.3 million (+9.5% YoY); net revenue was SAR 382.7 million (-2.2% YoY) due to timing of contractual obligations.

• EBITDA rose 8.4% year-on-year to SAR 104.6 million, with margin expanding to 27.3% (+2.7pp).

• Operating cash flow surged 58.8% to SAR 107.9 million; free cash flow nearly doubled to SAR 85 million.

• Net debt to EBITDA improved to 2.0x, down from 2.4x a year ago; debt-to-equity ratio at 62.1%.

• Capital expenditure totaled SAR 23 million in Q3 2025, mainly for new clinics and hospital projects.

Outlook and guidance

• Full-year 2025 guidance reaffirmed: net revenues SAR 1.6–1.8 billion, EBITDA margin 23–26%, net profit margin 17.5–19%, net debt/EBITDA 2.3–2.5x.

• Plan to maintain 578 inpatient beds and ramp up to 326 clinics by year-end; 19 additional clinics and a 35-clinic center in Al Malqa to open by 2026.

• Multi-year growth strategy includes tripling capacity by 2029 with three new hospitals in northern Riyadh.

• Anticipate further price increases in early 2026 as part of ongoing contract negotiations.

• 150-bed mental health facility to commence operations by end of H1 2026 under PPP.