National Medical Care Company (4005) investor relations material

Executive summary

• Q1 2026 revenue was SAR 388 million, stable or up 1% year-over-year, with patient volumes up 9% despite Ramadan and Eid fully impacting the quarter.

• Net profit declined 39% year-over-year to SAR 52 million, mainly due to seasonal case mix shifts, lower-margin cases, and higher operating expenses.

• EBITDA fell 25% year-over-year to SAR 92 million, with margin at 23.6%.

• Strategic focus on capacity expansion, service-line growth, and digital transformation to strengthen market position.

• Al Haram and ReLib (mental health) facilities more than doubled their revenues year-over-year.

Financial highlights

• Gross profit margin decreased to 31.6% from 37.1% year-over-year; gross profit declined 14% to SAR 123 million.

• Operating expenses rose 30% year-over-year, mainly due to higher salaries, consumables, and general/admin costs.

• Operating cash flow was a net outflow of SAR 28 million, compared to an inflow of SAR 157 million in Q1 2025, driven by working capital movements.

• Net debt rose, mainly to fund Al Narjis Hospital construction and lease obligations for radiology equipment, reaching SAR 225 million as of March 31, 2026.

• Capex increased to SAR 52 million, primarily for Al Narjis Hospital and expansion projects.

Outlook and guidance

• Margin compression is viewed as seasonal and transitory, with expectations for normalization in case mix and payor activity in coming quarters.

• Management expects margins and case mix to recover as seasonal effects subside, with April already showing improvement.

• Ongoing negotiations with insurance providers for price increases and investments in new facilities and digital automation are expected to support future growth.

• No formal guidance provided, but ambition is to maintain historical gross margins around 36%.