IHH Healthcare (IHH) Q4 2025 earnings summary

Executive summary

• Q4 2025 delivered resilient financial performance with revenue of MYR 6.8 billion and EBITDA of MYR 1.5 billion, both up 20% on a constant currency basis, driven by higher inpatient admissions and revenue intensity across 10 geographies.

• FY2025 revenue reached MYR 26.2 billion (+8% YoY, ex-MFRS129), EBITDA at MYR 5.8 billion (+5%), and PATMI (ex-EI) at MYR 2.3 billion (+3%).

• ROE improved to 9%, up 20bps year-over-year, with a target for double-digit ROE by 2028.

• Dividend for FY2025 increased by 5% to 10.5 sen per share, with payout ratio above 40% of PATMI.

• Growth in daycare and medical tourism segments, especially in Malaysia and India, supported by digital transformation and brownfield expansions.

Financial highlights

• FY2025 revenue reached MYR 26.2 billion and EBITDA MYR 5.8 billion, both at record highs; PATMI (ex-EI) at MYR 2.3 billion.

• On a constant currency basis, revenue and EBITDA grew 18%-20% and 15%-20% year-over-year.

• PATMI outperformed analyst consensus, closing at MYR 2.3 billion versus projected MYR 2 billion.

• Q4 EBITDA margin (ex-MFRS 129) was 22%, within guidance of 22%-24%.

• Cash balance as of 31 Dec 2025 was over MYR 1.5 billion; net debt/EBITDA at 2.4x, net debt/equity at 0.5x.

Outlook and guidance

• Entering 2026 with strong earnings momentum, robust balance sheet, and capacity-driven growth.

• Cautiously optimistic for 2026, expecting continued double-digit revenue growth on a constant currency basis.

• Malaysia expected to maintain double-digit growth, Singapore to stabilize and return to growth in H2 2026.

• India and Türkiye remain key growth markets, with ongoing integration and operational improvements.

• Ongoing transformation program to manage cost pressures, enhance productivity, and improve care delivery.