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, organic growth, and successful integration of Al Salam Hospital and new branches.

• 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 on expanding services, operational efficiency, digital transformation, and integrating acquisitions underpinned performance.

Financial highlights

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

• EBITDA increased 36% year-on-year to SAR 233 million (margin 29.8%); net profit grew 10% to SAR 165 million (margin 21.1%).

• Operating profit (EBIT) grew 33% year-over-year to SAR 182 million, margin at 23.3%.

• Cash and equivalents stood at SAR 477 million as of June 30, 2025, up from SAR 263.8 million at year-end 2024.

• Net debt reduced by 70% year-to-date to SAR 23 million.

Outlook and guidance

• Major insurance contracts up for renewal end of 2025 and mid-2026, with ongoing negotiations for price increases.

• Al Narjis Hospital (400 beds) on track for phased launch in Q1 2028, targeting premium segment.

• Continued focus on expansion through new facilities, M&A pipeline, and bed capacity increases.

• Management expects continued growth in GOSI and insurance segments, with room for further efficiency and margin improvement.

• No significant seasonality or cyclicality impacts are expected.