Specialized Medical Company (4019) Q2 2026 earnings summary

Executive summary

• Achieved strong Q2 2026 results with net profit up 24.2% year-over-year and margin expansion, driven by higher patient activity and operational efficiency.

• Revenue for Q2 2026 reached 401.3 million, up 5.7% year-over-year; H1 2026 revenue was 782.0 million, up 4.5% year-over-year.

• Distributed an ordinary cash dividend of 80 million for FY 2025 on June 4, 2026.

• Expanded digital and AI initiatives, enhancing patient experience and operational efficiency.

• Advanced expansion projects, including new hospitals and a PPP mental health facility.

Financial highlights

• Net profit for Q2 2026 was 45.2 million, up 24.2% year-over-year; H1 2026 net profit was 77.7 million, up 17.8%.

• EBITDA for Q2 2026 grew 11.4% year-over-year to 82.8 million, with margin expanding to 20.6%.

• Free cash flow improved to 46.1 million in Q2 2026 from -71.4 million in Q2 2025.

• Operating cash flow in Q2 2026 was 68.2 million, a turnaround from -43.5 million in Q2 2025.

• Capital expenditures totaled 22.0 million in Q2 2026, down 21% year-over-year.

Outlook and guidance

• FY 2026 net revenue guidance maintained at 1.6–1.7 billion.

• EBITDA margin guidance widened to 22–26%; net income margin guidance widened to 13.5–16.5%.

• Capacity expansion continues with three new hospitals and a polyclinic in Northern Riyadh.

• New PPP contract signed for a 150-bed mental health hospital, with operations expected in Q2 2027.

• Long-term plans involve new hospitals in northern Riyadh, expected to nearly double capacity by 2028-2029.