Specialized Medical Company (4019) investor relations material

Executive summary

• Achieved strong operational and financial progress in Q3 2025, with continued execution of a strategic shift toward high-margin acute and outpatient services, supported by cost optimization initiatives.

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

• Outpatient visits rose 12% year-on-year to 353,000 in Q3, and acute inpatient nights grew 8.9%, reflecting ramp-up of new clinics and conversion of LTC beds.

• Launched a new mobile app and integrated advanced digital technologies across facilities.

• Special one-time cash dividend of SAR 200 million approved, highlighting strong financial health and shareholder commitment.

Financial highlights

• Gross revenues grew 9.5% year-on-year to SAR 465 million in Q3 2025, while reported revenue was 382.7 million, down 2.2% due to payor mix and contractual obligations.

• EBITDA rose 8.4% year-on-year to SAR 104.6 million, with margin expanding to 27.3%.

• Operating cash flows increased nearly 59% to SAR 107.9 million; free cash flow nearly doubled to SAR 85 million.

• Net debt to EBITDA improved to 2x, down from 2.4x a year ago.

• General and administrative expenses fell 54% year-on-year due to cost efficiencies and improved collections.

Outlook and guidance

• Reiterated full-year 2025 guidance: net revenues SAR 1.6–1.8 billion, EBITDA margin 23–26%, net profit margin 17.5–19%.

• Multi-year growth strategy on track, with plans to triple inpatient and outpatient capacity by 2029 through three new hospitals in northern Riyadh.

• 19 additional outpatient clinics to open by year-end 2025, and a 35-clinic outpatient center in Al Malqa District will launch in Q1 2026.

• A 150-bed mental health facility is set to commence operations by end of H1 2026 under a public-private partnership.

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