IHH Healthcare Berhad (IHH) Q3 2025 earnings summary

Executive summary

• Q3 2025 delivered double-digit revenue and EBITDA growth on a constant currency basis, with reported revenue up 16–18% and EBITDA up 16–18%, despite significant currency translation losses and macroeconomic headwinds.

• Growth was driven by higher inpatient admissions, increased revenue intensity, day care expansion, medical tourism, and contributions from recent acquisitions such as Fortis and Bayindir.

• PATMI rose 15% to RM616 million in Q3, but PATMI excluding exceptional items declined 13% due to higher costs, depreciation, and FX impacts.

• Major milestones included the completion of the Fortis acquisition in India, full reopening of Mount Elizabeth Orchard in Singapore, and expansion of ambulatory care centers in Singapore and Hong Kong.

• Robust balance sheet supported by a MYR 2.3–2.35 billion AAA-rated sukuk issuance, refinancing debt and reducing interest costs by 30 basis points.

Financial highlights

• Q3 2025 revenue reached RM6.6–6.57 billion (+16–18% YoY constant currency); EBITDA was RM1.5–1.513 billion (+16–18% YoY constant currency).

• Year-to-date 2025 revenue was RM19.2 billion (+8% reported, +18% constant currency); EBITDA RM4.2 billion (+5% reported, +13% constant currency).

• PATMI for Q3 2025 was RM616 million (+15%), but PATMI excluding exceptional items was RM462 million (-13%).

• EBITDA margin for Q3 was 23%, within the 22–24% guidance range; core PATMI margin at 9%.

• Net debt as of September 2025 was MYR 14 billion (MYR 11.1 billion excluding P-Life REIT), with net debt/EBITDA at 2x and net debt/equity at 0.3x.

Outlook and guidance

• Cautiously optimistic outlook for the remainder of 2025, with continued growth expected in day care, medical tourism, and digital health.

• Margins expected to remain within guided ranges; focus on operational efficiency, prudent capital expenditure, and digital transformation.

• CapEx guidance for 2026–2027 revised to low MYR 2 billion, reflecting a shift toward day care and ambulatory centers.

• Bed expansion plans remain flexible, with 1,000 beds added in the past year and ongoing adjustments for market shifts.

• Group remains agile to adapt to evolving healthcare trends and payor dynamics.