National Medical Care Company (4005) Q2 2026 earnings summary

Executive summary

• Achieved record Q2 2026 revenue and net profit, driven by higher patient volumes and a rebound in GOSI activity, supporting H1 2026 revenue growth of 8% year-over-year.

• Operational improvements included higher inpatient and outpatient activity, improved case and payer mix, and margin recovery.

• Strategic focus on capacity optimization, operational excellence, digital transformation, and talent development initiatives.

• Expansion plans include new hospital openings and service-line additions, with disciplined M&A and greenfield projects in high-growth regions.

• Capacity utilization improved, with occupancy rising and average length of stay declining, supporting further growth.

Financial highlights

• Q2 2026 revenue rose 15% year-over-year to SAR 456 million; H1 2026 revenue reached SAR 844 million, up 8% year-over-year.

• Q2 2026 net profit grew 18% year-over-year to SAR 94 million (net margin 20.6%); H1 2026 net profit was SAR 146 million, down 11% year-over-year due to seasonal pressures in Q1.

• Q2 2026 gross margin recovered to 37.1%; EBITDA margin expanded to 29.5%.

• GOSI revenue rebounded 44% quarter-on-quarter in Q2 2026, reaching SAR 188 million; insurance revenue grew 23% year-over-year in H1 2026.

• Cost of revenue in H1 2026 increased 12% year-over-year, mainly from higher staff costs and consumables.

Outlook and guidance

• Management expects strong underlying demand to continue, with July patient and surgery volumes maintaining Q2 momentum.

• Expansion pipeline includes Al Narjis Hospital (400 beds, opening 2028) and Jeddah Greenfield project, with up to eight new facilities by 2032.

• Ongoing digital transformation and service-line expansion expected to drive future revenue and margin improvement.