Rede D'Or São Luiz (RDOR3) Q1 2025 earnings summary

Executive summary

• Gross revenue reached R$14.1 billion in Q1 2025, up 6.8% year-over-year, with EBITDA of R$2.3 billion, a 22.1% increase, and net income of R$1.0 billion, up 21.1% year-over-year.

• SulAmérica's integration contributed to consolidated results, with net revenue surpassing R$8.0 billion, up 12.2% year-over-year, and membership growing 8.5% to 5.4 million beneficiaries.

• Operational cash flow rose 85.1% year-over-year to R$3.2 billion, supporting flexibility for investments and share repurchases.

• Expansion included the inauguration of Barra D'Or, consolidation of São Luiz Campinas in Atlântica D'Or, and continued growth in operational beds.

• The business combination with SulAmérica continues to impact results, integrating insurance and asset management segments.

Financial highlights

• Adjusted EBITDA, including technical reserves, reached R$2.6 billion with a 20% margin; consolidated EBITDA was R$2.3 billion, up 22.1% year-over-year.

• SulAmérica's adjusted EBITDA reached R$986.3 million, up 106.4% year-over-year.

• Hospital services gross revenue was R$7.9 billion, up 6.8% year-over-year; oncology segment gross revenue was R$869 million, up 16.5%.

• Net debt/EBITDA ratio improved to 1.7x, with net debt at R$17.3 billion and gross debt at R$36.8 billion.

• Administrative expenses held at 4.2% of revenue; cost with materials and medicines at 19.5% of gross revenue.

Outlook and guidance

• Ongoing organic expansion with 40 projects (4,036 beds) planned for delivery between 2025 and 2028.

• Expecting accelerated ramp-up of new assets, especially Atlântica D'Or, and continued delivery of organic projects.

• Portfolio price adjustments and beneficiary growth expected to support continued revenue expansion.

• Anticipates stronger bed growth in Q2 2025 due to ramp-up of new units, with seasonality expected to differ from previous years.

• Maintaining financial discipline and flexibility to pursue both organic and inorganic growth opportunities.