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 consolidated EBITDA of R$2.3 billion (up 22.1%) and net income of R$1.0 billion (up 21.1%), reflecting strong growth in hospital and insurance segments and successful integration of SulAmérica.

• SulAmérica's net revenue surpassed R$8.0 billion, up 12.2% year-over-year, with an 8.5% increase in health and dental beneficiaries to 5.4 million.

• Operational cash flow rose 85.1% year-over-year to R$3.2 billion.

• Continued expansion of operational beds, reaching 10,148 at quarter-end, up 291 from year-end and 409 year-over-year.

• Expansion included the inauguration of Barra D'Or and consolidation of São Luiz Campinas in Atlântica D'Or.

Financial highlights

• Adjusted EBITDA, including insurance technical reserves, reached R$2.6 billion with a 20% margin; consolidated EBITDA margin for hospital services was 23.8%.

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

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

• Net debt stood at R$17.3 billion, with net debt/EBITDA at 1.7x, or 1.1x including technical provisions.

• Cash and equivalents at R$19.4 billion; gross debt at R$36.8 billion.

Outlook and guidance

• Expecting accelerated ramp-up of new assets, especially Atlântica D'Or, and continued organic project deliveries, with 40 projects (4,036 beds) planned for 2025–2028.

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

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

• Maintaining financial discipline, with flexibility for new investments and share repurchases.