Specialized Medical Company (4019) Q1 2026 earnings summary

Executive summary

• Achieved resilient operational and financial performance in Q1 2026, with net profit up 9.8% year-over-year, driven by expansion of outpatient and acute care services despite seasonal headwinds.

• Completed transition from long-term care beds to higher-margin acute inpatient services and outpatient clinics, optimizing service mix and operational efficiency.

• Launched SMC Clinics in Al Malqa, with 14 clinics operational by March 2026 and further expansion planned toward 35 clinics by year-end.

• Strengthened balance sheet with net debt/EBITDA reduced to 1.7x and cash and cash equivalents up 66.6% year-over-year.

• Maintained strong focus on patient experience, technology integration, and operational continuity during expansion.

Financial highlights

• Net revenue grew 3.3% year-over-year to SAR 380.7 million, driven by improved utilization and new outpatient capacity.

• EBITDA increased 5.6% year-over-year to SAR 69.3 million, with margin rising to 18.2%; net profit rose 9.8% to SAR 32.5 million, with margin improving to 8.6%.

• Operating cash flow reached SAR 83.4 million; free cash flow was SAR 69.7 million; cash and cash equivalents stood at SAR 246.7 million as of March 31, 2026.

• Basic and diluted EPS for Q1 2026 was 0.13 SAR, up from 0.12 SAR in Q1 2025.

• Sequentially, net revenue declined 6.4% from Q4 2025 due to seasonality and absence of a one-off gain.

Outlook and guidance

• FY 2026 net revenue guidance: 1.6–1.7 billion SAR (+4.0% vs FY25); EBITDA margin: 23–25%; net income margin: 14–16%.

• Confident in meeting full-year guidance despite Q1 headwinds; closely monitoring for any material changes.

• CapEx guidance through 2029 exceeds SAR 3 billion, primarily for three new hospitals; capital commitments for ongoing projects total SAR 100.5 million as of March 31, 2026.

• Further rollout of SMC Clinics in Al Malqa expected throughout 2026, with full capacity of 35 clinics.

• Management is evaluating the impact of new IFRS standards effective in 2026 and 2027, with no significant impact expected.