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 and strategic shift from long-term care to higher-margin offerings.

• Launched SMC Clinics in Al Malqa, with 14 clinics operational by March 2026 and further expansion planned throughout the year.

• Maintained strong focus on patient experience, technology integration, and clinical excellence, receiving multiple awards and accreditations.

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

• Interim condensed consolidated financial information reviewed for Q1 2026, with no material misstatements identified by the independent auditor.

Financial highlights

• Net revenue grew 3.3% year-over-year to SAR 380.7 million, with EBITDA up 5.6% to SAR 69.3 million and net profit rising 9.8% to SAR 32.5 million; margins improved to 18.2% (EBITDA) and 8.6% (net profit).

• 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.

• 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 from land sale in Q4.

• Net debt decreased 10.9% year-over-year to SAR 719.9 million; debt/equity ratio reduced to 53% from 74%.

Outlook and guidance

• FY 2026 guidance unchanged: net revenue targeted at 1.6–1.7 billion, EBITDA margin at 23–25%, and net income margin at 14–16%.

• CapEx guidance through 2029 exceeds SAR 3 billion, primarily for three new hospitals, funded by debt and internal cash flows.

• Management remains confident in meeting full-year guidance despite Q1 seasonality and regional uncertainties, with ongoing monitoring for material changes.

• Committed to multi-year growth strategy focused on expanding integrated healthcare platform and optimizing service mix.

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