Specialized Medical Company (4019) Q2 2025 earnings summary

Executive summary

• Achieved SAR 380 million in Q2 2025 revenue, up 6.6% YoY, driven by growth in acute and outpatient services and a strategic shift away from LTC.

• Outpatient clinic visits reached 344,000 in Q2 2025, up 20% YoY, while inpatient visits declined 24.5% due to LTC phase-out.

• Successfully listed on the Saudi Exchange in June 2025, marking a significant milestone and transition to a public joint stock company.

• Operates multiple branches and subsidiaries in Saudi Arabia, focusing on hospital management, clinics, medical centers, and food services.

• Principal activities include healthcare and catering, with deepened partnerships with insurers to expand access for insured patients.

Financial highlights

• Q2 2025 EBITDA declined 15.2% YoY to SAR 74.3 million due to higher staff costs and one-off IPO/rebranding expenses; EBITDA margin contracted to 19.5%.

• Net profit for Q2 2025 fell 28.6% YoY to SAR 36.4 million, mainly due to elevated expenses and one-off costs; net profit margin at 9.6%.

• H1 2025 net revenue grew 4.1% YoY to SAR 748.9 million; net profit for H1 2025 was SAR 66.0 million, down from SAR 100.1 million in H1 2024.

• Cash and cash equivalents increased to SAR 252.3 million as of June 30, 2025, from SAR 92.5 million at year-end 2024.

• Total assets grew to SAR 2.35 billion from SAR 2.04 billion at year-end 2024.

Outlook and guidance

• FY 2025 guidance reiterated: net revenue SAR 1.6–1.8 billion, net income margin 17.5–19%, EBITDA margin 23–26%, Net Debt/EBITDA 2.3–2.5x.

• Plans to open 19 more outpatient clinics by end of 2025, completing a total of 60 new clinics.

• Three new hospitals in northern Riyadh expected to be operational between 2027 and 2029, nearly tripling capacity.

• 150-bed mental health facility under PPP with Ministry of Health on track for 2026 launch.

• Margins expected to normalize in H2 2025 as transitional and one-off costs subside.