Specialized Medical Company (4019) Q4 2025 earnings summary

Executive summary

• Achieved record operational and financial progress in FY 2025, with a strategic shift from long-term care to higher-margin acute and outpatient services, supported by the launch of 57 new clinics and successful IPO.

• Net profit reached SAR 266.2 million, up 43.7% year-over-year, including a SAR 60.6 million one-off gain from a land sale.

• Board recommended an ordinary cash dividend of SAR 80 million and distributed a SAR 200 million special dividend.

• Expanded network with the launch of the first standalone outpatient clinic in Al Malqa, Riyadh, and continued investment in new hospitals and clinics.

• Post-period, SMC Clinics in Al Malqa commenced operations in January 2026, expanding outpatient footprint in northern Riyadh.

Financial highlights

• Net revenue grew 7% year-over-year to SAR 1,538.5 million for FY 2025; Q4 net revenue up 24.4% year-over-year to SAR 406.9 million.

• EBITDA increased 25% year-over-year to SAR 416.5 million, with margin expanding to 27.1%.

• Net profit margin reached 17.3% for FY 2025; Q4 net profit margin at 32.9%.

• Net debt to EBITDA improved to 1.4x from 2.3x, and debt-to-equity ratio decreased to 44.9%.

• CapEx for FY 2025 totaled SAR 94.5 million, mainly for new clinics and expansion projects.

Outlook and guidance

• FY 2026 net revenue expected between SAR 1.6–1.7 billion, with EBITDA margin of 23%–25% and net income margin of 14%–16%.

• Revenue growth guidance at 4% (low end), with potential upside as new clinics ramp up.

• Leverage expected to remain below long-term guidance of 3x, though net debt/EBITDA may rise to 2.3–2.7x due to expansion.

• Three new hospitals (SMC 3, 4, 5) in development, expected to nearly triple capacity by 2029.

• 150-bed mental health facility under PPP to commence operations by Q4 2026.