Specialized Medical Company (4019) Q4 2025 earnings summary

Executive summary

• Achieved record revenue and profitability in FY 2025, driven by a strategic shift from long-term care to higher-margin acute inpatient and outpatient services, with 57 new clinics launched and LTC beds redeployed.

• IPO completed in June 2025, enhancing governance, capital structure, and transparency.

• Board recommended an ordinary cash dividend of SAR 80 million and approved a SAR 200 million special one-time dividend.

• Expanded network with the launch of the first standalone outpatient clinic in Al Malqa, Riyadh, operational from January 2026.

• Major expansion projects underway, including three new hospitals (SMC 3, 4, 5) and a 150-bed mental health facility under PPP.

Financial highlights

• FY 2025 net revenue grew 7.0% year-on-year to SAR 1,538.5 million; Q4 revenue up 24.4% year-on-year to SAR 406.9 million.

• EBITDA increased 25.0% year-on-year to SAR 416.5 million (27.1% margin); Q4 EBITDA at SAR 172 million (up 64.5% quarter-on-quarter, 166.8% year-on-year).

• Net profit rose 43.7% year-on-year to SAR 266.2 million (17.3% margin), including a SAR 60.6 million one-off gain from land sale.

• Excluding the one-off gain, EBITDA grew 6.8% to SAR 355.9 million and net profit rose 11.0% to SAR 205.6 million.

• Net debt/EBITDA improved to 1.4x from 2.3x, with operating cash flow at SAR 322.7 million and capex at SAR 94.5 million.

Outlook and guidance

• FY 2026 net revenue guidance: SAR 1.6–1.7 billion (+4.0% vs FY25, excluding one-off gain).

• EBITDA margin expected at 23–25%, net income margin at 14–16%.

• Operational targets: 581 inpatient beds and 350–360 outpatient clinics by year-end 2026.

• Net debt/EBITDA expected to rise to 2.3–2.7x due to expansion, but leverage to remain below 3x.

• Three new hospitals and a mental health facility to nearly triple capacity by 2029.