Specialized Medical Company (4019) Q4 2025 earnings summary

Executive summary

• Achieved strong operational and financial progress in 2025, with record revenue and profitability driven by a strategic shift to higher-margin acute and outpatient services.

• IPO completed in June 2025, enhancing governance, capital structure, and visibility among institutional investors.

• Expanded network with the launch of the first standalone outpatient clinic in Al Malqa, Riyadh, ahead of schedule, and opened 57 new outpatient clinics during the year.

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

Financial highlights

• Net revenue grew 7% year-on-year to SAR 1.54 billion for 2025; Q4 net revenue up 24.4% year-on-year to SAR 406.9 million.

• EBITDA increased 25% year-on-year to SAR 416.5 million, with margin expanding to 27.1%; Q4 EBITDA up 166.8% year-on-year to SAR 172.0 million (42.3% margin), both including a SAR 60.6 million one-off gain.

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

• Excluding the one-off gain, FY 2025 EBITDA rose 6.8% and net profit 11.0% year-on-year.

• Net debt to EBITDA improved to 1.4x from 2.3x year-on-year.

Outlook and guidance

• 2026 net revenue expected between SAR 1.6–1.7 billion, reflecting 4% growth at the low end.

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

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

• 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.