Specialized Medical Company (4019) Q4 2025 earnings summary

Executive summary

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

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

• Board recommended an ordinary cash dividend of SAR 80 million and approved a special one-time dividend of SAR 200 million for FY 2025.

• Expanded network with the launch of the first standalone outpatient clinic in Al Malqa, Riyadh, ahead of schedule, with 35 clinics operational by January 2026.

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

Financial highlights

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

• EBITDA increased 25.0% year-on-year to SAR 416.5 million, with margin expanding to 27.1%.

• 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, 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, and debt-to-equity ratio decreased to 44.9%.

Outlook and guidance

• FY 2026 net revenue expected between SAR 1.6–1.7 billion, reflecting at least 4% growth.

• 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.

• Leverage expected to remain below 3x despite expansion-related drawdowns; net debt/EBITDA may rise to 2.3–2.7x.

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