Mouwasat likely to sustain revenue, net profit growth in Q2 2026: Exec

Khaled Al-Sulaim, Managing Director (MD) at Mouwasat Medical Services Co. 

Mouwasat Medical Services Co. expects the continued growth of revenues and net income during the second quarter of 2026, despite operational challenges, through absorbing market variables and the ability to overcome potential risks that may affect profit margins, said Managing Director (MD) Khaled Al-Sulaim.

In an interview with Argaam, the top executive said that the Saudi-listed company is looking to generate a higher second-quarter income growth rate than that of Q1 2026. This outlook is supported by increased operational efficiency and the rising revenue contribution of the new Yanbu hospital, in addition to the stable performance and growth of the company’s other hospitals.

“It is natural, within the cycle of expansion projects in the healthcare sector, for the company to bear high operational and startup costs when adding a new facility such as the Yanbu hospital, which is reflected in temporary pressures on profit margins due to the start of operations. This includes recruiting medical staff, preparing the operational infrastructure, and ensuring readiness before reaching optimal operating levels,” he said.

Al-Sulaim further indicated that both the inpatient and outpatient departments witnessed positive growth across all the company’s hospitals during the first quarter of this year. This reflected the diversification of revenue streams, with the inpatient sector acting as the primary growth driver, despite an increase in patient volumes in outpatient clinics and specialized procedures.

Mouwasat’s operational model managed to absorb much of the margin pressures resulting from the opening of the Yanbu hospital without a material impact on financial performance, relying on effective cost management, phased expansion, and operational experience, said the MD.

He expected the financial performance of the Yanbu hospital to accelerate gradually over the medium term, given the increasing occupancy rates and improved operational efficiency, noting that reaching the break-even point varies depending on local demographics. “We expect this to be achieved at a faster pace compared to previous projects, thanks to operational experience and high regional demand,” he added.

Additionally, the MD confirmed that the hospital’s initial operational performance aligned with plans in terms of the pace of operations, patient acquisition, and service readiness, alongside positive indicators supporting gradual and sustainable growth in the coming periods.

According to Argaam data, Mouwasat’s profits rose to SAR 201 million in Q1 2026, compared to SAR 197.1 million during the same period in 2025.