SMC eyes SAR 1.7B revenue in 2026 as Saudi market grows: Exec

Logo of Specialized Medical Co. (SMC) 

Specialized Medical Co. (SMC) views the Saudi market, particularly Riyadh, as a high-growth market, supported by population growth and rising numbers of people migrating to Riyadh for work, Director of Investor Relations Faisal Altimyat said.

In an interview with Al Arabiya, he said Riyadh currently has around 2.1 beds per 1,000 people, compared with a global average of more than four beds per 1,000 people.

He noted that the government’s direction is to raise the ratio to 2.7 beds per 1,000 people by 2030.

Altimyat explained that this supply-demand gap is one of the key drivers for SMC and other companies expanding to build and operate more hospitals in Riyadh.

Regarding financial performance, he said the 24% profit growth recorded in Q2 2026 is sustainable, expecting momentum to continue in H2 2026, with margins and hospital profitability typically improving during this period.

Profit margin stood at around 10% in Q2 2026, while full-year guidance ranges between 12% and 15%, Altimyat added, noting that the company expects the lower operating cost rates recorded in Q2 to be sustained.

SMC’s annual guidance calls for total revenue of between SAR 1.6 billion and SAR 1.7 billion, with an EBITDA margin of 22% to 25%, he said, expecting significant improvement in H2 2026.

He further noted that the company does not focus on revenue per patient due to differences in the nature of services provided to inpatients and outpatients, adding that growth in patient volumes is the main driver of revenue growth.

Patient visits increased by around 10% in Q2 2026, contributing significantly to higher revenue and profitability, with momentum expected to continue in H2 2026.

Speaking on expansion, Altimyat said the company operated 340 clinics in H1 2026 and is targeting to reach approximately 360 clinics by year-end, through the opening of 20 new clinics in H2 2026 across SMC Hospital 1 and 2, and Al Malqa Clinics.

He added that new clinics typically require between eight months and one year to reach break-even and optimal utilization.

Meanwhile, Altimyat stated that the behavioral healthcare and mental health hospital project is a specialized mental health and addiction treatment facility, based on a public-private partnership to manage and operate the hospital.

He added that the project is being implemented through a consortium in which SMC holds a 51% stake, a German investor specializing in mental health holds 40%, and Saudi Health Gateway Co. holds 9%.

He said the hospital management and operation contract runs for 15 years, with required operational efficiency expected to be achieved starting in 2028.

The project will contribute to SMC’s overall profitability from its second year, Altimyat said.