Dallah Health H1 2026 profit falls 34% to SAR 184.5M; Q2 at SAR 100M

Dallah Healthcare Co. reported a 34% year-on-year (YoY) decline in net profit to SAR 184.5 million in the first half of 2026, down from SAR 279.8 million in H1 2025.

The company attributed the decline in first-half profit to higher operating and financing costs, despite stronger revenue growth.

Recurring operating expenses rose by SAR 44.5 million, mainly due to the consolidation of Dallah Al Khobar Hospital and Dallah Al Ahsa Hospital into the group's financial statements from March 23, 2025.

Finance costs increased by SAR 24.06 million, reflecting the consolidation of financing expenses related to the two hospitals and borrowing associated with the group's acquisition strategy.

The first half of 2025 included non-recurring gains from a SAR 12.5 million reversal of zakat provisions following the completion of zakat assessments through 2023, as well as SAR 51.4 million in gains from an investment in a real estate fund.

By contrast, the first half of 2026 included SAR 15.3 million in operating costs related to Mina Emergency Hospital during the Hajj season. Together, these one-off items resulted in a SAR 79.2 million YoY impact on net profit.

Revenue rose 11.9% to SAR 2.12 billion in the first half, driven by a 17.2% increase in patient visits across the group's hospitals and medical centers. Total visits reached 1.98 million, up from 1.67 million a year earlier.

The Eastern Region contributed 73.8% of the increase in patient visits, followed by the Central Region at 21.8% and the Western Region at 4.4%. Revenue also benefited from an improved mix of medical services and continued growth in specialized healthcare services.

Revenue at Dallah Al Khobar Hospital and Dallah AlAhsa Hospital more than doubled, rising 112.2% YoY.

Gross profit increased by SAR 47.95 million, while adjusted EBITDA, excluding non-recurring items, rose 5.02% to SAR 430.7 million from SAR 410.1 million a year earlier.

In Q2 2026, Dallah Health posted a 20% YoY drop in net profit to SAR 100 million from SAR 124.26 million in Q2 2025 as financing costs increased by about SAR 6.9 million.

Compared with Q1 2026, net profit rose 18.3% from SAR 54.52 million.

Total shareholders’ equity, after excluding minority interest, stood at SAR 4.130 billion as on June 30, 2026, compared with SAR 4.13 billion a year earlier.

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