Sulaiman Al Habib Q1 2026 profit falls 10% to SAR 503.3M

The group attributed the decline in earnings primarily to pressure on margins from fixed costs tied to its strategic expansions, including higher depreciation and bank financing costs (FCs).

These expansions added 2,000 beds across 2024 and 2025 and are still in the ramp-up phase, with revenue contribution expected to grow gradually as they reach targeted operating levels.

The Q1 2025 period was, however, impacted by seasonal factors that affected annual revenue growth.

The top line rose 8.8% to SAR 3.43 billion in Q1 2026, compared to SAR 3.15 billion in Q1 2025. The growth was mainly driven by stronger performance across key segments —hospitals, pharmacies, and solutions — supported by higher patient volumes.

As part of its ongoing expansion strategy, the group continued to grow its network by launching new hospitals in key locations.

In 2024, it began operations at Al Fayhaa Hospital in Jeddah, Al Sahafa Hospital in Riyadh, and the Women’s Health Hospital in Riyadh, adding around 1,200 beds. This was followed by the opening of Al Hamra Hospital in Riyadh, Al Kharj Hospital, and Al Muhammadiyah Hospital in Jeddah, which together contributed an additional 800 beds in 2025.

Meanwhile, EBITDA rose by 4.59% in Q1 2026 to SAR 853.52 million, compared to SAR 816.05 million in the same period last year, with an EBITDA margin reaching 24.84%.

Total shareholders’ equity (excluding minority interest) rose to SAR 7.94 billion as of March 31, 2026, compared to SAR 7.29 billion a year ago.

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