Saudi German Health sees revenue growth in 2026, margins to improve slightly: CEO

Bahabri said that the softer Q1 2026 performance will primarily be due to the holy month of Ramadan and Eid Al-Fitr falling fully in the January to March period, compared to a partial impact in Q1 2025.

Q4 2025 results included losses of SAR 11 million related to Sobhi Abdul Jalil Batterjee Hospital, which commenced operations in the same quarter, he said. Saudi German Health holds a 22% stake in the hospital.

However, Q4 2024 included a non-recurring exceptional gain of SAR 45 million resulting from Zakat restructuring. Excluding non-recurring items in both periods, adjusted net profit declined by only 28%, he stated.

Bahabri said the 8% annual revenue growth in Q4 2025 was not fully reflected in net profit due to higher operating expenses associated with expansion plans, as more than 400 Saudi specialized physicians were recruited across the group’s hospitals last year.

The expansion is expected to gradually support revenue growth in the coming periods, said Bahabri, highlighting that the company has adopted more than 53 training programs accredited by the Saudi Commission for Health Specialties.

Revenue from pharmacies and pharmaceutical distribution segment reached SAR 408 million in 2025, representing 13% of total revenue.

In terms of operating indicators, Bahabri said the company recorded notable growth in patient numbers across both inpatient and outpatient departments. Inpatient volumes rose by 15% by the end of Q4 2025, compared to Q4 2024, while outpatient visits increased by 6% year-on-year (YoY).

Saudi German Health’s operational capacity stands at nearly 1,500 beds across eight hospitals and two outpatient centers, distributed across seven major cities in the Kingdom.

According to Argaam data, the company’s net profit increased to SAR 301.9 million in 2025, from SAR 282 million a year earlier. Q4 profit reached SAR 37.8 million (-66%).