Fakeeh Care net profit drops 38% to SAR 96.3M in H1 2026; Q2 down 29% to SAR 57.9M

The company attributed the H1 2026 profit decline to lower revenues from home healthcare and mature operations, alongside reduced volumes in management contracts. Earnings were further weighed down by higher depreciation and non-recurring costs from acquisitions, as well as pre-operating expenses for DSFMC- Alawali in Makkah, which opened in August 2026.

Higher net finance costs—driven by larger loan balances, expensing previously capitalized interest for the Madinah hospital, and new land leases in Madinah and Jazan—also squeezed margins.

These headwinds came despite a 0.7% YoY revenue rise to SAR 1.523 billion (or +5.5% excluding a one-off Q2 2025 Hajj contract).

Operational growth remained solid, with patient visits up 3% and surgeries jumping 22%. Additionally, new assets in Riyadh and Madinah delivered an 86% YoY revenue surge.

The company’s Q2 2026 net profit declined 29.5% YoY to SAR 57.9 million, compared with SAR 82.12 million in Q2 2025.

The decline was mainly attributed to lower revenue from home healthcare and mature operations, as well as a decrease in management contract volumes. Profitability was also impacted by higher depreciation expenses at the Madinah hospital, non-recurring acquisition costs, pre-operating expenses for DSFMC Alawali in Makkah, which commenced operations in August 2026, and higher net finance costs due to increased borrowings, expensing previously capitalized interest related to the Madinah hospital, and new land leases in Madinah and Jazan.

This came despite Q2 revenue of SAR 799 million, down 1.6% YoY; excluding the one-off Hajj contract in Q2 2025, revenue would have increased 7.6%. Operational performance remained strong, with patient volumes rising 4% and surgeries increasing 26%, while revenue from new operations in Riyadh and Madinah surged 93% YoY.

On a quarterly basis, net profit increased 50.8% from SAR 38.41 million in Q1 2026.

Total shareholders’ equity (excluding minority interest) stood at SAR 3.19 billion as of June 30, 2026, compared with SAR 3.03 billion in the year-earlier period.

Separately, the company obtained General Authority for Competition (GAC) approval on June 14 to acquire 100% of Dr. Mohammed bin Rashed Al-Faqih & Partners Co. for a total cash consideration of SAR 1.59 billion.

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