Dr Sulaiman Al Habib Medical Group posted fiscal 2025 results on Sunday that were largely consistent with market expectations, with the company recording double-digit top-line growth alongside a modest margin contraction.
Top-line and profit - The group reported revenue of SAR 13,707 million for FY25, up 22% from the prior year. Operating profit rose 19% to SAR 2,619 million. While the operating profit gain was substantial in absolute terms, it fell slightly short of some broker projections - UBS had estimated SAR 2,648 million and consensus stood at SAR 2,684 million.
Margins and net income - Operating margin contracted to 19.1% from 21.0% in the prior year, missing estimates by 27 basis points. Net income for the year reached SAR 2,401 million, effectively matching UBS's SAR 2,399 million forecast but coming in a touch below the consensus figure of SAR 2,440 million.
Dividend and operational drivers - The company announced a fourth-quarter dividend of SAR 1.31 per share. Management attributed the revenue and operating profit expansion to higher patient volumes and increased occupancy across its hospitals and pharmacies.
Capacity additions and ramp-up - In 2025 the group added three hospitals to its portfolio - Al-Hamra, Al-Kharj, and Al Muhammadiyah. Those facilities are still in the ramp-up stage; the company expects their contribution to revenue to grow as they move toward full utilization.
Analyst view and market metrics - UBS maintains a Neutral rating on the stock and has set a price target of SAR 290.00. Based on the current market price of SAR 259.80, UBS's target implies a potential upside of roughly 11.6%.
The set of results presents a mixed picture: robust revenue and operating profit growth driven by demand-side improvements, but some pressure on margins and modest shortfalls versus consensus operating-profit expectations. The newly opened hospitals provide a near-term growth runway, though their returns depend on continued increases in occupancy as they scale up operations.