Fakeeh Care Q3 Profit Falls 45.9% Despite 19.7% Revenue Growth

Fakeeh Care Group (TASI: 4017) reported profit attributable to shareholders of SAR 38.7 million for the third quarter of 2026, down 45.9% from SAR 71.6 million a year earlier. Revenue rose 19.7% to SAR 931.3 million, according to the company’s earnings release dated November 5.

Acquisition lifts revenue as financing costs rise

The quarter included Dr. Mohammed Al Fagih Hospital’s results from July 2026. Excluding that acquisition, group revenue grew 5%, compared with the reported increase of about 20%. The distinction matters when assessing growth from the existing operating base.

Operating profit fell 5% to SAR 70.4 million. Finance costs increased to SAR 35.5 million from SAR 14.1 million, while depreciation and amortization also rose. Management attributed the gap between revenue growth and bottom-line performance partly to the acquisition’s financing and depreciation costs.

New facilities reach an operating milestone

The group’s New Business segment recorded positive EBITDA of about SAR 6 million, against a SAR 30 million loss a year earlier. Group EBITDA increased 10.1% to SAR 137.6 million, although its margin narrowed to 14.8% from 16.1%. EBITDA is distinct from net profit.

For the first nine months, attributable profit fell 40.2% to SAR 135.1 million, while revenue increased 7.1% to SAR 2,454.3 million.

What are investors watching?

The November 5 results put the conversion of expansion-driven revenue into shareholder earnings in focus. The company says its priority is sustainable profitability and cash generation, with further beds entering service in line with demand and staffing.

For investors, improving utilization could help absorb the larger fixed-cost base. The financial benefit remains conditional on operating performance and financing costs; revenue growth alone does not establish a recovery in net profit.

Illustrative image of a modern hospital; it does not depict a specific Fakeeh facility.

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