Saudi German Health swings to 36.68 million riyal quarterly profit, stock jumps 9.98%

Summary

• Saudi German Health posted a 36.68 million riyal third-quarter profit after a restated 89.66 million riyal loss.
• Quarterly revenue rose 14.08% to 877.15 million riyals on surgical and specialist care expansion.
• Shares climbed 9.98% to 25.24 riyals as the operating line returned to positive territory.

The latest

A third-quarter net profit of 36.68 million riyals replaced a restated loss of 89.66 million riyals a year earlier at Middle East Healthcare, operator of Saudi German Health, according to its disclosure on the Saudi Exchange. Revenue for the quarter reached 877.15 million riyals. The stock rose 9.98% to 25.24 riyals in Sunday trading as the filing circulated.

Details

• The quarterly numbers: Net profit attributable to shareholders reached 36.68 million riyals in the third quarter, against a restated net loss of 89.66 million riyals in the same quarter of 2025, according to the Saudi Exchange filing. The result was 6.783% above the 34.35 million riyals booked in the second quarter of 2026.
• Revenue trajectory: Third-quarter revenue rose to 877.15 million riyals from 768.89 million riyals, a gain of 14.08%, and was 3.74% above the 845.52 million riyals recorded in the preceding quarter, the company said in its filing covering the period ended 30 September 2026.
• Operating swing: Operating profit turned positive at 96.93 million riyals, compared with an operating loss of 33.13 million riyals a year earlier. The gross margin improved to 32.3% from 31.5% against the previous quarter, which the company attributed to a higher volume of sub-specialty procedures.
• Nine-month picture: Across the first nine months, net profit rose 8.324% to 104.49 million riyals from 96.46 million riyals, and revenue rose 8.478% to 2,487.9 million riyals. Gross profit moved the other way, falling 7.05% to 811.95 million riyals from 873.54 million riyals.
• Balance sheet and per-share: Total shareholders' equity stood at 1,536.98 million riyals against 1,441.37 million riyals, up 6.633%. Earnings per share for the nine-month period came in at 1.14 riyals, up from 1.05 riyals in the comparable period, according to the disclosure.
• What drove revenue: The company attributed the 14.1% quarterly revenue growth to new and expanded revenue streams, including specialist medical care and surgical services, and to additional service lines lifting inpatient and outpatient income, alongside growth in surgical operations and admitted patients.
• The restatement factor: Part of the swing reflects the restated comparative quarter, which the company said included a 134.2 million riyal impairment on trade receivables. Higher revenue, lower general, administrative, selling and marketing expenses relative to revenue, and a 3.4 million riyal reduction in zakat expense also contributed.
• Offsetting costs: Those gains were partly offset by higher financing costs stemming from non-cash losses on hedging contracts concluded with banks, and by a larger share in the loss of an associate company, according to the company's explanation of the result.
• Market reaction: The stock rose 9.98% to 25.24 riyals in Sunday trading as the disclosure was published on the exchange's website. The results were filed as preliminary figures for the nine months ended 30 September 2026.

Background

Middle East Healthcare, which trades on the Saudi Exchange, operates hospitals under the Saudi German Health brand. The 2025 comparative quarter was restated, altering the baseline against which this quarter's turnaround is measured.

Between the lines

The turnaround rests on two different forces. Revenue growth of 14.08% and a positive 96.93 million riyal operating line are organic improvements tied to surgical and specialist volumes. The 134.2 million riyal receivables impairment in the restated comparative quarter, however, deepened the base loss. Nine-month gross profit still fell 7.05% even as revenue rose 8.478%, indicating cost pressure the quarterly margin improvement does not fully erase.

What's next

Audited annual results and the fourth-quarter filing will show whether the 32.3% gross margin holds and whether nine-month gross profit erosion reverses. Hedging-related financing costs and the associate company's performance remain the swing items.

Source: Saudi Exchange (Tadawul), Middle East Healthcare disclosure