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Earnings Report

Burjeel Holdings

Q1 26 NEUTRAL LOW Impact

1. Company Overview & Earnings Context

Burjeel Holdings reported its Q1 2026 results, delivering a solid performance with steady revenue growth and strong profit expansion, supported by rising patient volumes and operating leverage.

2. Financial Performance Snapshot

  • Revenue: AED 1.34B (+5.1% YoY)

  • EBITDA: AED 201M (+11.2% YoY), margin 15.0%

  • Net profit: AED 57M (+44.5% YoY)

  • Net profit margin: 4.2% (vs 3.1%)

  • Operating cash flow: AED 161M (+13.1% YoY)

  • Free cash flow conversion: 65%

3. Operational Highlights & Key Metrics

  • Patient visits: 1.8M (+7.2% YoY)

  • Outpatient growth: +7.3% YoY, utilization 70%

  • Inpatient growth: +5.9% YoY

  • Bed occupancy: 67%

  • Surgeries performed: 20,860

  • Segment highlights:

    • Hospitals: AED 1.19B revenue (+5.5%), ~89% of total

    • Medical Centers: AED 118M revenue (+9.3%)

    • Hospitals EBITDA: AED 242M (+12.2%)

4. Key Performance Drivers

Burjeel’s Q1 2026 performance was driven by volume growth and improving efficiency, as outlined in the MD&A (pages 5–7):

  • Patient volume growth (+7.2%) supported by network expansion and strong demand for specialized care

  • Revenue growth (+5.1%), impacted slightly by pricing changes under the Unified Procurement Program (UPP)

  • EBITDA margin expansion, driven by procurement optimization and cost discipline

  • Strong operating leverage, translating into 44% growth in net profit

  • Ramp-up of new facilities, with short-term drag but long-term earnings upside

Overall, growth was volume-led with improving profitability as assets scale.

5. Outlook & Forward Guidance

From management guidance (page 14):

  • Revenue expected to grow at low double-digit CAGR

  • EBITDA margins targeted to expand to low-20% range

  • Continued network expansion across UAE and KSA

  • Focus on high-acuity specialties and complex care

  • Capex pipeline (~AED 1B) to support growth and digital transformation

  • Leverage to remain controlled, with net debt/EBITDA <2.5x

6. 🧾 Investor Takeaway

Burjeel delivered a solid Q1 2026 with strong profit growth driven by rising patient volumes and margin expansion, positioning the business for scalable earnings growth as new assets mature.