Gulf Medical Projects Company

1. Company Overview & Earnings Context

Gulf Medical Projects Company (GMPC) is a Sharjah-based public shareholding healthcare company. The Group’s activities include general hospitals, telehealth services, home healthcare, advanced first-aid training, hospital management, and the establishment of medicine manufacturing factories.

GMPC delivered higher revenue and gross profit in H1 2026, although overall net profit was slightly lower compared with H1 2025. Revenue increased to AED 405.2 million, while profit attributable to shareholders stood at AED 55.7 million.

2. Financial Performance Snapshot

• Revenue: AED 405.2 million (+10.9% YoY)

• Gross Profit: AED 102.6 Million (+6.4% YoY)

• Other Income: AED 34.7 Million, vs. AED 37.3 Million

• Profit Before Tax: AED 73.0 Million (-2.0% YoY)

• Net Profit: AED 68.5 Million (-1.7% YoY)

• Profit Attributable to Shareholders: AED 55.7 Million (-3.0% YoY)

• EPS: AED 0.080, vs. AED 0.082

The Group's H1 2026 financial statements cover the six-month period ended 30 June 2026.

Revenue growth therefore remained healthy, but it did not translate into corresponding earnings growth during the period.

3. Revenue Growth & Core Operations

Revenue increased by approximately AED 39.8 million, from AED 365.4 million in H1 2025 to AED 405.2 million in H1 2026, representing growth of around 10.9% YoY.

Cost of revenue increased at a slightly faster pace, reaching AED 302.6 million from AED 269.0 million. As a result, gross profit increased by a more moderate 6.4% to AED 102.6 million.

This indicates that the Group continued to expand its healthcare-related revenues during H1, although the higher direct cost base limited the improvement in gross profitability.

4. Key Performance Drivers

While gross profit increased, general and administrative expenses rose to AED 66.4 million from AED 63.8 million. Other income also declined to AED 34.7 million from AED 37.3 million.

Investment-related performance provided some support. GMPC recorded a AED 2.2 million fair-value gain on investments, compared with AED 6.7 million in H1 2025, while dividend income increased to AED 24.0 million from AED 20.9 million.

Overall, profit before tax reached AED 73.0 million, slightly below AED 74.5 million in H1 2025. After tax, Group profit stood at AED 68.5 million, compared with AED 69.7 million a year earlier.

5. Balance Sheet, Cash Flow & Dividend

GMPC maintained a sizeable balance sheet at the end of June 2026:

• Total Assets: AED 1.48 Billion

• Total Equity: AED 1.25 Billion

• Total Liabilities: AED 225.1 Million

• Cash & Bank Balances: AED 138.0 Million

• Property & Equipment: AED 692.8 Million

• Financial Investments: AED 352.7 Million

The Group's balance sheet therefore remained strongly equity-funded, with equity representing approximately 85% of total assets.

Operating cash flow, however, declined to AED 42.2 million from AED 86.0 million, primarily alongside higher receivables and inventory. The Group paid AED 118.8 million in cash dividends during H1 2026, compared with AED 104.8 million in H1 2025.

6. Investor Takeaway

Gulf Medical Projects Company's H1 2026 results were mixed but relatively stable. Revenue grew 10.9%, and gross profit increased 6.4%, showing continued expansion in the underlying business. However, higher costs and weaker investment-related gains meant that overall net profit declined slightly.

The Group's strong equity position remains a notable feature, with AED 1.25 billion of equity against AED 1.48 billion of total assets. At the same time, the decline in operating cash flow to AED 42.2 million is worth monitoring.

Key areas to watch in H2 2026 are revenue growth, gross margins, operating expenses, cash generation, receivables, and the contribution from the Group's investment portfolio.