Dallah Healthcare Reports Record-Setting Q2 Revenue Surpassing SAR 1 Billion, Driven by Strategic Acquisitions and Operational Growth; H1 Net Profit Climbs 21%
Dallah Healthcare, a leading integrated healthcare provider in Saudi Arabia, has announced its financial results for the second quarter and first half of 2025, marking a significant milestone in the company’s growth trajectory. For the first time in its history, the company reported quarterly revenues exceeding SAR 1 billion, underscoring the success of its recent acquisitions, enhanced operational capacity, and increased patient volumes.
The company’s Q2 2025 performance reflects a strong upward trend in both revenue and profit, with substantial contributions from newly acquired hospitals and ongoing improvements at existing facilities. These achievements align with Dallah’s strategic focus on expanding its national footprint and offering high-quality, patient-centered care across the Kingdom.
Quarterly Revenues Cross SAR 1 Billion for the First Time
In the second quarter of 2025, Dallah Healthcare reported revenues of SAR 1,062 million, a 38.8% increase compared to SAR 765 million in Q2 2024. This SAR 297 million growth is the highest quarterly revenue increase in the company’s history and was fueled by both organic growth and acquisitions.
A major portion of this increase—approximately SAR 176 million or 59%—was driven by Dallah’s recent acquisition of two key hospitals: Dallah Al Khobar Hospital (formerly Al Salam Hospital) and Dallah Al Ahsa Hospital (formerly Al Ahsa Hospital). The company finalized the acquisition of these two hospitals on March 23, 2025, and has since made rapid operational improvements that have translated into immediate revenue generation and margin enhancements.
Notably, Dallah Al Khobar and Al Ahsa hospitals together saw their combined revenue rise by SAR 73 million in Q2 2025, representing a remarkable 72% increase compared to the same period last year—despite being under Dallah’s management for only a single quarter.
Capacity Expansion to Drive Sustained Growth
The acquisition of the two hospitals also significantly increased the Group’s overall capacity. A total of 424 new beds were added through these acquisitions—274 at Dallah Al Ahsa and 150 currently operational at Dallah Al Khobar. The company expects total bed capacity at Dallah Al Khobar to reach 475 once full operations commence, bringing the Group’s capacity growth to 65% from the current 37%.
Dallah Healthcare’s total operational capacity has now surpassed 1,900 beds across its network. When including affiliated institutions, the number reaches 2,560 beds. This positions Dallah as one of the largest private healthcare providers in Saudi Arabia in terms of bed capacity, supporting the Kingdom’s Vision 2030 goals to expand and enhance healthcare infrastructure.
Strong Performance from Existing Facilities
In addition to the uplift from new acquisitions, Dallah’s existing healthcare facilities demonstrated solid organic growth. Revenues from these operations increased by SAR 121 million year-over-year in Q2 2025, representing a 15.8% gain. The improvement was largely driven by a rise in patient visits and expanded services in key specialties, including cardiology, oncology, orthopedics, and maternity care.
This dual engine of growth—through both acquisitions and enhanced performance from existing hospitals—reinforces Dallah’s ability to execute its long-term expansion strategy while maintaining high operational standards.
Q2 Profitability Metrics Show Double-Digit Growth
Net profit attributable to shareholders rose 11.1% year-over-year to SAR 124 million in Q2 2025, compared to SAR 112 million in Q2 2024. Earnings per share (EPS) improved to SAR 1.23 from SAR 1.15 during the same period last year, reflecting stronger earnings performance despite the short-term integration costs associated with the new hospitals.
Gross profit for the quarter increased by 26.3% to SAR 376 million, while operating profit rose 9.9% to SAR 155 million. The company also recorded a reversal of SAR 12.5 million in Zakat provisions, following the successful settlement of prior-year liabilities through the end of 2023.
In terms of profitability, EBITDA grew significantly by 23.4% year-over-year, reaching SAR 229 million in Q2 2025 versus SAR 186 million in Q2 2024. This improvement demonstrates both increased operational efficiency and positive early results from newly integrated hospital operations.
Dallah Al Khobar Hospital, which had incurred heavy losses before acquisition, showed a dramatic 61% reduction in net losses in Q2 2025, totaling SAR 18 million. This progress was largely attributed to improved patient volumes and early-stage operational efficiencies under Dallah’s management. It’s worth noting that the pre-acquisition losses from Q2 2024 were not included in Dallah Healthcare’s financials.
First Half 2025 Results: Net Profit Surges 21%
For the first six months of 2025, Dallah Healthcare reported revenues of SAR 1,895 million, a 22.3% increase compared to SAR 1,549 million in the same period in 2024. The newly acquired hospitals contributed SAR 189 million of this revenue growth, while existing operations added SAR 157 million, representing a 10.1% increase.
Net profit attributable to shareholders climbed by 21.1% to SAR 280 million in H1 2025, up from SAR 231 million in the first half of 2024. Earnings per share increased to SAR 2.81, compared to SAR 2.37 in the prior-year period, reinforcing the company’s ability to deliver shareholder value despite market challenges and integration costs.
Gross profit for the six-month period rose by 13.9% to SAR 673 million, while operating profit increased 14.7% to SAR 333 million. EBITDA also improved significantly, reaching SAR 462 million, a 21.3% increase from SAR 381 million recorded in H1 2024.
Operational Turnaround at Acquired Hospitals
While Dallah Al Khobar Hospital incurred SAR 23 million in net losses during the initial phase of integration, the Group’s overall financial performance remained strong. The early losses were expected due to the time required for full integration and operational ramp-up. However, management reported rapid improvement in efficiency, patient engagement, and service delivery in just three months of takeover.
Together, Dallah Al Khobar and Dallah Al Ahsa hospitals are projected to contribute over SAR 500 million in total revenue to the Group by the end of 2025. This figure underscores the long-term value of these acquisitions and the speed with which they are being integrated into the broader Dallah system.
Management Commentary
Commenting on the results, Eng. Tarek Al Qasabi, Chairman of Dallah Healthcare, emphasized the importance of recent acquisitions and the confidence patients have placed in the Dallah brand. “The success of these transactions is a testament to the trust our patients place in Dallah’s quality of care, our commitment to innovation, and our vision for expansion,” he said.
Al Qasabi also highlighted that the acquisitions have not only improved financial performance but also increased Dallah’s ability to serve new regions and expand access to specialized healthcare services across Saudi Arabia.
