Medicover AB (publ)

Reported Q2 2026 revenue was EUR 640.4 million, up 11.8% organically. Adjusted EBITDA was EUR 109.2 million and adjusted EBITDA margin was 17.1%; EBIT was EUR 51.2 million with an 8% margin, up 100 bps year over year. EBITDAaL was EUR 72.7 million, up just under 13%, with margin at 11.3%, up 50 bps. Operating cash flow was EUR 73.6 million, up 28.4%, and leverage was 2.9x versus 3.1x at year-end and 3.6x last year. In Healthcare Services, revenue was EUR 442.8 million, up 6.9%, with organic growth of 12.2% and EBITDA margin of 18.4%. In Diagnostics, revenue was EUR 205.1 million, up 8.5%, organic growth was 10.9%, and EBITDAaL was EUR 30.3 million with a 14.7% margin. India revenue grew 23.1% in euros and 39.6% in local currency; EBITDAaL loss from immature Indian hospitals was EUR 3.2 million. Management said leverage should remain under 3x, CapEx was EUR 29.7 million in the quarter (4.6% of revenue) and around 6% of revenue for the full year, and the full-year tax rate is expected to be 26% to 30%. The company also expects its 2028 targets to remain achievable, including EUR 3.25 billion of organic revenue, EUR 600 million of adjusted organic EBITDA, and leverage under 3x.

John Stubbington framed the quarter as one of positive progression, emphasizing double-digit organic growth, margin expansion, and what he called a strong record of consistency. He highlighted especially strong momentum in Diagnostics, continued improvement in India, and growing fee-for-service revenue, which he said remains a core strategic focus. His tone was upbeat and confident, but he repeatedly noted that some comparisons were tough and that the company is still executing through market and regulatory changes.

Anand Patel described the quarter as solid, with consistent double-digit organic growth and margin accretion. He cited EBIT of EUR 51.2 million, EBITDAaL of EUR 72.7 million, free cash flow at 4.1% of revenue versus 3% last year, ROIC of 13.6% versus 9.3%, and leverage below 3x; he also said the RCF was increased from EUR 300 million to EUR 400 million in May to add headroom. On capital allocation, he noted Q2 dividend payments of EUR 0.20 per share and CapEx of EUR 29.7 million, or 4.6% of revenue, with full-year CapEx still expected at around 6% of revenue.

Analysts focused on Poland, India, and fee-for-service dynamics. Management said Poland’s funded business is starting to move again, but Romania was weaker because of profitability-driven portfolio adjustments and government payment changes; management expects Romania to stabilize over time. On India, they said startup losses from new hospitals are still present but should diminish over 18 months to 2 years as new facilities mature, while confirming India margins are still dilutive to the group. On Diagnostics pricing, management said the higher price contribution was mainly mix-driven, not due to German pricing changes, and they also dismissed weather as having caused any major disruption to demand.