By Brazil Stock Guide – Rede Mater Dei de Saúde (B3: MATD3) reported a 66.1% increase in second-quarter net profit to R$45 million, as higher average revenue per patient, tighter cost controls and a smaller financial loss helped the Brazilian hospital operator deliver record revenue and EBITDA.
Net revenue reached a quarterly record of R$613.6 million, up 12.4% from a year earlier and 6.7% from the first quarter. Adjusted EBITDA also hit a record R$138.6 million, an increase of 20.3% year over year.
The adjusted EBITDA margin widened to 22.6% from 21.1% in the second quarter of 2025. It was unchanged from the previous quarter on an adjusted basis.
The results show that revenue growth was driven primarily by pricing and procedure mix rather than a material increase in volume. Patient days rose just 0.4% from a year earlier to 87,760, while the average number of operating beds declined 0.5% to 1,225.
Average revenue per patient day, however, increased 12.4% to R$7,845, the highest quarterly level in the company’s history. The average occupancy rate rose 0.7 percentage point to 78.7%.
Activity accelerated on a sequential basis, with patient days increasing 6.3% and operating beds rising 4.9% from the first quarter.
Operating Efficiency Supports Margin Expansion
The cost of services provided increased 12.1% to R$426.9 million, broadly in line with revenue growth. Gross profit rose 13.3% to R$186.7 million, while the gross margin edged up 0.2 percentage point to 30.4%.
Net operating expenses performed more favorably, increasing only 0.8% to R$77.5 million. As a percentage of revenue, they fell to 12.6% from 14.1% a year earlier.
That operating leverage was one of the main drivers of the EBITDA margin expansion. General and administrative expenses rose 10.5%, below revenue growth, while other operating expenses dropped 75.8% to R$2.1 million from R$8.6 million.
Mater Dei attributed the EBITDA improvement to higher average revenue, increased volumes and the continued ramp-up of its hospitals, as well as tighter management of personnel expenses and headcount.
Some cost lines continued to outpace revenue. Spending on materials and medicines increased 15.7% to R$170.2 million, while medical service costs rose 16.2% to R$66.7 million. Hospital personnel costs increased at a more moderate pace of 9.6%.
Smaller Financial Loss Boosts Profit
Mater Dei posted a net financial loss of R$42.6 million, an 8.2% improvement from the R$46.4 million loss recorded a year earlier.
Financial expenses declined 7% to R$71 million, while financial revenue fell 5.1% to R$28.4 million.
The combination of stronger operating earnings and a smaller financial loss lifted pretax income by 60.3% to R$66.6 million. The net margin expanded to 7.3% from 5% a year earlier.
There were no adjustments between reported and adjusted net income during the quarter.
Salvador Leads Regional Growth
Salvador delivered the strongest regional performance, with net revenue increasing 30% to a quarterly record. The number of oncology patients more than doubled, rising 133%, while surgical notifications increased 12%.
In the Belo Horizonte metropolitan region, net revenue grew 10%. The Nova Lima hospital reported a 25% increase in oncology patients from the first quarter.
The group of acquired hospitals posted an 11% increase in net revenue from the previous quarter. The HSG, EMEC and Goiânia hospitals all delivered their highest quarterly revenue on record, while oncology patient volumes across the acquired units increased 109% from a year earlier.
Mater Dei also secured accreditation for its Salvador hospital under Bradesco Saúde’s newly launched Efetivo Plus health plan in Bahia, expanding the hospital’s access to the state’s corporate health insurance market.
Net Debt Falls to R$763 Million
Net debt declined by R$37 million during the quarter to R$763 million. It was also R$9 million lower than a year earlier.
Net leverage fell to 1.5 times trailing 12-month EBITDA from 1.6 times in both comparison periods. Gross debt stood at R$1.39 billion, while cash and financial investments totaled R$628 million.
The company’s weighted average debt maturity was 4.98 years, with 67% of outstanding debt maturing in more than five years.
Operations generated R$135 million before working capital, interest and tax payments. After those outflows, operating cash flow totaled R$86 million. Investments consumed R$27 million during the quarter.
After the end of the reporting period, Mater Dei completed the early redemption of R$200 million in debentures on July 20.
For the first half of 2026, net revenue increased 13.7% to R$1.19 billion. Adjusted EBITDA climbed 26.8% to R$268.6 million, while adjusted net profit surged 71.9% to R$81.3 million.
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