KPJ Healthcare Berhad (“KPJ Healthcare” or “the Group”) today announced its financial results for the fourth quarter ended 31 December 2025, concluding the Group’s performance for the full financial year.

Fourth Quarter FY2025 Results 

Financial Performance

• Revenue for Q4 FY2025 increased by 10% year-on-year to RM1.152 billion and 3% quarter-on-quarter.

• EBITDA for the quarter amounted to RM312 million, increasing 3% year-on-year and 14% quarter-on-quarter. EBITDA margin was 27.1%, lower year-on-year but improved by 2.5 percentage points quarter-on-quarter.

• PATAMI for Q4 FY2025 increased 10% year-on-year to RM133 million and 42% quarter-on-quarter, with PATAMI margin at 11.5%, broadly stable year-on-year and higher quarter-on-quarter.

Operational Performance 

• Inpatient admissions increased 3% year-on-year to 99,721, while outpatient visits rose 6% year-on-year to 773,799.

• Surgical cases increased 11% year-on-year to 30,784.

• Average revenue per inpatient increased 7% year-on-year to RM8,379, while average revenue per outpatient increased 1% year-on-year to RM335.

• Bed Occupancy Rate for the quarter was 67%, lower year-on-year and higher quarter-on-quarter.

Full Year FY2025 Results 

Financial Performance

• Revenue for FY2025 increased 9% year-on-year to RM4.26 billion.

• EBITDA for the full year rose 6% year-on-year to RM1.05 billion.

• PATAMI for FY2025 amounted to RM366 million.

Dividend 

The Board declared a first interim dividend of 1.35 sen per share for FY2026, totalling RM59.2 million, payable on 17 April 2026.

Operational Update FY2025

During the quarter, the Group recorded revenue growth of 10% year-on-year, largely contributed by the higher number of patients’ visits in the current financial year. Operational beds increased 4% year-on-year as capacity expansion progressed, while surgical cases rose 11% and average revenue per inpatient increased 7%, reflecting continued growth in patient activity across the network. Management remained focused on balancing utilisation, clinical quality and cost discipline amid ongoing workforce and cost pressures affecting the healthcare sector.

Chin Keat Chyuan, PMD of KPJ Healthcare, said, “FY2025 reflects clear progress in strengthening revenue quality, operating leverage and system integration across the Group. Growth, supported by resilient patient demand, improving case mix and deeper specialist capability, is shifting KPJ toward higher-acuity, value-generative services. Capacity expansion and operational discipline are translating into stronger earnings conversion. 

To drive KPJ’s future, we introduced the KPJ Health System (KPJHS) in late 2024. Anchored on three pillars - practice, education and research & innovation - KPJHS serves as our transformation engine, integrating governance, digital infrastructure and clinical protocols to reduce variation, strengthen coordination and enhance system-wide efficiency.  KPJHS reinforces our “Care for Life” mission as the sacrosanct foundation of the Group, embedding it more deeply into how care is delivered, measured and continuously improved. 

The next phase of KPJ’s growth will be driven by the convergence of AI, genomics and value-based care within a unified operating model, redesigning how care is delivered, measured and monetised with a stronger emphasis on predictive, preventive and precision healthcare, with excellent patient outcomes and patient experience as our ultimate measure of success”.

Strategic Plan 2026–2030 (“the Plan”) Highlights

Together with its financial results, KPJ Healthcare unveiled its 2026–2030 Strategic Plan - a disciplined roadmap that guides capital allocation, execution and system-wide transformation. The strategy marks a structural shift from a group of standalone hospitals to Malaysia’s first private integrated Academic Health System, building on the KPJ Health System (“KPJHS”) launched in 2024. KPJHS represents a bold step forward in advancing KPJ’s “Care for Life” purpose, with KPJHS’ clear ambition to ultimately deliver consistent excellent patient outcomes. In doing so, it will also strengthen financial sustainability and create meaningful societal impact. By 2030, KPJ aims to strengthen its leadership position as a regional integrated health system, setting the benchmark for clinical excellence, system connectivity, innovation and institutional discipline in Malaysia’s private healthcare sector.

1. Strategic architecture: One System, One Purpose, One Standard

Under the Strategic Plan, KPJ will complete its integration under One System, One Purpose, One Standard, unifying governance, digital platforms and clinical protocols to deliver consistent clinical outcomes nationwide. This integrated KPJHS will be complemented by the KPJ Care Network - a digitally enabled ecosystem that connects hospitals, specialists and patients through a seamless flow of information and coordinated care. The KPJ Care Network will operate on a hub-and-spoke model - linking KPJ’s flagship hubs and hospitals, Ambulatory Care Centres (ACCs), affiliated clinics, third-party hospitals, general practitioners, diagnostic partners and other external collaborators. This structure strengthens referral capture, enhances cross-border coordination and supports medical tourism growth while improving system-wide efficiency. 

2. Growth platforms: hubs and spokes, brownfield expansion, Centres of Excellence (CoE) and Ambulatory Care Centres (ACCs)

Growth will be anchored by our CoEs - Heart & Lung, Oncology, Neuro & Stroke and Orthopaedics, which will act as key hubs within the KPJ Care Network, driving a higher-acuity case mix, stronger research output and greater benchmarking discipline across the system. Over the next five years, KPJ will establish 15 Centres of Excellence to embed consistent standards, deepen specialist capability and deliver measurable outcomes network-wide.

To reinforce capacity, KPJ will commence asset optimisation within our hospital network and phased brownfield expansion at nine hospitals during the five-year Strategic Plan period - Kuching Specialist Hospital (SH), Perdana SH, Johor SH, Damansara SH 2, KPJ Rawang SH, KPJ Klang SH, KPJ Kajang SH, Ipoh SH and Bandar Dato’ Onn SH, adding about 2,200 beds upon completion. In parallel, KPJ will expand ACCs in high-demand corridors, creating spoke access points that link patients into the wider KPJ Care Network and strengthening access, utilisation, revenue intensity and operating leverage across the Group.

3. Clinical innovation, data and value-based care

KPJ will embed AI, data and genomics into clinical and operational workflows, including AI-enabled diagnostics, predictive risk stratification and Smart Ward capabilities governed by strong safety and ethics oversight. Genomics and precision medicine will be integrated into Centres of Excellence to enhance early diagnosis, personalised treatment pathways and advanced therapies, while strengthened cost transparency, benchmarking and outcome tracking will support a transition to value-based, outcome-driven care in preparation for DRG reforms.

4. Academic platform and research

KPJ Healthcare University will be reinvented as a Health and Wellness University that integrates digital health, AI and genomics, with a focus on future-ready clinical talent, translational research and industry collaboration.

5. Brand Refresh through People and Patient Experience

Under the 2026–2030 Strategic Plan, KPJ will refresh its brand purpose by elevating hospitals from treatment centres into integrated wellness destinations, embedding service excellence and hospitality-driven design to deliver a consistent, premium patient experience across all touchpoints. KPJ will compete not by volume, but by credibility, consistency and confidence, making care not only effective but effortless by combining clinical precision with the warmth of service that defines the KPJ brand. Hospitals will progressively allocate 10 – 15% of space to retail, lifestyle and wellness offerings such as cafés, rehabilitation studios and integrated health boutiques, so that KPJ’s identity is not only seen but felt by every patient and visitor. 

Execution and capital deployment 

To translate strategy into disciplined execution, KPJ has identified a structured pipeline of initiatives for 2026–2030. These include hospital redevelopment and brownfield expansion, development of new hospital towers and clinical blocks, capacity optimisation and specialist service expansion; continued scaling of ACCs and network-integrated outpatient and day-care models; expansion of digital and interoperable clinical information systems and data platforms; investment in advanced clinical equipment and hospital infrastructure; and selective regional partnerships to support asset-light growth and knowledge exchange across Southeast Asia.

To support these initiatives, capital investment will be phased and is expected to range cumulatively between RM4 billion and RM5 billion over the Plan period. Investment will also support workforce development and broader system enablement to strengthen long-term system capability. Capital deployment will remain governed by defined return thresholds and disciplined capital allocation, with gearing maintained within prescribed covenant levels throughout the plan period.

Summary of the Strategic Plan 

Over the 2026–2030 period, the Strategic Plan shifts KPJ’s growth model from expansion-led capacity build-out to system-led value creation, with the KPJ Health System and KPJ Care Network at its core. Performance will increasingly be driven by higher-acuity clinical depth through Centres of Excellence, stronger referral capture and utilisation across the hub-and-spoke network, and disciplined brownfield optimisation and ACC rollout that enhance revenue intensity and operating leverage. At the same time, convergence of AI, data, genomics and value-based, predictive, preventive and precision care, reinforced by an academic and research platform and experience-led differentiation, is expected to strengthen pathway economics, margin resilience and long-term shareholder value.

Outlook

For 2026, KPJ remains cautiously optimistic about its prospects, supported by its ongoing asset optimisation programme, continued capacity expansion and sustained focus on enhancing operational efficiency.

The operating environment continues to be shaped by broader economic and regulatory developments. Bank Negara Malaysia (“BNM”) reported GDP growth of 6.3% for Q4 2025, supported by higher household spending, steady investment activities and continued demand for electrical and electronics exports and tourism activities. BNM expects growth in 2026 to be within the range of 4% to 4.5%, driven by resilient domestic demand and exports.

The Ministry of Health’s decision to defer the implementation of the Diagnosis Related Group (“DRG”) system to 2027 provides added clarity and supports a smoother, more sustainable transition for the healthcare sector.