AUNA Q4 2025 Earnings Call Summary

Consolidated Revenue: Grew 6% year-over-year (FX neutral) in Q4; full-year revenue increased by 4%.
Adjusted EBITDA: Declined 14% in Q4 (PEN 220 million) and decreased 3% for the full year (PEN 917 million).
Adjusted Net Income: Increased over threefold to PEN 136 million in Q4 and more than tripled to PEN 336 million for the full year.
Leverage Ratio: Maintained at 3.6x, supported by strong free cash flow, which increased by 35% to PEN 582 million.
Cash Position: Increased by 42% to PEN 335 million.

Mexico Operations: Stabilization efforts under new management are showing promise, with a focus on expanding into privately insured families and aligning with physician groups. Revenue in Q4 was down 3% year-over-year but stabilized from the previous quarter.
Peru Performance: Continued to outperform, with Q4 revenue growth of 11% driven by high complexity services and a record low medical loss ratio (MLR) of 48.5%. Auna signed a public-private partnership with EsSalud to operate a new outpatient facility.
Colombia: Results aligned with objectives, focusing on cash flow improvement and a higher mix of risk-sharing contracts.
Debt Refinancing: Successfully completed an $825 million refinancing, improving the maturity profile and reducing interest expenses.

2026 Expectations:
- Projecting adjusted EBITDA growth of 12% (FX neutral) and revenue growth of 12%.
- CapEx expected to remain around 4% of revenue, focusing on growth investments balanced with cash flow generation.
Market Conditions: Anticipate recovery in Mexico, with increased volumes and margins, particularly in oncology services.

Mexico's Underperformance: Despite stabilization, Mexico's operations faced volume losses in 2025, affecting overall results. The market remains soft, impacting surgeries and emergency visits.
EBITDA Decline: The decline in adjusted EBITDA was attributed to lower revenues and profitability in Mexico, as well as unfavorable year-over-year comparisons in Colombia.
Impairment Losses: High impairment losses in trade receivables in Colombia and Peru were noted, although improvements in accounts receivable days were reported.

Guidance Breakdown: Analysts inquired about growth expectations by region, with management indicating that Mexico's recovery is expected to drive overall improvement.
Torre Trecca Project: Expected to contribute significantly to revenue at maturity (20-25% of Peru's business) with operations commencing in 2028. The project is structured to mitigate capital risk through guaranteed payments from EsSalud.
Share Buyback Discussion: Management mentioned that while share buybacks have been discussed, priority will be on growth investments, particularly in Mexico, given the stock's current undervaluation.
Occupancy and Margin Recovery: Management expressed optimism about achieving higher occupancy rates and margin recovery in Mexico, driven by strategic initiatives and improved contracts with insurers.

This summary encapsulates AUNA's financial performance, strategic initiatives, outlook, and challenges as discussed in the Q4 2025 earnings call.

AUNA — Auna S.A.