AUNA Q1 2026 Earnings Call Summary

1. Key Financial Results and Metrics

Revenue Growth: Consolidated revenue reached PEN 1.2 billion, a 10% increase year-over-year in FX-neutral terms.
Adjusted EBITDA: Decreased by 5% FXN, with a margin contraction of 2.9 percentage points. However, adjusted EBITDA in Mexico increased by 19% quarter-over-quarter.
Free Cash Flow: Increased 2.6x to PEN 152 million, driven by strong operational cash flow and improved working capital management.
Leverage Ratio: Slightly rose to 3.7x, primarily due to non-cash FX effects, with a target to reduce it to 3x in the medium term.
Cash Position: Increased by 22% to PEN 409 million.

2. Strategic Updates and Business Highlights

Mexico: Recovery in the hospital platform with an 8% revenue increase, driven by higher service volumes, particularly in surgery and oncology. The company is focusing on high-complexity services.
Colombia: Revenue grew 13%, with a shift towards risk-sharing agreements, reducing reliance on intervened payers. Adjusted EBITDA increased by 7%.
Peru: Revenue growth of 9% was impacted by revenue adjustments related to payer reconciliations. The OncoSalud segment continues to grow, adding new plan members.
Torre Trecca Project: Construction is set to begin soon, with a timeline of 18 to 24 months for completion, expected to expand the addressable market in Peru.

3. Forward Guidance and Outlook

AUNA reaffirms its annual revenue and adjusted EBITDA guidance, anticipating stronger growth in the second half of 2026.
The company expects to improve margins in Mexico as oncology services scale and operational efficiencies are realized.
Continued focus on growing risk-sharing businesses and optimizing cash flow management.

4. Bad News, Challenges, or Points of Concern

Adjusted EBITDA Decline: The decrease in adjusted EBITDA was attributed to revenue adjustments and increased payroll costs.
Regulatory Risks in Colombia: Despite reduced reliance on intervened payers, there are concerns about potential future regulatory changes under a different government.
Revenue Adjustments in Peru: Delays in pharmacy rebates and penalties from insurance payers have raised concerns about cash flow predictability.
Margin Compression: While margins are expected to improve, there is uncertainty regarding the impact of oncology services on overall profitability.

5. Notable Q&A Insights

Mexico's Margin Trajectory: Management indicated that while oncology may initially dilute margins, operational leverage and increased volumes will lead to margin recovery.
Colombia's Political Environment: Management expressed confidence that the worst of regulatory changes has passed and that their risk-sharing model positions them well for future stability.
Supplier Financing Initiatives: AUNA is actively managing working capital through supplier financing, extending payment days, and increasing factoring lines across all markets.
Impact of FX: The company expects reduced FX volatility going forward due to recent hedging strategies, although Q1 results were impacted by the depreciation of the Peruvian sol.

Overall, AUNA demonstrated strong revenue growth and cash flow generation in Q1 2026, with strategic initiatives aimed at enhancing profitability and market position, despite facing some operational and regulatory challenges.

AUNA — Auna S.A.