Diagnostyka S.A.

Key takeaways

• Diagnostyka reported a 13.4% YoY revenue growth in Q1 2026, reaching over PLN 670 million.
• EBITDA increased by 11.4% YoY to PLN 179.6 million, with an EBITDA margin of 26.8%.
• Net profit attributable to shareholders of the parent company grew by 13.3% YoY to PLN 82.6 million.
• Dividend payout of 59% of 2025 net profit, equating to PLN 4.4 per share.
• Continued investment in infrastructure, including a new histopathology lab in Gliwice and a modern laboratory in Gdynia.

Key financial figures

• Revenue: Over PLN 670 million, up 13.4% YoY.
• EBITDA: PLN 179.6 million, up 11.4% YoY; EBITDA margin at 26.8% (down from 27.3% in Q1 2025).
• Net profit: PLN 82.6 million, up 13.3% YoY.
• Cash flow: Increased by 7% YoY to PLN 9 million; free cash flow conversion at 77.4%.
• Net debt: Increased by 19% YoY to PLN 1.8x net debt/EBITDA.
• Capex: PLN 60 million in Q1 2026, including PLN 32 million for M&A transactions.

Guidance & outlook

• Revenue growth expected to remain in the low-mid teens for 2026.
• Average price growth projected at high single digits.
• Volume growth expected at low-mid single digits.
• EBITDA margin expected to compress slightly but remain strong.
• Capex guidance maintained at PLN 170-220 million for 2026.
• Selective approach to M&A, particularly in diagnostic imaging due to regulatory uncertainties.

Strategic highlights

• New investments: Finalizing a histopathology lab in Gliwice and preparing a modern laboratory in Gdynia for 2027.
• Digital transformation: Ongoing implementation of a new cloud-based laboratory system and SAP system, with full deployment expected in H2 2026.
• Preventive programs: Strong growth in cervical cancer prevention program, with patient numbers increasing by 30% MoM.
• M&A activity: Completed 6 small acquisitions in laboratory diagnostics and 2 acquisitions in diagnostic imaging during Q1 2026.
• Diagnostic imaging: Focus on non-NFZ (National Health Fund) contracts due to regulatory uncertainties. Exploring opportunities in fee-for-service markets and cost optimization.
• Mobile app: Over 500,000 users with monthly growth of tens of thousands. Plans to launch a new version in Q4 2026 to support preventive health initiatives.

Q&A highlights

• Volume growth: Q1 2026 volume growth was 1.2% YoY, impacted by high base effects and weather conditions. Management expects improvement in the remaining quarters, maintaining guidance of low-mid single-digit growth for the year.
• Average price: Q1 2026 average price increased by 16.5% YoY (9.7% in laboratory diagnostics). Management plans price adjustments from July 2026, maintaining guidance of high single-digit growth.
• B2B vs. B2C growth: B2B revenue grew faster in Q1 2026 (16% YoY) compared to B2C (9.2% YoY). B2C growth is expected to accelerate in 2027 with the launch of the "Profilaktyka Plus" project and an updated mobile app.
• SAP implementation: Stabilization of the new SAP system is ongoing. Minor additional costs may arise in subsequent quarters, but they are not expected to be material.
• M&A in diagnostic imaging: Regulatory changes have created uncertainty, making it challenging to evaluate and negotiate acquisitions. Both buyers and sellers are cautious.
• Mitigating regulatory impacts in imaging: Efforts include improving efficiency, cost optimization, and exploring fee-for-service opportunities. Artificial intelligence solutions for imaging analysis are being accelerated.
• Point-of-care network: Currently operating ~1,200 collection points, with plans to continue expanding and upgrading locations, particularly in high-traffic areas like shopping malls.
• Mobile app impact: The app has driven increased test volumes and patient engagement, with over 500,000 users. Future updates will enhance preventive health offerings.
• Enel-Med and Lux Med contracts: The Enel-Med contract ended in May 2026, with its impact to be reflected in June results. Lux Med's new laboratory in Warsaw is not expected to open by year-end.