Fresenius Medical Care (NYSE:FMS) on Tuesday announced second-quarter 2025 revenue of €4,792 million, aligning closely with consensus expectations of €4,750 million and marking a 5% increase on a constant currency basis.
Adjusted EBIT reached €476 million, slightly trailing the consensus forecast of €492 million by about 3%.
The company cited a severe flu season and higher mortality rates as factors limiting growth, resulting in “stable” same-market treatment volumes.
Fresenius Medical Care reaffirmed its full-year 2025 guidance, anticipating positive to low single-digit growth in constant currency revenue and adjusted EBIT expansion in the high teens to high twenties percentage range.
The EBIT margin outlook was revised to a tighter band of roughly 11-12%, compared to the previous forecast of 10-14%.
Net leverage improved to 2.7x from 2.8x in Q1, moving below the company’s internal target range of 3.0-3.5x.
Within the Care Delivery segment, sales increased 1.3% on a constant currency basis, supported by 0.5% growth in same-market treatments.
The Value-Based Care division saw a significant 28.4% rise in sales, primarily due to contract expansions that boosted member months.
Care Enablement revenue rose 3.4% in constant currency terms, driven by higher volumes globally and favorable pricing trends.
The FME25 cost savings initiative generated €58 million in Q2, including €53 million from one-time cost reductions.
The program remains on track to deliver €180 million in savings in 2025 and reach €1.05 billion by 2027’s end.
Management confirmed a €1 billion share repurchase plan spanning two years, with the first tranche commencing in August.
Looking ahead, the company shared an ambitious adjusted EBIT margin target of “mid-teens” by 2030, building on the current 11-12% guidance for 2025.
Fresenius Medical Care stock price
This content is for informational purposes only and does not constitute financial, investment, or other professional advice. It should not be considered a recommendation to buy or sell any securities or financial instruments. All investments involve risk, including the potential loss of principal. Past performance is not indicative of future results. You should conduct your own research and consult with a qualified financial advisor before making any investment decisions.