Fresenius Medical Care starts 2025 with strong organic revenue and income growth

Core Insights - Fresenius Medical Care reported strong operational and financial progress in Q1 2025, confirming its financial outlook for the full year [1][21] - The company achieved organic revenue growth in both segments, with Care Enablement expanding its operating income margin for the first time [1][6] - The FME25 transformation program delivered significant savings, contributing to improved earnings and margin growth [3][7] Financial Performance - Q1 2025 revenue increased by 3% year-on-year to EUR 4,881 million, with organic growth of 5% [2][6] - Operating income rose by 35% to EUR 331 million, with a margin of 6.8%, while net income more than doubled to EUR 151 million [2][17] - Basic earnings per share (EPS) increased by 113% to EUR 0.52, with EPS excluding special items rising by 31% to EUR 0.84 [2][17] Segment Performance - Care Delivery revenue increased by 2% to EUR 3,857 million, while Care Enablement revenue grew by 5% to EUR 1,367 million [8][11] - In the U.S., Care Delivery revenue rose by 6% to EUR 3,302 million, driven by a growing value-based care business [9] - International Care Delivery revenue declined by 19% to EUR 555 million, impacted by closed operations and a decrease in dialysis days [10] Cost Management and Savings - The FME25 program generated EUR 68 million in sustainable savings, with a target of EUR 180 million additional annual savings by year-end 2025 [3][7] - Special items related to portfolio optimization amounted to negative EUR 24 million in Q1 2025 [4][30] - Operating income excluding special items increased by 13% to EUR 457 million, resulting in a margin of 9.4% [13][30] Cash Flow and Leverage - Operating cash flow improved by 28% to EUR 163 million, with a margin of 3.3% [18] - Free cash flow increased to EUR 21 million, and total net debt was reduced to EUR 9,753 million, improving the net leverage ratio to 2.8x [19][19] Outlook - The company expects positive revenue growth in 2025, projecting operating income excluding special items to grow by a high-teens to high-twenties percent rate compared to the prior year [21][22]