Fresenius shares rise 3% on Q1 beat, flat U.S. growth seen as temporary

Published 06/05/2025, 11:14
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Investing.com -- Shares of Fresenius Medical Care (ETR:FMEG) rose more than 3% on Tuesday after the company reported first-quarter results that beat expectations, despite flat treatment growth in its key U.S. market.

Sales for the quarter were 1% above consensus, while adjusted EBIT and adjusted earnings per share exceeded forecasts by 2% and 11%, respectively, according to Deutsche Bank (ETR:DBKGn) Research. 

Organic sales grew 5%, with contributions from both dialysis services and dialysis products.

Adjusted EBIT rose 11% at constant currency, lifting the margin to 9.4%. While U.S. same-market treatment growth was flat, Deutsche Bank analysts said this was expected due to a severe flu season.

The Care Delivery segment saw 4% organic growth, with U.S. sales rising 3%. Adjusted EBIT for the unit improved modestly, supported by price effects and cost savings. 

The Care Enablement segment posted 5% sales growth and a 50% jump in adjusted EBIT, driven by pricing, volume, and ongoing efficiency gains.

Fresenius confirmed its 2025 outlook, projecting low-single-digit sales growth in constant currency and an adjusted EBIT margin of 11% to 12%, helped by continued cost-cutting efforts. U.S. treatment growth is expected to exceed 0.5% next year. 

However, Deutsche Bank noted that foreign exchange trends, particularly a weaker U.S. dollar, could weigh on earnings.

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