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Investing.com -- Fresenius Medical (TASE:BLWV) Care (NYSE:FMS) on Tuesday reported second-quarter 2025 revenue of €4,792 million, in line with consensus estimates of €4,750 million, representing 5% growth at constant exchange rates.
The company’s adjusted EBIT came in at €476 million, approximately 3% below consensus expectations of €492 million.
Performance was impacted by a severe flu season and excess mortality, which resulted in "stable" same market treatment growth.
Fresenius Medical Care confirmed its full-year 2025 outlook, projecting positive to low single-digit constant currency revenue growth and adjusted EBIT growth in the high teens to high twenties percentage range.
The adjusted EBIT guidance implies a narrowed margin of approximately 11-12%, compared to the previous 10-14% range.
The company’s net leverage ratio decreased to 2.7x from 2.8x in the first quarter, falling below its self-imposed target corridor of 3.0-3.5x.
In the Care Delivery segment, sales grew 1.3% at constant exchange rates, with 0.5% same market treatment growth.
The Value-Based Care segment saw sales increase by 28.4%, primarily driven by a substantial increase in member months following contract expansions.
Care Enablement revenue grew by 3.4% at constant exchange rates, driven by global volume growth and positive pricing momentum.
The FME25 savings program delivered €58 million in savings during the second quarter, with €53 million related to one-time costs.
The program remains on track to reach €180 million in savings for fiscal year 2025 and €1.05 billion by the end of 2027.
Management confirmed a €1 billion share buyback program over two years, with the first tranche starting in August.
The company also recently provided an aspirational 2030 Group adjusted EBIT margin target of "mid-teens" compared to the "11-12%" guidance for fiscal year 2025.
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