SHERIDAN, WYOMING – May 8, 2025 – Fresenius Medical Care has kicked off fiscal year 2025 with robust financial performance, driven by strong organic revenue growth and significant operational efficiencies. The world’s leading provider of dialysis products and services posted a 5% increase in organic revenue, highlighting continued operational improvements in both its Care Enablement and Care Delivery segments.
Strong Financial Results in Q1 2025
In the first quarter of 2025, Fresenius Medical Care achieved notable revenue growth, with total sales rising 3% year-on-year, and organic growth accounting for a 5% increase. The company’s total revenue for Q1 amounted to EUR 4,881 million. Despite the challenges posed by a severe flu season, which impacted dialysis treatment volumes in the U.S., the company demonstrated resilience through its diversified service offerings and strategic operational improvements.
Operating income rose by 35%, totaling EUR 331 million, driven by cost-saving measures from the FME25 program, which delivered EUR 68 million in savings. This was complemented by a solid performance in Care Enablement, where the company reached its target margin band for the first time. The successful execution of this transformation plan is set to continue contributing to Fresenius Medical Care’s growth trajectory throughout 2025.
Key Factors Behind Growth
- Organic Revenue Growth: Care Enablement and Care Delivery both experienced strong organic revenue growth. Care Enablement, which focuses on enhancing the delivery of renal care through technological innovations, achieved a 5% increase in revenue. Care Delivery, the company’s largest segment, saw a solid 2% increase in revenue, despite the challenges from the flu season.
- Strategic Divestments and Portfolio Optimization: Fresenius Medical Care continued its strategic focus on optimizing its portfolio by exiting non-core and low-margin assets. This included the divestiture of assets from Spectra Laboratories and clinics in Malaysia, both of which contributed to the company’s streamlined operations.
- FME25 Transformation Program: The ongoing FME25 transformation program continued to drive positive outcomes, with the company realizing EUR 68 million in additional savings during Q1. This program is expected to generate EUR 750 million in savings by the end of 2025, enhancing the company's overall financial position.
Growth in Care Delivery and Care Enablement
The Care Delivery segment, which provides dialysis treatments through a network of clinics worldwide, delivered solid performance, especially in the U.S. This segment saw a 6% revenue increase, with value-based care programs and favorable reimbursement rates contributing positively. However, a decline in dialysis days, primarily due to the flu season, had a temporary impact on overall treatment volumes.
On the other hand, Care Enablement reported impressive revenue growth of 5%. The segment benefited from global volume increases and positive pricing trends, particularly in regions like China, where volume-based procurement supported growth despite pricing pressures.
Financial Strength and Strategic Outlook
Fresenius Medical Care’s strong cash flow development reflects the company’s robust financial health. Operating cash flow increased by 28%, while free cash flow turned positive at EUR 21 million, a notable improvement from the previous year. The company also made progress in reducing its net leverage ratio, which now stands at 2.8x, down from 2.9x in Q4 2024.
Looking ahead, Fresenius Medical Care confirms its outlook for 2025, expecting positive revenue growth and significant improvements in operating income. The company is on track to achieve a high-teens to high-twenties percentage increase in operating income for the full year.
Conclusion
Fresenius Medical Care’s Q1 2025 performance underscores the effectiveness of its strategic initiatives, including operational efficiencies, portfolio optimization, and the execution of its transformation plan. The company is well-positioned for continued growth in the coming quarters, with a clear focus on expanding margins, driving innovation in renal care, and ensuring financial stability. To learn more about Fresenius Medical Care and its solutions for renal disease, visit www.freseniusmedicalcare.com.