Fresenius Medical Care (FME) Q2 2024 earnings summary

Executive summary

• Q2 2024 delivered organic revenue growth of up to 2.3%, with both Care Delivery and Care Enablement contributing positively.

• Operating income and margin improved, driven by Care Enablement, FME25 cost savings, and strategic transformation initiatives.

• Net income attributable to shareholders increased up to 33% to €187M, with EPS at €0.64.

• Portfolio optimization advanced with several divestitures closed, supporting deleveraging and transformation.

• FY 2024 outlook confirmed, with continued focus on operational turnaround, cost savings, and margin targets.

Financial highlights

• Q2 2024 revenue was €4,766M, down 1% year-over-year, with organic growth of up to 2.3%.

• Q2 operating income rose up to 19% to €425M; margin improved to 8.9% from 7.4%.

• Net income increased up to 33% to €187M; basic EPS up 33% to €0.64.

• H1 2024 revenue was €9,565M (flat year-over-year); operating income up 15% to €849M.

• Free cash flow in Q2 was €287M, down from €854M, mainly due to temporary cash outflows related to a vendor change post-cyber incident.

Outlook and guidance

• 2024 outlook confirmed: revenue expected to grow low to mid-single digits, operating income mid to high teens percent, both at constant currency and excluding special items.

• U.S. same market treatment growth expectation refined to flat to 0.5% for 2024 due to elevated mortality.

• FME25 savings expected to reach the upper end of the €100–150M target range.

• Operating income margin target of 10–14% by 2025 reaffirmed.

• Guidance for 2025 may be narrowed after further visibility in Q3.