Fresenius Medical Care (FME) Q3 2024 earnings summary

Executive summary

• Achieved strong operating income margin growth in Q3 2024, progressing toward 2025 targets, with organic revenue growth of 2% supported by both Care Enablement and Care Delivery.

• Operating income rose 43% to €463M, with margin improving to 9.7% from 6.6%, driven by FME25 Program savings and portfolio optimization.

• Net income attributable to shareholders increased 153% to €213M, with EPS at €0.73, reflecting improved profitability and lower tax rate.

• FME25 savings program delivered €173 million YTD, ahead of schedule, with full-year savings expected to reach €200 million.

• Net leverage ratio improved to 2.8x, below the target corridor, reflecting disciplined financial policy.

Financial highlights

• Q3 2024 revenue was €4,760M, down 4% year-over-year due to divestitures and currency effects, but organic growth was 2%.

• Q3 2024 operating income rose 43% to €463M; margin increased to 9.7% from 6.6% last year.

• Net income for Q3 2024 was €213M, up 153% year-over-year; EPS at €0.73.

• Free cash flow for 9M 2024 was €1,102M (7.7% of revenue), down from €1,480M (10.2%) in 9M 2023.

• Operating cash flow improved 30% in Q3 to €985M, margin at 20.7%.

Outlook and guidance

• FY 2024 revenue expected to grow at a low- to mid-single digit percentage rate at constant currency, excluding special items.

• Operating income growth outlook for 2024 tightened to 16–18% at constant currency, excluding special items.

• 2025 group margin outlook remains at 10–14%; detailed guidance for 2025 to be provided in February.