Fresenius Medical Care (FME) Q3 2024 earnings summary

Executive summary

• Achieved strong operational and financial improvement in Q3 2024, progressing toward 2025 margin targets, with operating income margin growth and positive U.S. treatment volume trends.

• Organic revenue grew by up to 2% in Q3, supported by both Care Enablement and Care Delivery, despite overall revenue decline due to divestitures and currency effects.

• FME25 transformation program delivered significant cost savings, exceeding targets with €64 million in Q3 and €173 million YTD.

• Portfolio optimization continued with divestments in several countries, focusing on higher-growth areas and generating cash proceeds.

• Maintained high quality of care, with 65% of U.S. centers rated three stars or higher by CMS.

Financial highlights

• Q3 2024 revenue was €4,760 million (down 4% year-over-year), with organic growth of 2%; 9M 2024 revenue was €14,251 million (down 1%).

• Q3 2024 operating income rose 43% to €463 million, with margin up to 9.7% from 6.6% last year; net income increased 153% to €213 million.

• Free cash flow for 9M 2024 was €1,102 million (7.7% of revenue), impacted by dividend and tax payment phasing.

• Net leverage ratio improved to 2.8x, below the target corridor of 3.0–3.5x.

• Operating cash flow improved 30% in Q3 to €985 million, 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 of 10–14% reaffirmed; detailed 2025 guidance to be provided in February.