Fresenius Medical Care (FME) Q4 2024 earnings summary

Executive summary

• Achieved strong 2024 performance with 18% operating income growth (outlook base), marking the second year of turnaround and transformation, and accelerating momentum into 2025.

• FME25 transformation program delivered EUR 221 million in additional annual savings, raising the total target to EUR 750 million by end of 2025, with accumulated savings of EUR 567 million by year-end 2024.

• Portfolio optimization and divestitures of non-core assets generated EUR 750 million in cash proceeds, improving leverage and focusing on core business.

• Maintained high patient satisfaction with a Net Promoter Score of 72.

• Net financial leverage ratio reduced to 2.9x, below the self-imposed target range.

Financial highlights

• FY 2024 revenue (outlook base) was EUR 19,454 million, up 2% at constant currency; organic growth was 4% and Q4 organic revenue growth accelerated to 7.4%.

• FY 2024 operating income (outlook base) rose 18% to EUR 1,812 million; Q4 operating income up 31% to EUR 489 million.

• Net income (outlook base) for FY 2024 was EUR 912 million, up 42% year-over-year; basic EPS EUR 3.11 (+42%).

• Free cash flow after investing activities for FY 2024 was EUR 2,301 million, up 10% year-over-year; net financial debt reduced by 9% to EUR 9.8 billion.

• Dividend increase of 21% to EUR 1.44 per share proposed for AGM 2025.

Outlook and guidance

• FY 2025 revenue expected to show positive to low single-digit percent growth from EUR 19,336 million base, including a 1% headwind from divestitures.

• Operating income projected to grow in the high-teens to high-twenties percent, with margin expected at 11–12%.

• EUR 180 million incremental FME25 savings expected in 2025, with total program target at EUR 750 million.

• U.S. same market treatment growth above 0.5% expected in 2025, with normalization to 2% growth anticipated in 2026.

• Dividend increase of 21% proposed, with a 13% CAGR over two years.