Company Reports

Fresenius Medical Care reported second-quarter results that included 5% organic revenue growth, 20% adjusted operating profit growth, and 24% adjusted EPS growth to EUR 1.13, above FactSet consensus of EUR 1.07. Management did not adjust its 2026 outlook, though.

Fresenius Medical Care aims to help patients with end-stage renal disease, or ESRD, primarily through its dialysis clinic network and related medical technology. Its strengths in these related areas help Fresenius maintain the leading global position in this market. Even with the threat of obesity drug expansion in the long run, we expect the firm to benefit from decent demand in developed markets, such as the US, and even faster expansion in emerging markets in the long run. We expect revenue to grow in the low- to midsingle digits during the next five years. Additionally, after a pause in 2026 due to one-time headwinds, the firm aims to continue boosting its operating margins from a low base, which could positively influence its profit growth trajectory.

Over the past year, Fresenius Medical Care shares have declined by over 25%, despite 38% growth in 2025 adjusted earnings per share and a roughly stable profit outlook for 2026 from management.

On May 5, Fresenius reported first-quarter results that contained a 6% revenue decline (4% growth organically after divestitures), 2% adjusted operating profit growth, and 8% adjusted EPS growth including share repurchases. The firm maintained its 2026 outlook, including roughly flat profits.

Fresenius Medical Care aims to help patients with end-stage renal disease, or ESRD, primarily through its dialysis clinic network and related medical technology. Its strengths in these related areas help Fresenius maintain the leading global position in this market. Even with the threat of obesity drug expansion in the long run, we expect the firm to benefit from decent demand in developed markets, such as the US, and even faster expansion in emerging markets in the long run. We expect revenue to grow in the low- to midsingle digits during the next five years. Additionally, after a pause in 2026 due to one-time headwinds, the firm aims to continue boosting its operating margins from a low base, which could positively influence its profit growth trajectory.

Fresenius Medical Care aims to help patients with end-stage renal disease, or ESRD, primarily through its dialysis clinic network and related medical technology. Its strengths in these related areas help Fresenius maintain the leading global position in this market. Even with the threat of obesity drug expansion in the long run, we expect the firm to benefit from decent demand in developed markets, such as the US, and even faster expansion in emerging markets in the long run. We expect revenue to grow in the low-single digits during the next five years. Additionally, the firm continues to boost its operating margins from a low base, which could positively influence its profit growth trajectory.

In the fourth quarter, Fresenius delivered growth of 8% in organic revenue, 53% in adjusted operating income, and 68% in adjusted EPS. Including headwinds like investments in a new product launch, it issued guidance for roughly stable 2026 operating profits. Shares fell about 3% in early trading.

In the third quarter, Fresenius Medical Care generated 10% organic revenue growth and adjusted earnings per share growth of 37%. Management confirmed its guidance for 2025.

In constant currency in the second quarter, Fresenius Medical Care generated 7% organic revenue growth, adjusted operating income growth of 13%, and adjusted EPS growth of 30% including lower interest, tax, and minority interest expenses. Management also confirmed their guidance for 2025.

On June 17, Fresenius Medical Care held an investor day at which it updated its operating margin goal to the midteens by 2030 from its current goal of 11%-12% in 2025. The shares declined about 4% after this event.

Fresenius Medical Care treats patients with end-stage renal disease, or ESRD, primarily through its dialysis clinic network and related medical technology. Its strengths in these related areas help Fresenius maintain the leading global position in this market. Even with the threat of obesity drug expansion in the long run, we expect the firm to benefit from decent demand in developed markets, such as the US, and even faster expansion in emerging markets in the long run. With global ESRD patient growth expected to remain in the low to mid-single digits in the long run, with a slight increase per patient, we expect top-line growth for Fresenius to grow in the midsingle digits during the next five years. Additionally, the firm continues to boost its operating margins from a low base, which could positively influence its profit growth trajectory.

In the first quarter, Fresenius Medical Care delivered 5% organic revenue growth and 29% adjusted earnings per share growth that included operating margin expansion, particularly in the care enablement segment's medical technology portfolio, and lower interest costs as it deleverages.

Over the past week, tariff-related news has created significant volatility in the US market, including in medical services-related firms like managed care organizations, caregivers, and medical suppliers.

Fresenius Medical Care treats end-stage renal disease, or ESRD, patients primarily through its dialysis clinic network and related medical technology. Its strengths in these related areas help Fresenius maintain the leading global position in this market. Even with the threat of obesity drug expansion in the long run, we expect the company to benefit from decent demand in developed markets, such as the US, and even faster expansion in emerging markets in the long run. With global ESRD patient growth expected to remain in the low to mid-single digits in the long run, with a slight increase per patient, we expect top-line growth for Fresenius to grow in the midsingle digits during the next five years.

In the fourth quarter, global dialysis services and medical technology leader Fresenius Medical Care turned in revenue growth of 5% in constant currency, excluding divestitures, and adjusted operating income growth of 31%.

Narrow-moat Fresenius Medical Care turned in strong third-quarter results and narrowed its 2024 profit outlook to the top end of its guidance range. After tinkering with our near-term forecast, we do not anticipate changing our EUR 60/$32 per ADR fair value estimates, which remain above recent trades.

Narrow-moat Fresenius Medical Care turned in strong second-quarter results but may have disappointed the market with talk of higher mortality rates that cut into treatments, weak cash flows related to the Change network outlook, and a merely maintained 2024 outlook. At first glance, we do not anticipate changing our fair value estimate, which remains well above recent trades.

Fresenius Medical Care treats end-stage renal disease patients through its dialysis clinic network, medical technology, and care coordination activities. Its strengths in these related areas help Fresenius maintain the leading global position in this market. Even with the threat of obesity drug expansion in the long run, we expect the company to benefit from decent demand in developed markets, such as the U.S., and even faster expansion in emerging markets, such as China, in the long run. With global ESRD patient growth expected to remain in the low to mid-single digits in the long run, we expect top-line growth for Fresenius to grow at a similar pace during the next five years.

Narrow-moat Fresenius Medical Care turned in strong first-quarter results but may have disappointed the market with its weak treatment trends and merely maintained 2024 outlook. Overall, our 2024 expectations remain at the high end of management's outlook, and we do not anticipate changing our fair value estimate, which remains well above recent trades.

GLP-1 drug use is increasing materially in patients with diabetes and obesity, and uncertainty around GLP-1 expansion has added risk to dialysis stocks even as pandemic challenges, including excess mortality and labor costs, are easing for the narrow moat dialysis companies we cover—Baxter, DaVita, Fresenius Medical Care, and Fresenius SE. Despite the concerns, new data rolling in on GLP-1s appears roughly in line with our view that GLP-1 expansion should not materially affect dialysis demand for at least the next decade, as mildly extended kidney disease progression to dialysis may be largely offset by cardiac and first-year survival, or "crash," benefits. Considering this roughly neutral outlook, we find the significant discounts to fair value in dialysis-related stocks compelling.