Fresenius Medical Care AG Q1 results disappoint investors

Fresenius Medical Care AG posted first-quarter results that disappointed investors as weak US dialysis volumes continued to weigh on the German company. The shares slumped.

First-quarter net income rose to €251 million ($293 million) on an adjusted basis, the company said Tuesday, below the average analyst estimate of €256 million.

While the results are broadly in line with expectations, the details are “somewhat disappointing,” Citi Group Inc. analysts including Veronika Dubajova wrote in a note. They pointed to another quarter of sluggish US same-market treatments, which they said is key to any meaningful profit-growth acceleration.

Shares fell as much as 9.4% in early Frankfurt trading to the lowest intraday level since October 2024. They were down more than 15% over the past 12 months through Monday’s close.

Since the Covid-19 pandemic, Fresenius Medical has been grappling with elevated mortality among its vulnerable US patient population, which has weighed on earnings.

In the first quarter, same-market treatments in the US declined 0.4% — the steepest decline since the start of 2024, according to data compiled by Bloomberg.

Chief Executive Officer Helen Giza, who took over at the end of 2022, has responded with divestments and a cost-cutting program targeting €1.2 billion in savings by the end of next year.

In the first quarter, the program delivered €50 million in savings, the company said, adding that it exited 64 clinics in the US.

Fresenius Medical is hoping for an improvement in the treatment segment with the US roll-out of its 5008X dialysis machine, which is already widely used in Europe. So far, it’s available in around 100 US clinics.

Quarterly revenue was weighed down by currency effects and divestments, while earnings were supported by cost savings and favorable pricing in the Care Delivery unit. The Care Enablement division, which supplies dialysis machines and technical services, continued to face pressure in China.

Fresenius Medical confirmed its guidance for this year of broadly flat revenue growth and operating income remaining on a consistent level. Bloomberg