Description

Fresenius Medical Care: Value-Based Care Revenue Is Rising — But Why Isn’t It Flowing Through to Operating Income Yet?

Fresenius Medical Care’s third quarter 2025 performance portrays a dynamic mix of achievements and challenges, reflecting the complex landscape the company operates in. The company reported strong organic revenue growth of 10%, with positive contributions across all three operating segments. This growth was paired with an impressive 28% increase in operating income, driven by the implementation of the FME25+ program, which has resulted in sustainable savings, further boosting profitability. The U.S. market showed slightly positive growth in same-market treatments, while international growth reached 1.2%. Despite challenges such as a government shutdown and fluid healthcare policy environment in the U.S., the company managed a step change in profitability, expanding its operating income margin from 9.9% to 11.7%. This was aided by ongoing cost management initiatives and a new capital allocation framework, which included a share buyback program aimed at enhancing shareholder value.