Fresenius Medical Care further accelerates organic revenue development and achieves an inflection in earnings growth, delivering 28% operating income growth in the third quarter of 2025 – Fresenius Medical Care

Fresenius Medical Care Q3 2025 Performance Report: Advancing Sustainable Health and Economic Goals

Strategic Initiatives and Alignment with Sustainable Development Goals (SDGs)

Fresenius Medical Care’s Q3 2025 performance demonstrates a continued commitment to its strategic objectives, which are intrinsically linked to several United Nations Sustainable Development Goals (SDGs). The company’s focus on providing essential services for individuals with renal disease directly supports SDG 3: Good Health and Well-being.

• FME Reignite Strategy: This core strategy advances operational efficiency and financial sustainability, aligning with SDG 8 (Decent Work and Economic Growth) and SDG 12 (Responsible Consumption and Production). The FME25+ transformation program is a key component.
  • Generated EUR 47 million in additional sustainable savings in Q3 2025.
  • Achieved EUR 174 million in savings in the first nine months, nearing the full-year target of EUR 180 million.
  • Projects total sustainable savings of EUR 1,050 million by the end of 2027.
• Portfolio Optimization: The company is refining its operational footprint to enhance its focus on core healthcare delivery. This strategic realignment ensures resources are directed towards maximizing health outcomes, a central tenet of SDG 3.
  • Divestments in Q3 included clinic operations in Brazil and Malaysia.
  • Transactions in 2024 and 2025 are estimated to have a negative impact of approximately one percent on full-year 2025 Group revenue growth.
• Capital Allocation: A new framework includes an initial share buyback program of EUR 1.0 billion, reflecting financial stability and a commitment to shareholder returns, which contributes to broader economic health under SDG 8.
  • As of September 30, 2025, 3.6 million shares were repurchased for EUR 151 million.

Financial Performance Analysis

Revenue Growth

The company reported strong organic revenue growth, indicating robust demand for its life-sustaining products and services, which is fundamental to achieving SDG 3 targets for non-communicable diseases.

1. Group Revenue (Q3 2025):
   • Increased by 3% to EUR 4,885 million.
   • Organic growth stood at 10%.
2. Care Delivery Revenue (Q3 2025):
   • Decreased by 2% to EUR 3,402 million, impacted by divestitures.
   • Organic growth was 6%, driven by reimbursement rate increases and a favorable payor mix.
3. Value-Based Care Revenue (Q3 2025):
   • Grew by 34% to EUR 576 million.
   • Organic growth was 42%, reflecting a significant increase in member months due to contract expansion. This model promotes efficient and effective healthcare, aligning with SDG 3.
4. Care Enablement Revenue (Q3 2025):
   • Remained stable at EUR 1,361 million.
   • Organic growth was 5%, driven by volume growth and positive pricing.
5. Nine-Month Performance:
   • Group revenue increased by 2% to EUR 14,558 million, with 7% organic growth.

Earnings and Profitability

Accelerated earnings growth underscores the company’s operational effectiveness and its capacity for sustained investment in healthcare innovation and infrastructure, contributing to SDG 3 and SDG 9 (Industry, Innovation, and Infrastructure).

• Group Operating Income (Q3 2025):
  • Increased by 3% to EUR 477 million (9.8% margin).
  • Excluding special items, operating income grew significantly by 22% to EUR 574 million, achieving a margin of 11.7%.
• Net Income (Q3 2025):
  • Increased by 29% to EUR 275 million.
• Basic Earnings Per Share (EPS) (Q3 2025):
  • Increased by 30% to EUR 0.94.
• Nine-Month Performance:
  • Group operating income increased by 9% to EUR 1,233 million.
  • Net income increased by 38% to EUR 651 million.
  • Basic EPS increased by 38% to EUR 2.22.

Cash Flow and Debt Management

Prudent financial management is crucial for the long-term sustainability of the organization’s mission. The reduction of net debt strengthens the company’s ability to continue providing essential health services.

• Operating Cash Flow (Q3 2025):
  • Stood at EUR 742 million.
• Free Cash Flow (Q3 2025):
  • Amounted to EUR 550 million.
• Net Leverage Ratio:
  • Improved to 2.6x, down from 2.7x in Q2 2025, demonstrating progress towards a resilient financial structure that supports long-term health investments (SDG 3).

Operational Highlights and Global Impact

The company’s global reach directly reflects its contribution to global health systems and employment.

• Patients: As of September 30, 2025, the company provided care to 293,620 patients, a direct contribution to SDG 3.
• Clinics: Operations were conducted across 3,628 dialysis clinics worldwide.
• Employees: The company employed 109,916 people globally, supporting SDG 8 (Decent Work and Economic Growth).

Corporate Outlook for 2025

Fresenius Medical Care confirms its 2025 outlook, projecting continued growth that will enable further contributions to global health and economic stability.

• Revenue Growth: Expected to be in the positive to low-single-digit percent range.
• Operating Income Growth: Expected to grow by a high-teens to high-twenties percent rate, excluding special items.

Analysis of Sustainable Development Goals in the Article

1. Which SDGs are addressed or connected to the issues highlighted in the article?

1. SDG 3: Good Health and Well-being
   • The article focuses on Fresenius Medical Care, described as the “world’s leading provider of products and services for individuals with renal disease.” Its core business directly contributes to managing non-communicable diseases (NCDs) by providing essential dialysis treatments. The text states the company “treated 293,620 patients in 3,628 dialysis clinics worldwide,” which directly aligns with the goal of ensuring healthy lives.
2. SDG 8: Decent Work and Economic Growth
   • The article details the company’s financial performance, including revenue growth, operating income, and savings programs. This economic activity contributes to overall economic growth. Furthermore, the report mentions that the company had “109,916 employees (headcount) globally,” highlighting its role as a major employer, which is central to SDG 8.
3. SDG 9: Industry, Innovation, and Infrastructure
   • Fresenius Medical Care operates a significant global healthcare infrastructure, consisting of “3,628 dialysis clinics.” This network is crucial for delivering specialized medical services. The article also points to innovation through its “Value-Based Care” segment, which experienced revenue growth of 34%, indicating a shift towards innovative healthcare models. The mention of “virtual power purchase agreements” under the Corporate operating income section suggests efforts towards more sustainable industrial operations.

2. What specific targets under those SDGs can be identified based on the article’s content?

1. Target 3.4: Reduce by one-third premature mortality from non-communicable diseases through prevention and treatment.
   • The company’s primary function is providing dialysis treatments for patients with renal disease, a critical non-communicable disease. By offering these life-sustaining services to approximately 294,000 patients, the company directly contributes to the treatment aspect of this target, helping to manage a chronic condition and prevent premature mortality.
2. Target 3.8: Achieve universal health coverage, including access to quality essential health-care services.
   • The article demonstrates the company’s role in providing essential healthcare services on a global scale through its network of clinics. The mention of “U.S. same market treatment growth” and “international same market treatment growth” indicates an expansion of these services, thereby increasing access to care for patients with renal disease.
3. Target 8.2: Achieve higher levels of economic productivity through diversification, technological upgrading and innovation.
   • The report highlights strong growth in the “Value-Based Care” segment, which represents an innovative approach to healthcare delivery. The company’s overall positive financial performance, including a 3% increase in Group revenue, reflects its economic productivity within the high-value healthcare sector.
4. Target 9.4: Upgrade infrastructure and retrofit industries to make them sustainable.
   • The operation of 3,628 dialysis clinics represents a significant investment in specialized healthcare infrastructure. The article also mentions “virtual power purchase agreements,” which, although a minor detail in the report, points towards an effort to make corporate operations more sustainable by investing in renewable energy.

3. Are there any indicators mentioned or implied in the article that can be used to measure progress towards the identified targets?

1. Indicators for SDG 3 (Good Health and Well-being)
   • Number of patients treated: The article states that “Fresenius Medical Care treated 293,620 patients.” This is a direct indicator of the scale of access to essential healthcare services for a non-communicable disease.
   • Treatment growth rate: The report mentions “U.S. same market treatment growth slightly advanced to 0.1%” and “international same market treatment growth amounted to 1.2%.” These figures serve as indicators of the expansion of healthcare coverage and access to treatment.
   • Number of clinics: The company operates “3,628 dialysis clinics worldwide,” which is an indicator of the physical infrastructure available to deliver care.
2. Indicators for SDG 8 (Decent Work and Economic Growth)
   • Number of employees: The company had “109,916 employees (headcount) globally,” indicating its contribution to global employment.
   • Revenue growth: The article reports that “Group revenue increased by 3% (+8% at constant currency, +10% organic) to EUR 4,885 million.” This is a key indicator of the company’s economic growth and contribution to the economy.
   • Operating income: The “Group operating income increased by 3% (+8% at constant currency) to EUR 477 million,” which measures the company’s profitability and economic viability.
3. Indicators for SDG 9 (Industry, Innovation, and Infrastructure)
   • Growth of innovative models: The “Value-Based Care revenue grew by 34%,” which can be used as an indicator for the adoption and success of innovative business and service delivery models in the healthcare industry.
   • Investment in sustainable operations: The mention of financial results from “virtual power purchase agreements” implies an investment in renewable energy, serving as a qualitative indicator of progress towards sustainable industry practices.

4. Table of SDGs, Targets, and Indicators

Source: freseniusmedicalcare.com