Fresenius Medical Care Shares Drop After Outlook, U.S. Performance Underwhelms

Dow Jones
Feb 24
 

By Adria Calatayud

 

Fresenius Medical Care shares fell after the German dialysis specialist forecast flattish revenue and adjusted earnings in the year ahead amid regulatory headwinds.

Shares in Fresenius Medical Care were down 7.1% in European midday trading Tuesday, having fallen around 10% earlier. The decline erased the stock's gains since the start of 2026.

The company said it expected broadly flat revenue growth for this year when excluding currency movements and that operating profit before special items would remain on a consistent level, ranging from a rise to a fall in the mid-single-percentage digits.

Analysts had forecast revenue growth of 4.3% and growth in operating profit before special items of 1%, both excluding currency movements, according to consensus estimates provided by Vara Research.

The company said it would face regulatory headwinds in 2026, after its profitability was boosted last year by higher-than-expected benefits from a Medicare payment policy known as Transitional Drug Add-on Payment Adjustment, efficiency gains from a cost-savings program and solid business growth.

For the fourth quarter, Fresenius Medical Care made a net profit of 327 million euros ($385.4 million) compared with 67 million euros in the year-earlier period.

Revenue was 5.07 billion euros, down 0.3% on year. When excluding currency changes, revenue was up 7.1%.

The company said operating profit excluding special items climbed 53% at constant currency to 705 million euros.

Analysts expected revenue at 5.03 billion euros and operating profit excluding special items at 633 million euros, according to consensus estimates provided by Vara Research.

In the U.S., treatment volumes were down 0.2% for the fourth quarter, returning to negative territory after a small rise in the prior quarter. The company has been trying to expand its U.S. volumes after the Covid-19 pandemic took a toll on its patient population.

Analysts at Morgan Stanley said Fresenius Medical Care's guidance for 2026 was weaker than expected and implies the company will need a steep ramp up in growth to hit its midterm targets.

 

Write to Adria Calatayud at adria.calatayud@wsj.com

 

(END) Dow Jones Newswires

February 24, 2026 05:51 ET (10:51 GMT)

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