Fresenius raises annual forecast after strong second-quarter results

German healthcare giant Fresenius is more optimistic about the current year after reporting significant gains in the second quarter, prompting an upward revision of its annual earnings forecast. The company now expects its earnings per share to grow by 10 to 15 percent in 2026, an increase from the previously projected 5 to 10 percent growth.

In the second quarter, Fresenius saw its revenue climb 5 percent year-on-year to 5.86 billion euros. Earnings before interest and taxes (EBIT) rose by 10 percent on a currency-adjusted basis to 719 million euros. The net profit for the period stood at 470 million euros. The company highlighted that strong operational performance in its Fresenius Kabi and Fresenius Helios divisions, coupled with an improved interest result, supported these earnings.

Fresenius Kabi, the pharmaceutical division, experienced particularly strong growth in its biopharmaceutical business. Fresenius Helios, which operates over 80 hospitals in Germany, benefited from factors including positive effects from the billing surcharge for patients with statutory health insurance. CEO Michael Sen stated that the company's strategic realignment is paying off with better results.

Since taking over as CEO in October 2022, Michael Sen has implemented significant restructuring measures at Fresenius, which is Germany's largest hospital operator. Non-core assets, such as the Eugin fertility clinic chain, were divested, structures were streamlined, and cost-saving programs were initiated. The close ties with dialysis specialist Fresenius Medical Care (FMC) have also been loosened, with FMC now managed as a financial investment, although Fresenius remains its largest shareholder.