Fresenius Medical Care (FMS) has accelerated the second tranche of its €1 billion share‑buyback program, committing to repurchase shares worth €415 million between January 12 and May 8 2026. The first tranche was completed ahead of schedule on December 29 2025, and the accelerated timeline signals the company’s confidence in its cash‑flow generation and balance‑sheet strength.
The acceleration is part of the broader “FME Reignite” transformation program, which aims to deliver industry‑leading profitability, scale cost‑saving initiatives, and invest in innovation while returning excess capital to shareholders. Management cites strong financial performance and consistent execution of the strategy as the drivers for moving the buyback forward, indicating that cash‑flow targets have been met earlier than expected and that the company can afford to accelerate shareholder returns without compromising its investment plans.
In the most recent quarter, FMS generated a free‑cash‑flow of €1.2 billion, up 12% from the same period last year, and maintained a net leverage ratio below 1.5x, well below the target of 1.2x set in the FME Reignite plan. The first tranche’s early completion was enabled by a 4% increase in operating income, driven by higher revenue in the Care Delivery segment and disciplined cost management across all three operating units—Care Delivery, Care Enablement, and Value‑Based Care.
Revenue growth was strongest in Care Delivery, which grew 6% YoY to €2.3 billion, supported by a 7% rise in patient volume and a modest price increase. Care Enablement grew 3% to €1.1 billion, while Value‑Based Care remained flat at €0.9 billion, reflecting a shift in payer mix toward bundled payment models. The mix shift contributed to a 0.5 percentage‑point expansion in operating margin, from 9.8% to 10.3%, underscoring the company’s ability to translate volume gains into profitability.
CEO Helen Giza said the acceleration “demonstrates our confidence in the company’s financial health and our commitment to delivering value to shareholders.” CFO Martin Fischer added that the “strong cash‑flow generation on the back of continued business momentum” has allowed the company to accelerate the buyback without compromising its investment in core and growth initiatives. The move also aligns with the FME Reignite goal of returning 30‑40% of earnings to shareholders through dividends and buybacks.
The accelerated buyback reinforces FMS’s capital‑allocation discipline and signals to investors that the company is on track to meet its long‑term profitability targets. By returning capital earlier, FMS can improve its return‑on‑equity profile and maintain flexibility to pursue strategic acquisitions or further innovation in renal care technology.
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