Fresenius SE Stock: Remarkable 6% Jump Drives Recovery

Fresenius SE shares surged impressively on Wednesday, climbing 6.2% to reach €38.84 on the XETRA exchange. The stock approached its 52-week high, peaking temporarily at €39.63, representing nearly a 60% increase from its March 2024 low. This remarkable performance made Fresenius the top gainer in Germany's DAX index, outpacing the broader market with a year-to-date appreciation of approximately 17%. The health care conglomerate's strong showing follows exceptional annual results, with organic revenue growth of 8% to €21.5 billion and adjusted operating profit increasing by 10% at constant currency rates to nearly €2.5 billion. Particularly encouraging for investors was the announcement of a €1 per share dividend resumption after skipping payments the previous year.

Strategic Transformation Yields Results

The impressive market performance validates the company's strategic overhaul under its leadership. After challenging years marked by pandemic disruptions and high debt levels, Fresenius has successfully refocused on two core divisions: the pharmaceutical and medical technology producer Kabi, which posted 9% revenue growth, and Europe's largest hospital operator Helios, which grew by 6%. The company has divested several business units and now treats its dialysis specialist unit merely as a financial investment. Looking forward, management projects organic revenue growth of 4-6% for 2025, with adjusted operating profit expected to rise by 3-7%. The corporation also plans to distribute 30-40% of adjusted earnings as dividends going forward, while continuing to prioritize debt reduction, productivity improvements, and strategic investments in organic growth.