Fresenius Medical Care AG & Co. KGaA Q2 2026 Earnings Report

Fresenius Medical Care AG & Co. KGaA EPS Results

• Actual EPS: $0.66
• Consensus EPS: $0.62
• Beat/Miss: Beat by +$0.04
• One Year Ago EPS: N/A

Fresenius Medical Care AG & Co. KGaA Revenue Results

• Actual Revenue: $5.55 billion
• Expected Revenue: $5.48 billion
• Beat/Miss: Beat by +$67.15 million
• YoY Revenue Growth: N/A

Fresenius Medical Care AG & Co. KGaA Announcement Details

• Quarter: Q2 2026
• Date: 8/3/2026
• Time: Before Market Opens
• Conference Call Date: Tuesday, August 4, 2026
• Conference Call Time: 4:00AM ET

Fresenius Medical Care AG & Co. KGaA (NYSE:FMS) is the world’s largest integrated provider of products and services for individuals with renal diseases. The company’s primary business activities encompass the operation of dialysis clinics and the manufacture and distribution of dialysis equipment, dialysis machines, dialyzers, consumables and related therapies. Through its global network of clinics, Fresenius Medical Care delivers comprehensive kidney care, including hemodialysis and peritoneal dialysis treatments, patient education and support services.

In its products segment, the company designs and produces dialysis machines, water treatment systems and disposables such as high‐flux dialyzers and bloodlines. These offerings are complemented by a range of pharmaceuticals, including anticoagulants and iron therapies, along with digital health solutions for remote patient monitoring and data management. By integrating clinical expertise with proprietary technology, Fresenius Medical Care aims to improve treatment outcomes and enhance patient quality of life.

Founded in 1996 as a spin‐off from the Fresenius SE healthcare group, Fresenius Medical Care is headquartered in Bad Homburg, Germany. The company maintains a presence in over 50 countries across North America, Europe, Latin America and the Asia Pacific region. Its global reach is supported by manufacturing facilities, research centers and a network of more than 4,000 dialysis clinics, serving hundreds of thousands of patients worldwide.

Fresenius Medical Care AG & Co. KGaA Q2 2026 Earnings Call Transcript

Key Takeaways

• Positive Sentiment: Second-quarter profitability improved significantly: operating income rose 23% at constant currency, the operating margin expanded by 180 basis points, and organic revenue grew 5%. Management confirmed its full-year outlook for broadly flat revenue and operating income within a mid-single-digit percentage range.
• Negative Sentiment: U.S. same-market treatment growth declined 0.9% in Q2 as Fresenius acknowledged an operational miss in capturing referrals, with May and June deteriorating further. Management now expects U.S. treatment growth to remain around the Q2 level for 2026, with a recovery likely taking hold mainly in 2027.
• Positive Sentiment: Care Delivery operating income increased 45%, supported by improved rates and revenue-cycle management, clinic closures, and FME25+ savings. Value-Based Care also delivered another profitable quarter, with operating income of EUR 18 million versus a EUR 9 million loss a year earlier.
• Positive Sentiment: The 5008X rollout remains on track, with 227 U.S. clinics converted and approximately 20% of the company’s own machines targeted for conversion in 2026. Early high-volume HDF experience showed encouraging patient and clinical feedback, including fewer muscle cramps and more than 70% of research-cohort treatments reaching the target convective volume.
• Negative Sentiment: Care Enablement earnings fell 5% as China’s regulatory and tender pressures continued, while raw-material and logistics inflation related to the Middle East conflict added costs. TDAPA benefits are also expected to reverse into a sizable second-half headwind, although the full-year impact is now estimated at negative EUR 50 million versus the previously expected negative EUR 100 million.

Presentation

[Operator]

Ladies and gentlemen, welcome to the report on the second quarter 2026 earnings release and conference call. I am Valentina, the call's co-operator. I would like to remind you that all participants will be in listen-only mode, and the conference is being recorded. Presentation will be followed by a Q&A session. You can register for questions at any time by pressing star and one on your telephone. For operator assistance, please press star and zero. The conference must not be recorded for publication or broadcast. At this time, it's my pleasure to hand over to Dr. Dominik Heger. Please go ahead.

[Dominik Heger, EVP and Head of Investor Relations, Strategic Development and Communications at Fresenius Medical Care]

Thank you, Valentina. I would like to welcome everyone to our earnings call for the second quarter of 2026. I appreciate your flexibility to join this earlier call. We felt it is more helpful to have the call earlier, given that we had to publish earlier than originally planned. I do apologize for the inconvenience, in particular for those of you who are located in a different time zone or those of you who cover another company hosting a call in parallel right now. As always, I start out the call by mentioning our caution in language that is in our safe harbor statement, as well as in our presentation and in all the materials that we have distributed earlier today. For further details concerning risks and uncertainties, please refer to these documents and to our SEC filings. The call is scheduled for one hour.

[Dominik Heger, EVP and Head of Investor Relations, Strategic Development and Communications at Fresenius Medical Care]

In order to give everyone the chance to ask questions, we would limit the number of questions, as always, to two. Thank you for making this work. Let me now welcome Helen Giza, CEO and Chair of the Management Board, and Martin Fischer, our Chief Financial Officer. Helen, the floor is yours.

[Helen Giza, Chair of Management Board and CEO at Fresenius Medical Care]

Thank you, Dominik. Welcome everyone, and thank you for joining at this earlier time of the day. I will begin my prepared remarks on slide four. We continued our strong start to the year, delivering another quarter of highly profitable growth, supported by solid organic revenue development and further improvement in profitability. Operating income growth accelerated to 23%, in line with our planned phasing for the year, and we realized another quarter of margin expansion. This was also supported by the continued execution of our FME25+ transformation program, which delivered EUR 67 million of sustainable savings during the quarter. Excuse me. We also completed our initial EUR 1 billion share buyback program on an accelerated timeline and have already launched a second EUR 1 billion program, underscoring our continued focus on disciplined capital allocation and reigniting shareholder returns.

[Helen Giza, Chair of Management Board and CEO at Fresenius Medical Care]

With a net leverage ratio of 2.6x, we remain around the lower end of our target corridor and continue to maintain a strong financial position. With that overview, let me turn to the key second quarter highlights across our operating segments on slide five. Beginning with Care Delivery, the international markets delivered 0.8% same-market treatment growth. In the U.S., same-market treatment growth declined by 0.9%. At the same time, I am genuinely encouraged by the progress we are seeing where it matters most, for our patients. Our continued focus on quality and patient care is making a real difference. Missed treatment and mortality improved in the quarter. These are outcomes that are deeply meaningful for the patients who rely on us every day and for all of us who are committed to their care.

[Helen Giza, Chair of Management Board and CEO at Fresenius Medical Care]

The same-market treatment growth declined due to our own clear operational miss in our business development approach to capture our fair market share of referrals. This exposed an execution gap and led to a further softening of referrals in Q2 compared with Q1. We have promptly addressed this with an organizational change, enabling rapid implementation of the necessary prepared measures. While these measures will take a few months to gain traction, we remain confident in our path to restoring referral rates in the affected areas. Given the compounding effect of lower first-half referrals on the rest of the year, we now expect U.S. same-market treatment growth in 2026 to be around the Q2 level. I also want to recognize the strong execution driving accelerating momentum across several strategic priorities under our Reignite strategy.

[Helen Giza, Chair of Management Board and CEO at Fresenius Medical Care]

We are making significant progress accelerating the rollout of our 5008X in our clinics in the U.S. We have a dedicated slide on high-volume HDF coming up, where I will provide a broader update. As we continue to strengthen our cooperation, we remain disciplined in optimizing our clinic network. We have successfully completed the clinic footprint optimization, exiting around 100 select underperforming clinics. We are realizing favorable rates and seeing contributions from our revenue cycle management initiatives, providing further evidence that our operational improvement efforts are gaining traction.

[Helen Giza, Chair of Management Board and CEO at Fresenius Medical Care]

As already indicated, we are beginning to see the impact of our catheter-related-bloodstream infection prevention efforts. We saw a 23% reduction in bloodstream infections over the past year, which supports lower infection-related hospitalizations and also translates into lower patient mortality risk. Next, on Value-Based Care. We continue to build on the strong momentum we have established in this business.

[Helen Giza, Chair of Management Board and CEO at Fresenius Medical Care]

The quarter reflected continued positive operating income as well as an increase in member months, driven by contracting growth. We are demonstrating how our vertically integrated model translates into better patient outcomes. We are seeing meaningful improvements across key clinical measures such as reduced mistreatments, lowered mortality, and hospitalization rates when FME patients are managed by InterWell Health. On October 12th, we will host an expert call with Tommy O'Connor, the CEO of Value-Based Care, where we will give more insights into this segment. Information about the call is available on our investor relations website. Turning to Care Enablement, the 5008X rollout gained also momentum for Care Enablement, with growing sales supporting favorable business growth. Overall, we continue to realize positive pricing and volume development outside of China, driving momentum in our underlying business. Despite recent headwinds from regulatory changes, China remains an attractive products market for FME.

[Helen Giza, Chair of Management Board and CEO at Fresenius Medical Care]

With refreshed leadership, we are reviewing our strategy to win, as well as our product portfolio for this market. We are navigating elevated raw material and logistics costs driven by the conflict in the Middle East. While these external cost pressures remain a headwind and are something we are monitoring closely, they are currently absorbed in our guidance range. This further reinforces the importance of our continued execution of our FME25+ program to drive sustainable savings. Before I turn to the 5008X update, there are two other innovations that I want to highlight. Recently, we announced the introduction of TherapyWise, a cloud-based analytics capability designed to provide retrospective program-level insight into kidney replacement therapy delivered in acute and hospital critical care settings. TherapyWise reflects our continued focus on innovation in critical care by applying data analytics.

[Helen Giza, Chair of Management Board and CEO at Fresenius Medical Care]

This helps hospital and clinical leaders gain visibility into how kidney replacement therapy is delivered across their organizations, supporting informed discussions around workflow, consistency, and quality improvement. We also launched Kinexus, marking a significant milestone in our home dialysis strategy and our broader digital transformation journey. By bringing peritoneal dialysis and home hemodialysis capabilities together on a single platform, we are creating a more connected experience for patients, caregivers, and clinical teams. We have already achieved our patient go-live with encouraging initial feedback, and we look forward to expanding adoption as we continue to scale the platform globally. Most importantly, Kinexus establishes a global digital foundation that will enable future innovation and help us advance our commitment to delivering high-quality, person-centered home care. Next on slide six, I'm excited to update you on the progress we are making with our 5008X rollout, which is accelerating as planned.

[Helen Giza, Chair of Management Board and CEO at Fresenius Medical Care]

We are firmly on track to meet our 2026 targets, including converting around 20% of our machines in our own clinics. By late July, we had converted 227 clinics across 23 states, representing 10% of our machine base. Of the more than 600,000 treatments on the 5008X, around 170,000 have been HDF and more than 100,000 high-volume HDF. So far, we have produced 4 million consumables for the 5008X, which is in line with our plan and is rapidly ramping up. Our extensive training efforts have covered around 5,000 renal nurses and patient care technicians. It has been a tremendous undertaking to achieve all of this, and I am proud of how much we have accomplished so far. Last Wednesday, we announced BEACON-US, which is a major research initiative designed to generate real-world evidence for high-volume HDF in routine U.S. clinical practice.

[Helen Giza, Chair of Management Board and CEO at Fresenius Medical Care]

This reflects our commitment to bringing innovation to patients thoughtfully, responsibly, and with rigorous scientific evaluation at scale. We are encouraged by the positive early experiences we are seeing from both patients and clinicians. To give you some examples, patients report feeling better both during and after dialysis, and for example, data show 40% fewer muscle cramps. More than 70% of treatments using AutoSub plus technology in our research cohort are already reaching the high-volume HDF target of at least 23 L of convective volume per session. Clinical experience suggests simplified clinician workflows, optimized resource utilization, including reduced water consumption, and a much quieter overall dialysis clinic experience. Early observations are tracking consistently with previously published international randomized and real-world studies, including the landmark EU-funded CONVINCE study, that collectively have associated high-volume HDF with fewer hospitalizations, fewer mistreatments, and improved survival outcomes compared with conventional hemodialysis.

[Helen Giza, Chair of Management Board and CEO at Fresenius Medical Care]

I will now hand over to Martin to walk you through the second quarter financials in more detail.

[Martin Fischer, CFO at Fresenius Medical Care]

Thank you, Helen. Welcome everyone. I will continue on slide eight. In the second quarter, we achieved solid organic group revenue growth of 5%, supported by growth in all three operating segments. At constant currency, revenue increased by 4%. Regulatory pressure in China continued to pose a challenge to revenue development in Care Enablement. Divestitures negatively impacted group revenue development by 50 basis points in the second quarter. For the full year, we continue to assume an unfavorable impact on year-over-year revenue growth of about 30 basis points from the execution of our portfolio optimization plan in 2025 and 2026. We significantly increased operating income by 23% at constant currency. This growth was driven by contributions from Care Delivery and Value-Based Care segments and is in line with our planned phasing for 2026.

[Martin Fischer, CFO at Fresenius Medical Care]

Special items in the second quarter amounted to EUR -103 million, mainly related to the TAVNEOS impact. As background, the European Commission's recommended revocation of the TAVNEOS marketing authorization led to an impairment of intangible assets at Vifor Fresenius Medical Care Renal Pharma. That resulted in a negative impact on our income from equity method investees of EUR 71 million, which was treated as a special item. Special items further include EUR 42 million FME25+ one-time cost and also positive effects from the Humacyte reevaluation. I will continue on slide nine. Our group operating margin again expanded and further improved by 180 basis points. Care Delivery as well as Value-Based Care contributed positively. I will cover the drivers of the segment profitability a little bit later. The greater intersegment elimination reflects the growing sales of the 5008X in our clinics in the U.S.

[Martin Fischer, CFO at Fresenius Medical Care]

With further advancing our rollout, this trend will continue. Corporate costs increased by EUR 47 million, mainly driven by the impact from virtual power purchase agreements and the planned cost of the strategic IT platform investment as we continue to transition to SAP S/4HANA. In addition, FX translation effects had an impact of negative EUR 19 million this quarter. The average U.S. dollar exchange rate in the second quarter was 1.16 compared to 1.17 in the first quarter and compared to 1.13 in the second quarter of 2025. I will now walk you through the business development in each segment, starting with Care Delivery on slide 10. Care Delivery realized 5% revenue growth at constant currency and organic revenue growth of 7%.

[Martin Fischer, CFO at Fresenius Medical Care]

In the U.S., organic growth of 7% was supported by the positive impact from TDAPA reimbursement regulations, favorable rate development, and continued progress in revenue cycle management initiatives, further enhancing revenue yield. These benefits were partially offset by lower treatment volumes driven by the referral dynamics Helen discussed earlier. The international business continued to contribute positively. Divestitures as part of our portfolio optimization plan negatively impacted revenue growth by around 90 basis points. The main driver here was the prior year divestment of our clinics in Brazil. Care Delivery achieved strong earnings growth in line with planned phasing for the year, accelerating operating income growth to 45% with a 390 basis point step-up in margin. Importantly, underlying operating income, excluding the TDAPA effects, improved by 34%.

[Martin Fischer, CFO at Fresenius Medical Care]

This improvement was driven by higher rates, FME25+ contributions, in particular from the clinic closures, as well as benefits from revenue cycle management. Additionally, the growth was supported by a lower prior-year base, which includes effects such as elevated medical benefit costs. This more than offsets the impact from lower treatment volumes in the United States. As assumed, benefits from TDAPA reimbursement regulations for phosphate binders and catheter lock solutions were a driver of earnings, with around EUR 80 million year-over-year benefit in the quarter. The TDAPA effects are assumed to be a headwind in the remainder of the year. Moving on to Value-Based Care on slide 11. Revenue in the Value-Based Care segment grew by 9% on both organic and constant-currency basis. This was driven by an increased number of member months and the favorable effect from premium rates.

[Martin Fischer, CFO at Fresenius Medical Care]

Revenue increase was partially offset by the change of the risk type for a large contract, which resulted in a different type of accounting treatment and lower revenue recognition. Value-Based Care delivered a strong improvement in profitability in the second quarter, with operating income increasing to EUR 18 million from a EUR 9 million loss in the prior year. The margin improved by 500 basis points, marking another profitable quarter. Supporting favorable business growth in the quarter was an improved savings rate reflecting the strength of our contracting. FME25+ savings additionally had a smaller but positive effect on earnings as well. Looking ahead, due to the positive business development, we expect 2026 revenue for Value-Based Care to decline by EUR 150 million to EUR 200 million, which is lower than the initially assumed EUR 300 million decline. I will finish the segment overview with Care Enablement on slide 12.

[Martin Fischer, CFO at Fresenius Medical Care]

Care Enablement delivered organic revenue growth of 3%, supported by continued positive pricing and volumes outside China. Regulatory measures and stricter tender requirements in China remained a headwind as assumed. However, the underlying momentum across the rest of the business continues to be encouraging, with growing sales of the 5008X increasingly contributing to that momentum as well. Care Enablement earnings declined by 5% in the quarter, reflecting the adverse regulatory impact in China, as well as increased inflationary pressure, including higher raw material costs and elevated logistic expenses related to the Middle East conflict.

[Martin Fischer, CFO at Fresenius Medical Care]

As the Middle East conflict continues, we are closely monitoring the increasing inflationary pressures and implementing mitigation measures where possible. Currently, these higher costs, especially for raw materials and transportation, are absorbed in our guidance range. For our Care Enablement China business, as expected, we saw a headwind of around EUR 20 million in the second quarter.

[Martin Fischer, CFO at Fresenius Medical Care]

These negative effects were partially offset by positive volume and price effects outside of China and continued contributions from FME25+ savings. Next, I will look at cash flow growth on slide 13. We delivered a strong increase in operating cash flow of 11% in the second quarter, primarily driven by disciplined working capital management. Free cash flow remained stable at EUR 625 million, while we increased our investment in the business, reflecting the continued strength of our underlying cash generation. Total net debt and lease liabilities increased by 6% year-over-year, as expected. After canceling 8.5% of shares, which we bought back as part of the share buyback program completed in April of this year, we initiated a new share buyback program starting in May with a total volume of around a further EUR 1 billion.

[Martin Fischer, CFO at Fresenius Medical Care]

The new program will be executed in tranches over a 12-month period, with the first tranche of up to EUR 600 million expected to be completed by mid-December. By the end of the second quarter, we already repurchased 2.5 million shares for EUR 94 million, representing 0.9% of total share capital and approximately 16% of the first tranche. After initiating our new share buyback program, we continue to maintain a net leverage ratio of 2.6x, remaining around the lower end of our target corridor of 2.5x to 3x, and underscoring the strength of our balance sheet and disciplined approach to capital allocation. I will now hand back to you, Helen.

[Helen Giza, Chair of Management Board and CEO at Fresenius Medical Care]

Thank you, Martin. I will pick up with our outlook on slide 15. We continue to expect a broadly flat revenue development. For earnings, our priority is to sustain the higher level of profitability established in 2025. Accordingly, we expect operating income to remain at a consistently elevated level in 2026 with an upside/downside range of a mid-single-digit percentage change. While we do not provide quarterly phasing, we communicated that we expected a strong first-half earnings contribution in 2026, supported by the mentioned underlying earnings improvement and positive TDAPA effects. TDAPA is expected to become a sizable headwind in the third and fourth quarters, resulting in negative earnings growth in the second half. For full-year TDAPA contributions, we now expect a lower year-over-year headwind of around EUR 50 million, compared with the previously anticipated negative impact of around EUR 100 million.

[Helen Giza, Chair of Management Board and CEO at Fresenius Medical Care]

The second quarter demonstrates that the strategic actions we are taking are yielding meaningful improvements in underlying profitability and Care Delivery. Despite the headwinds from lower treatment volumes in the U.S. and a tougher base in the second half of the year, we expect continued improvement in the underlying profitability of Care Delivery. Overall, we expect to deliver Care Enablement margin improvement in the second half and full year 2026 as we continue to execute our Reignite strategy while offsetting increased inflationary pressure from the Middle East conflict in our Care Enablement business. We continue to assume Value-Based Care to perform around breakeven for the year, reflecting the assumed phasing of contributions and prior-year effects. Given our strong first half performance and current expectations for the remainder of the year, we are confirming our full-year outlook.

[Helen Giza, Chair of Management Board and CEO at Fresenius Medical Care]

This concludes our prepared remarks. I will now hand back to Dominik to begin the Q&A session.

[Dominik Heger, EVP and Head of Investor Relations, Strategic Development and Communications at Fresenius Medical Care]

Thank you, Helen. Thank you, Martin. Before I hand over for the Q&A, I would like to remind everyone to limit your questions to two. If we have remaining time, we can go another round. With that, I hand it over to Valentina to open the Q&A, please.

[Operator]

Thank you. We will now begin the question-and-answer session. Anyone who wishes to ask a question may press star and one on their telephone. You will hear a tone to confirm that you have entered the queue. If you wish to remove yourself from the question queue, you may press star and two. Questioners on the phone are requested to disable the loudspeaker mode while asking a question. In the interest of time, please limit yourself to two questions. Anyone who has a question may press star and one at this time. Back over to you for the first question.

[Dominik Heger, EVP and Head of Investor Relations, Strategic Development and Communications at Fresenius Medical Care]

Thank you, Valentina. The first question comes from Jonathan from Barclays. Jonathan, the floor is yours.

[Analyst at Barclays]

Good morning. Thank you for taking my questions. The first one is just on same-market treatment growth. If you could just help us to understand really the detail on the deceleration from Q1 to Q2 in that number, specifically on the referrals piece, I'm really just trying to understand what you could do to improve the inflow of patients there. How should we think about the relative impact of clinic closures, referrals, and the outflow issues of patients that you'd previously pointed to? Thank you for giving the 2026 expectation. Is it fair to assume that you expect same-market treatment growth in the U.S. to get worse throughout the year? How do you see the phasing, and where do you expect to exit 2027 from a same-market treatment growth perspective? Thank you.

[Helen Giza, Chair of Management Board and CEO at Fresenius Medical Care]

Thanks, Jonathan. I'll take that question. Recognizing there's probably a lot of similar questions around same-market treatment growth. I think it's helpful to kind of just maybe walk through that in a bit more detail than normal. As we already outlined, the same-market treatment growth declined by 0.9% in the quarter. At the same time, we are encouraged by the progress we are seeing where it matters for our patients, and that focus on quality and patient care is making a real difference. We were really encouraged to see mistreatments and mortality declining in the quarter. As we discussed it in Q1, we are executing a lot in parallel in the U.S. dialysis business, which is an operational stretch. We obviously exited around 100 clinics with execution speed, I would say in half one. We've closed clinics faster than we ever have before.

[Helen Giza, Chair of Management Board and CEO at Fresenius Medical Care]

The progress on HDF is exciting, but at the same time, that does cause a fair amount of work in the clinics that we are impacting there. At the same time, there's been major clinic operations that touched upon kind of a couple of 1,000 people, with the whole focus here on driving profitable growth. In the same time, recognizing that we had the ACA subsidies expiring, we also have implemented some enhanced insurance verification on our patients. While we are pleased with the quality and patient safety initiatives, obviously rolling out these solutions did also have an impact on the operation. All of that is really to say the clinic operations are managing significant demands in parallel. I think we saw that emerge on referrals in Q1 with a little softness there.

[Helen Giza, Chair of Management Board and CEO at Fresenius Medical Care]

I would say that there was an underestimation of the impact that created. As we came out of Q1 into Q2, it was clear that while that disruption may have been understood, it was clear that it was masking an underlying issue. I think as I've kind of worked closely with the team there and with Cassie directly, it's clear now that we have an operational miss, specifically in the business development approach, which is capturing our fair market share of referrals. We are not seeing a market issue. We are seeing a volume capture issue in terms of getting the patients that we see into our clinics. That was the execution gap that has led to a further softening of referrals in Q2 compared to Q1. We are all over it. We obviously saw the organizational changes.

[Helen Giza, Chair of Management Board and CEO at Fresenius Medical Care]

We've also made organizational changes in the business development group. That will take a few months to gain traction. Cassie's crystal clear of those priorities, and we do remain confident in our path to restoring those referral rates in those effective areas. Obviously, we're looking at this region by region. However, given the compounding effect of the lower first-half referrals on the rest of the year, that's why we are now saying we expect the same-market treatment growth in 2026 to be around the Q2 level. That compounding effect has caused a gap. We also know that we've got to do work that will take time. That's why I think we're trying to be realistic here and call the year at a similar level to Q2. We do expect that work to take hold and for that benefit to pull through.

[Helen Giza, Chair of Management Board and CEO at Fresenius Medical Care]

Realistically, I think we're seeing that more into 2027 than we were originally thinking in 2026. In terms of kind of the exit rate for 2027, clearly I'm not going to speak to that today. I think we can kind of see where we see 2026, what 2027 looks like. I need a few more quarters under our belt, obviously, we'll be able to give that outlook when we get to February. The areas of focus, as you can appreciate, are making sure that when we get those referrals, they're accepted referrals and we are gaining our fair share there. We had said, and I think it's fair to acknowledge this, that we didn't have an inflow issue earlier or maybe at the end of last year. It was an outflow issue. I think we have done some significant work on outflows.

[Helen Giza, Chair of Management Board and CEO at Fresenius Medical Care]

That's really showing up in the mortality and mistreatment numbers. What we have now is not a market or a patient issue. We have an accepted referral, an inflow issue that is 1,000% the focus of Cassie and the organization. I think that answered all the pieces there. Apologies for the longer answer. I think it was one that's on a lot of people's minds.

[Analyst at Barclays]

That's great. Thank you very much.

[Helen Giza, Chair of Management Board and CEO at Fresenius Medical Care]

Of course.

[Dominik Heger, EVP and Head of Investor Relations, Strategic Development and Communications at Fresenius Medical Care]

Thank you. The next question comes from Veronika from Citi. Veronika, the floor is yours.

[Veronika Dubajova, Analyst at Citi]

Hello, good morning, and thank you, guys, for taking my questions. I have two, please. Apologies, the first one's going to be on the same market. Helen, I just want to get a better shape of understanding of the quarter. I appreciate you don't report monthly, but I remember when you were on the road, you were talking about April being down 40 basis points, so not hugely similar, which would suggest that May and June really sort of fell off the cliff in terms of U.S.A. market treatment growth rate. I was kind of wondering if you could comment on that.

[Veronika Dubajova, Analyst at Citi]

I guess if you have any early indications for how the referral piece is improving in July relative to how poor it must have been in May and June, that might be helpful to give us all a bit of confidence in terms of the forward path. Then my second question is on the TDAPA phosphate binder assumption for the year. By my math, you're probably at around EUR 130 already for H1. It sounds like the new guidance is EUR 150-EUR 170. Just trying to understand if maybe you're being a little too conservative on that, given how strong the first half of the year has come in. Thank you, guys.

[Helen Giza, Chair of Management Board and CEO at Fresenius Medical Care]

Thanks, Veronika. I will take the same-market treatment growth, and I will have Martin walk us through the TDAPA numbers, because I know there is a lot of numbers here on that one. You are right. When we were on the road in April, we were already indicating that April may be kind of a similar level coming out of the softness of Q1. Do not forget, April still had the benefit of the lower flu base in 2025. That was kind of maybe also not giving us the clear picture. There is no question, as you see the number for the quarter, that May and June did deteriorate. I think that is where the focus has been over the last couple of months, is really getting under what the root cause is and where the area of focus was.

[Helen Giza, Chair of Management Board and CEO at Fresenius Medical Care]

I can buy disruption to a point, but we also have to make sure that the underlying cooperation is operating as we expect it to. I am the last person to want to speak to an operational miss, but clearly we have one here. That is why I think we are just being careful on how we guide the rest of the year. In July, I have not seen numbers yet, but I think the fact that we are calling it for a similar level to Q2, I do not expect to see the improvement overnight, but I do expect to see it take hold as we go through the next couple of quarters here. Martin, do you want to take TDAPA?

[Martin Fischer, CFO at Fresenius Medical Care]

Yes. Hi, Veronika. On TDAPA, as we said, we have seen about EUR 80 million effect in Q2. Also, we said that we expect, after the first half-year tailwinds, this to turn into a headwind for Q3 and Q4. Total TDAPA contribution, we are now saying will be a negative EUR 50 million overall on a year-over-year basis, and that is reduced from around EUR 100 million they had on the previous expectation. As a reminder, we had last year a EUR 310 million positive year-over-year contribution, and we said therein there was a EUR 90 million DefenCath. DefenCath is unchanged. EUR +90 million in the first half, EUR -90 million in the second half. Year-over-year, that is a wash or a zero effect.

[Martin Fischer, CFO at Fresenius Medical Care]

For the binders, yes, we did see in the first half around the EUR 70 million positivity year-over-year, and we expect this to turn into a headwind of around EUR 120 million year-over-year in the second half, resulting in the EUR 50 million for the full year. The lower headwinds is predominantly driven by our pharma business, where we see lower-than-expected headwinds, and that gives us or gives you an impression on the overall TDAPA picture.

[Veronika Dubajova, Analyst at Citi]

That's helpful. Thank you. Helen, can I just follow up? One of the things that really struck me this quarter is the volume growth got worse in the U.S. clinics business, but it looks like your revenue, your mix is good, your revenue management is good. Is there a risk here that you're sort of so focused on profitability that you've ended up at a place where volume growth is suffering? Is that the issue that we're looking at?

[Helen Giza, Chair of Management Board and CEO at Fresenius Medical Care]

No, I don't believe so. The work that we identified on rate and yield were very obvious things for us to go after where we were lagging, and we've made tremendous strides in those. In many ways, they're different teams internally within CD as well, focused on those. We will look at profitability measures like the clinic closures, where we really can't see a way to make that clinic profitable. That obviously has been a profitability focus for us, but not at the detriment of the rate and the yield that you're talking about. We clearly knew that when we were closing these clinics, while we've held on to a significant portion of these patients, we knew we were giving up some of that volume, and we saw that play out in the market in Q1.

[Helen Giza, Chair of Management Board and CEO at Fresenius Medical Care]

I expect that to continue to play out in the market in Q2. I think that was a smaller piece of the overall same-market treatment growth development, though. We're very mindful, Veronika, of what trade-offs we are making, and we don't go into any of them lightly. Clearly, the profitability play on both the restructure and reorg and the clinic closures has been meaningful for us, and a smaller part of that same-market treatment growth give-up. The real issue here is really focused to the business development area on accepted referrals. We can see that by area. It is isolated, which is why I'm kind of confident that we've got the right plans in place, we've got the right people now in place, and we can get at it.

[Dominik Heger, EVP and Head of Investor Relations, Strategic Development and Communications at Fresenius Medical Care]

Okay. Good. Thank you. The next question comes from Oliver from ODDO BHF. Oliver, the floor is yours.

[Oliver Metzger, Analyst at ODDO BHF]

Good morning. Two questions from my side. First, about the payer or commercial mix. Would you describe that your started initiatives to improve the mix since last fall have already contributed significantly to some of these mix improvements? Second question is still very early days, but we saw recently the first indications about the bundle rate, which also caused some volatility in the share price. Could you share with us how you think about the first indications and, yes, it will still change, but it would be great to hear your view.

[Helen Giza, Chair of Management Board and CEO at Fresenius Medical Care]

Yeah. Thanks, Oliver. I think I can tackle both of those. On the commercial mix, we continue to be very encouraged by the improvements that we see there. The rate improvement is real. We've done a lot of work in that area. It is slightly down to ACA. That obviously has developed in line with our expectations, but overall, really pleased with the work that has been done on the commercial mix. On the bundle rate, the 1%, always disappointing. Clearly, we're in a preliminary period. We're offering up a lot of comments to the administration on the moving pieces of that. We'll see what the final brings, but overall, it's always challenging when it's less than inflation.

[Oliver Metzger, Analyst at ODDO BHF]

Yeah. I was thinking less about the bundle rate, but more about also the additions which come to the total rate.

[Helen Giza, Chair of Management Board and CEO at Fresenius Medical Care]

Oh, you mean the TDAPA add-on payment?

[Oliver Metzger, Analyst at ODDO BHF]

Yes.

[Helen Giza, Chair of Management Board and CEO at Fresenius Medical Care]

For-

[Oliver Metzger, Analyst at ODDO BHF]

Yes. Yeah

[Helen Giza, Chair of Management Board and CEO at Fresenius Medical Care]

Oh, okay. Yeah, sorry. I heard you say bundle and thought you were talking about the PPS rate that also came out since last quarter.

[Oliver Metzger, Analyst at ODDO BHF]

No, that's all right. I said since this quarter. I meant also including TDAPA. Sorry.

[Helen Giza, Chair of Management Board and CEO at Fresenius Medical Care]

Yeah. Look, two things there. Again, some of this is preliminary. We do expect the government to continue to capture the pricing for the next couple of quarters before it comes final. For that, we would expect that payment to come down as it brings in more quarters reflecting the lower prices and the rebates that exist in that. That should come down as we get to final. I think what we would see, we wouldn't be surprised if that continues to develop in line with our expectations. It's high right now just because it's, I think it's a two-quarter lag off to what more data would come in and show.

[Oliver Metzger, Analyst at ODDO BHF]

Okay, great. Thank you.

[Dominik Heger, EVP and Head of Investor Relations, Strategic Development and Communications at Fresenius Medical Care]

Good. Thank you. The next question comes from Aisyah from Morgan Stanley. Aisyah, the floor is yours.

[Aisyah Noor, Analyst at Morgan Stanley]

Hi. Good morning, Helen and Martin. Thanks for taking my question. My first one is also, unfortunately, on the same-market treatment growth, but for the international number. That number was quite weak and the weakest we've seen in two years. Were there any reimbursements there in the past that supported the growth and has resulted in a lower number in the quarter? My second question was on the ACA headwind that you expect. I guess, what was the number for the quarter, your expectations for 2026, and any early thoughts on the ACA headwind for 2027? Thank you.

[Helen Giza, Chair of Management Board and CEO at Fresenius Medical Care]

Yeah. Thanks, Aisyah. On the international same-market treatment growth, clearly there's a mix effect there. Clearly, we have a lot of countries and a lot of markets that we are focusing on. I think the piece that kind of maybe gets lost in this is we have exited some markets that had higher growth rates, so that would have an effect, and it's kind of a little bit of mix on the mix in the countries like Brazil and Malaysia, for example. As we already mentioned, the kind of flu impacts in Q2 as well. Nothing that we are overly concerned about there. On the ACA, we had kind of sized a EUR 50 million headwind for the full year. We had been watching that very closely, obviously in Q1 to see how sticky this was.

[Helen Giza, Chair of Management Board and CEO at Fresenius Medical Care]

What would happen once patients had to start paying their premiums. It did step up as expected in Q2, which has meant that we've seen existing patients leave the exchange plans due to the affordability issues. We have seen some patients move to other coverage like Medicare Advantage or Medicare. Of course, some are no longer treating with us. The underlying headwind remains consistent with our initial expectation of that EUR 50 million for the full year. What we're also seeing is that we have been able to reduce the impact on our commercial mix by expanded payer relationships and signing new contracts in other geographies.

[Helen Giza, Chair of Management Board and CEO at Fresenius Medical Care]

While it starts to get really difficult to tease out what patient went where, we can see what happened on the ACA exchanges, but anything else that results from that will be picked up in business growth moving forward. We won't continue to track this ACA move. I think we've kind of been able to ring-fence it for 2026. All kind of played out as expected, even though there was this weird dynamic between Q1 and Q2, we're back where we thought we would be.

[Aisyah Noor, Analyst at Morgan Stanley]

Thanks. If I can interpret your comments, and assuming that this impact increases over the course of the year towards the EUR 50 million you had expected for the full year, would it be fair to assume it's something like EUR 10 million this quarter, EUR 50 million next quarter, EUR 25 million the quarter after that? Or is it more of a linear progression?

[Helen Giza, Chair of Management Board and CEO at Fresenius Medical Care]

Probably neither. It's been a bit lumpy because of what happened in Q1 and then some of this grace period and then how patients have fallen out. I think we're not getting into the quarter-by-quarter, but just the whole EUR 50 million sizing for the year. Developed in line with our half-one, half-two phasing within our guidance range.

[Aisyah Noor, Analyst at Morgan Stanley]

Understood. Thank you so much.

[Helen Giza, Chair of Management Board and CEO at Fresenius Medical Care]

Okay.

[Dominik Heger, EVP and Head of Investor Relations, Strategic Development and Communications at Fresenius Medical Care]

Thank you. The next question comes from Hugo from BNPP. Hugo, the floor is yours.

[Hugo Solvet, Analyst at BNP Paribas]

Hi, Dominik. Hi, Martin. Thank you for taking my questions. I have two, please. First quick one on tariff refund: can you maybe help us quantify the impact, in Q2, what you expect for the remainder of the year? I think you guys have only a marginal impact, but it would be helpful to have that number. Second, thanks for all the moving parts on 2026, but if we look forward to 2027, you guys have some tailwinds rolling off. U.S. draft reimbursement is 1%, and inflation keeps running slightly above that at 3%. Could you walk us through some of the building blocks for 2027, which would lead to EBIT growth next year, if that is the plan- or is EBIT growth off the table next year? Thank you.

[Helen Giza, Chair of Management Board and CEO at Fresenius Medical Care]

Martin, why don't you take the tariff question and I will head off with the tailwinds and headwinds discussions for 2027.

[Martin Fischer, CFO at Fresenius Medical Care]

As we had discussed, we had a limited tariff exposure in the past because of the breadth of our supply chain network and how we managed to mitigate it. As such, we also expect a limited refund. We have not received or booked anything in the second quarter. We expect a, let's say, high single-digit kind of range in the second half here. It is, as I said previously, on the headwind, rather limited.

[Helen Giza, Chair of Management Board and CEO at Fresenius Medical Care]

Yeah. Hugo, I think you can appreciate I am not going to get into the moving pieces of 2027 guidance in August of 2026. What I will speak to, though, is, you know, our usual building blocks, right? On the positive side, business performance and volume, the rates and yields, FME25+. Clear expectation there that we continue to expand our margins across the business, as well as getting the benefits from the HDF rollout. On the negative side, of course, we have the usual inflation and merit increases. I think the bigger moving bucket for 2027 is the binders and the TDAPA roll-off and that headwind into 2027. Obviously, we are not able to completely size that and won't do that today. Obviously, we've got to wait for what the final pricing does on the pharma pricing of what goes into the bundle.

[Helen Giza, Chair of Management Board and CEO at Fresenius Medical Care]

I think we've got our arms around what the moving parts of this business are by now. Of course, we'll size them accordingly by February.

[Hugo Solvet, Analyst at BNP Paribas]

Thank you.

[Dominik Heger, EVP and Head of Investor Relations, Strategic Development and Communications at Fresenius Medical Care]

Thank you. The next question comes from Richard from Goldman Sachs. Richard, the floor is yours.

[Richard Felton, Analyst at Goldman Sachs]

Thank you very much. Thanks for taking my question. I just want to follow up on the U.S. treatment growth, in particular, your comments about not capturing your fair share of referrals. What was actually, I guess in practice, what was happening to drive that? Have there been changes in your processes, your competitor processes? I just would like to understand more what the root cause of that is. Then as a follow-up to that, what is going to be top of Cassie's to-do list as she comes in to run that business and, I suppose, tries to steady the ship? Thank you.

[Helen Giza, Chair of Management Board and CEO at Fresenius Medical Care]

Thanks, Richard. Look, at the end of the day, we could see that we were getting patients referred, and we weren't getting them into the clinic. We track incoming referrals, and we also had confirmed referrals. When those referrals don't get confirmed, meaning a patient isn't in the chair, we know that they're going somewhere else. We clearly are expecting share loss, because those patients have gone somewhere, and we'll see how that plays out in the market this quarter, of course. What we are able to see is what those volumes and what those shares and treatment volumes look like by region. Clearly, where we were falling short there, we have now targeted what area we need to make those improvements. There is clear visibility on it. There have been leadership changes in that area as well.

[Helen Giza, Chair of Management Board and CEO at Fresenius Medical Care]

I think our whole organization knows that every aspect of inflows and outflows on same-market treatment growth are our number one priority. What I am encouraged by, Cassie's been with the organization three quarters or so now. She clearly, as we were looking through the noise of disruption. She quickly identified that we had a business development and kind of in our own control inflow issue, if you will. She's already working through those measures that need to be executed in. As I've mentioned, we're kind of putting the right leaders in and the right metrics to make sure that we're really focused on this particular root cause. We know it's a big operation. It's a complex operation. We've done a lot here, and I don't want to dismiss the work that has been done.

[Helen Giza, Chair of Management Board and CEO at Fresenius Medical Care]

I think the work that we are pulling through on outflows speaks to that. We're focused on it, and I think Cassie and I are very clearly aligned on the priorities and where we need to see improvement. We'll obviously track it accordingly, daily, weekly, and monthly.

[Richard Felton, Analyst at Goldman Sachs]

Thank you, Helen. I appreciate the color. If I could just squeeze in one follow-up. International Care Delivery was pretty robust, especially in organic terms. What was driving that? Are there any one-offs that we should be aware of? Thank you.

[Helen Giza, Chair of Management Board and CEO at Fresenius Medical Care]

Martin, do you want to take that?

[Martin Fischer, CFO at Fresenius Medical Care]

You saw that the same-market treatment growth was at 0.8%. We did see in the international organic revenue driver a supporting accounting topic, which had an effect there. When you look at that in the second quarter, we had certain pharmaceutical product business activities that we still had in Care Enablement, and in the second quarter, we shifted that too. It's neutral for the overall company. To give you a bit of a, let's say, framing here, this is something that had last year quarter to about EUR 20 million, roughly, in revenue and a low single-digit in profitability. That is what is supporting international organic revenue growth. We did that in order to also have full visibility of a global pharma P&L.

[Richard Felton, Analyst at Goldman Sachs]

Thanks very much.

[Dominik Heger, EVP and Head of Investor Relations, Strategic Development and Communications at Fresenius Medical Care]

Thank you. Next question comes from Anna from Bank of America. Anna, the floor is yours.

[Anna Ractliffe, Analyst at Bank of America]

Hi. Thank you so much for taking the question. I wanted to dig in a bit on the HVHDF rollout and how much, if at all, you saw disruption from the rollout of the clinics affecting U.S.A. market treatment growth in the quarter and what the learnings are from the rollout in the first half to take into the second half. Then I also wanted to, if possible, ask about external sales of HVHDF. I realize that's not a near-term priority. The priority for the year is the internal rollout, but I imagine those discussions are in place. Just how are they evolving, and how has that maybe changed after the [mother trial] data? Any incremental color there would be super helpful. Thank you.

[Helen Giza, Chair of Management Board and CEO at Fresenius Medical Care]

Yeah. Thanks, Anna. As you know, it's my favorite topic and one that we're thrilled with the progress on. As you can appreciate, something of this scale, we get a lot of learnings. What I would say is a lot of those learnings were really helpful through that pilot stage of last year. Once we got going, I think the teams have really stepped up. Don't forget, it's still a relatively small part of the overall clinic network that has been converted. It's not that it's a mass disruption to the 2,600 clinic network. It is obviously an impact to the couple of hundred that we have done so far. What we have seen is as we are gathering momentum, the speed and training and staff are just getting it.

[Helen Giza, Chair of Management Board and CEO at Fresenius Medical Care]

That's why I think you're seeing the acceleration and the kind of progress of the 10%, which is wonderful. I'd say we were clear that we wanted to track this patient cohort that was on HDF, and you saw Charles put out the BEACON-US press release last week, which we're thrilled with. I think it's too early at this stage to give real mortality or mistreatment data on that cohort. What we are able to see, and I referenced it earlier, is that the clinical benefits are tracking in line with the CONVINCE study. The fact that we've got the patients reaching the high volume relatively quickly, we know that that mortality benefit will ramp up over the coming years as well.

[Helen Giza, Chair of Management Board and CEO at Fresenius Medical Care]

We're thrilled with what we're seeing so far, as well as obviously not just the performance, but the patient feedback, the physician feedback, and obviously, the kind of patients reaching out to learn more and want to be referred to HDF clinic. As you rightly said, the external sales are minimal this year because of the allocation plan to our clinics. Obviously, we're making our machines available as we have excess capacity to other providers. That is something that is in pilot with some of those right now, and obviously, that's up to them on what they choose to do with purchasing the machines. Obviously, if that excess capacity that we've allocated doesn't get taken up in the short term, that would mean we would allocate more to our clinics and go faster.

[Helen Giza, Chair of Management Board and CEO at Fresenius Medical Care]

I think we're in good shape for where we are; I guess we're eight months, but two quarters in at least to the launch, and things are going incredibly well. I think the speed of the uptake on reaching the high volume levels is incredibly exciting. We're seeing that show up in the patient response.

[Anna Ractliffe, Analyst at Bank of America]

Great. Thank you very much.

[Helen Giza, Chair of Management Board and CEO at Fresenius Medical Care]

Of course.

[Dominik Heger, EVP and Head of Investor Relations, Strategic Development and Communications at Fresenius Medical Care]

Thank you. The next question comes from Graham from UBS. Graham, the floor is yours.

[Graham Doyle, Analyst at UBS]

Morning. Thanks for taking my questions. Just one quick one for Martin, and then a slightly longer one for Helen. Martin, just on the data, I've had a few people ask this specific total contribution for Q2. Is it fair to think of that as about EUR 120 million of EBIT in Q2 was from the full TDAPA, so catheters and phosphates? Helen, just secondly on the guidance for this year. The midpoint would imply something like a 12%, 13% decline in EBIT in H2. When I think of H2 2026, H1 2027 looks quite similar in terms of the TDAPA driver, in terms of the comparator there. That feels like not an uncensored way of thinking about H1 2027, and there's still a degree of headwind in H2 2027. Is it still reasonable to think of EBIT growth in 2027?

[Graham Doyle, Analyst at UBS]

I know you don't want to comment too much on it just seems like those headwinds are quite big.

[Helen Giza, Chair of Management Board and CEO at Fresenius Medical Care]

Martin, do you want to take the TDAPA one?

[Martin Fischer, CFO at Fresenius Medical Care]

Graham, what we did disclose is that this quarter in 2026, we had a year-over-year improvement of EUR 80 million. We also disclosed in quarter two 2025 that we had, against the prior year period before TDAPA, an improvement year-over-year of the lower end of a mid-double-digit impact. When you take these two together, you are roughly where you said you would be, and that constitutes kind of a 2x year-over-year improvement that we see. We think of it in a yearly slice normally, not as a total contribution. Does that make sense?

[Graham Doyle, Analyst at UBS]

That's super clear. Thank you.

[Martin Fischer, CFO at Fresenius Medical Care]

Good.

[Helen Giza, Chair of Management Board and CEO at Fresenius Medical Care]

Graham, on your second question, obviously, I don't want to get into the 2027 guidance, but I recognize everyone is already trying to put those building blocks together. Maybe what I would refer you to is the 2025 to 2028 CAGR aspiration that we put out there. Obviously, on 2026 we are confirming our guidance. We always said that there would be this shift between half one and half two that has completely developed in line with our expectations, which is why we are confirming. Of course, we've put out a 2025 to 2028, 3% growth CAGR aspiration. That is obviously still there. That used 2025 as a base that had the roughly EUR 300 million of TDAPA benefits in there. That's how we're thinking about it.

[Helen Giza, Chair of Management Board and CEO at Fresenius Medical Care]

Don't forget, on that 3%-7% CAGR growth assumption, we had also said there was underlying low-teens growth. Obviously, we are expecting the businesses to continue to contribute on their margin expansion here.

[Graham Doyle, Analyst at UBS]

Okay. Thank you very much.

[Dominik Heger, EVP and Head of Investor Relations, Strategic Development and Communications at Fresenius Medical Care]

Thank you. The next question comes from James from Jefferies. James, the floor is yours.

[James Vane-Tempest, Analyst at Jefferies]

Hi. Thanks very much for taking my questions. Two, if I can please. Firstly, you've completed 100 clinic closures this year. I was wondering if volumes stayed around the two key level into next year, would you need to consider other clinic closure programs to manage your fixed costs? How should we think about decisions to manage your clinic capacity? The second question is, this quarter, you've renamed the operating cash flow line changes in other working capital and non-cash items to changes in other assets and liabilities and other non-cash items. I was wondering why change the wording now, and was this purely presentational, or does it better reflect the fact that a broader set of operating assets and liabilities now contribute to operating cash flow than historically?

[James Vane-Tempest, Analyst at Jefferies]

It does seem as if cash flow improvements from this line in the first half were greater than the whole of the group. It'd be helpful to have some color on what's driven it if it's outside core operations, which otherwise would have decreased. Thank you.

[Helen Giza, Chair of Management Board and CEO at Fresenius Medical Care]

James, the clinic closure question sounds a lot easier than the second one. I'll take the first one. Martin can clearly give him a moment to look that up while I'm answering the clinic closures. This is the second round of clinic closures that we've done over the last couple of years. As we know, the deeper you go into that program on where they are operationally, the tougher they get in terms of the ROI on them. We feel really good about what we've done to date and this 100. We feel that we're well-placed with our outlook on what we expect to get on volume and obviously the benefits from HDF as they kick in.

[Helen Giza, Chair of Management Board and CEO at Fresenius Medical Care]

I've always said, while we're not planning for this not to kind of come back to growth, I've always said costs are not fixed indefinitely, and we would adjust capacity and overhead accordingly. I think we've been very diligent in how we've done that and appropriate with the outlook that we've got. Our expectation is still this underlying return to growth. Clearly, it's now taking a little longer, we're constantly looking at that overhead structure in line with that, and we'll adjust if needed in the future.

[James Vane-Tempest, Analyst at Jefferies]

Okay. Would it be fair to say if it was more like, say, -1.5 or something like that, would it kind of probably trigger that sort of discussion? I guess I'm sort of trying to understand the capacity that you have in terms of this manage and how much excess there is for you to do that. How much headroom do you have at the current run rate, maybe is a better way of asking the question.

[Helen Giza, Chair of Management Board and CEO at Fresenius Medical Care]

I feel that we are right-sized for what we expect to see through this medium-term period.

[James Vane-Tempest, Analyst at Jefferies]

Thank you.

[Helen Giza, Chair of Management Board and CEO at Fresenius Medical Care]

Okay.

[Martin Fischer, CFO at Fresenius Medical Care]

James, quick one from my side. There's no change in content, so to say, in the line. There's also no accounting changes that impact the line. It is only a better representation of the naming of the line.

[James Vane-Tempest, Analyst at Jefferies]

Thank you. That's understood. In terms of what's driven that then, just given the swing is more than the cash flow from the year generated from the overall group, are you able to give us a sense of what's gone into that cash flow improvement?

[Martin Fischer, CFO at Fresenius Medical Care]

Overall, our cash flow improvement was driven by the working capital development that we had, as Helen pointed out, where we did improve, so to say, based on the collection side as well as on the receivable side with a strong cash velocity. We also improved further, as we also lined out already in quarter one on the payable side. Those were the main drivers from the working capital.

[Dominik Heger, EVP and Head of Investor Relations, Strategic Development and Communications at Fresenius Medical Care]

That's it, Helen?

[James Vane-Tempest, Analyst at Jefferies]

Yeah. Thank you. I think it's just because of the wording. It now doesn't include working capital in that particular line. That's why I'm just trying to understand. I'm happy to follow up offline if that's easier. Given the magnitude, it would be helpful to understand.

[Martin Fischer, CFO at Fresenius Medical Care]

No content change, and the main drivers are the working capital.

[James Vane-Tempest, Analyst at Jefferies]

Good. Thank you.

[Dominik Heger, EVP and Head of Investor Relations, Strategic Development and Communications at Fresenius Medical Care]

Okay. Thank you. The next call comes from Falko from Deutsche Bank. Falko, the floor is yours.

[Falko Friedrichs, Analyst at Deutsche Bank]

Thank you. Good morning. My first question is on the Care Enablement business in China. Thanks for pointing out the headwind in Q2. I was wondering when you expect this situation to stabilize. Secondly, on the ACA topic, do you happen to have any early view on how we should think about this for 2027, and how much of an additional headwind it could potentially be next year on top of the EUR 50 million this year? Thank you.

[Helen Giza, Chair of Management Board and CEO at Fresenius Medical Care]

Yeah. Hi, Falko. Martin, why don't you take the China question? I'll come back on the ACA topic.

[Martin Fischer, CFO at Fresenius Medical Care]

Didn't get it. Okay.

[Helen Giza, Chair of Management Board and CEO at Fresenius Medical Care]

How are we doing?

[Martin Fischer, CFO at Fresenius Medical Care]

All right. Sorry for that. There was a bit of a gap. In China, we did see first-half expectations to be as we thought. We had EUR 20 million headwind in the quarter two. We had in the quarter one, half of the expected less than EUR 50 million. For the second half, we see that to be normalized, and we expect for the full year also this to remain below the EUR 50 million. I would say through the first half, we are through most of it, and with that, the EUR 50 million assumption for the full year is still intact.

[Helen Giza, Chair of Management Board and CEO at Fresenius Medical Care]

Yeah. Falko, on your ACA question, clearly, I'm not going to size what that is for 2027 because we don't really know. What we do know is the EUR 50 million that developed unfavorably this year was in line with expectations. As I also mentioned in my answer to my previous question on the same topic, we are also seeing shifts in contracts and where patients are going. I think ultimately what this will all wash up in is our business growth number. That will now be in the base. There's moving pieces here, so not all negative because of the positive moves in coverage with different insurers. It's just going to be impossible to track separately moving forward.

[Helen Giza, Chair of Management Board and CEO at Fresenius Medical Care]

When we give a business growth number for 2027, once we roll up these entire books of business and how it all settles out, we'll be able to pop it in there so that It's impossible to track where these patients ultimately will end up in 2027 between the different plans. We'll do the bottom-up book of business build that goes into that business growth number.

[Falko Friedrichs, Analyst at Deutsche Bank]

Okay. Thank you.

[Helen Giza, Chair of Management Board and CEO at Fresenius Medical Care]

Okay.

[Dominik Heger, EVP and Head of Investor Relations, Strategic Development and Communications at Fresenius Medical Care]

Super. Thank you. Those were all questions we received. There's no one waiting to ask a question. With that, I'll thank Helen and Martin for answering the questions and for all the interesting questions. With that, we'll close the call and wish everyone a great summer.

[Helen Giza, Chair of Management Board and CEO at Fresenius Medical Care]

Thanks, everybody. Appreciate the flexibility today on the earlier timing as well. Have a good summer, and we'll see many of you on the road soon. Thank you.

[Martin Fischer, CFO at Fresenius Medical Care]

Thank you.

[Operator]

Ladies and gentlemen, the conference is now over. Thank you for choosing Chorus Call and thank you for participating in the conference. You may now disconnect your lines. Goodbye.

Participants

Analysts

• Dominik Heger, EVP and Head of Investor Relations, Strategic Development and Communications at Fresenius Medical Care
• Helen Giza, Chair of Management Board and CEO at Fresenius Medical Care
• Martin Fischer, CFO at Fresenius Medical Care
• Analyst at Barclays
• Veronika Dubajova, Analyst at Citi
• Oliver Metzger, Analyst at ODDO BHF
• Aisyah Noor, Analyst at Morgan Stanley
• Hugo Solvet, Analyst at BNP Paribas
• Richard Felton, Analyst at Goldman Sachs
• Anna Ractliffe, Analyst at Bank of America
• Graham Doyle, Analyst at UBS
• James Vane-Tempest, Analyst at Jefferies
• Falko Friedrichs, Analyst at Deutsche Bank