By Tristan Veyet

(Reuters) -German healthcare group Fresenius beat analysts' operating profit expectations on Wednesday, driven by a strong performance at its drug making division Kabi in the first quarter of 2025.

The company's earnings before interest and taxes (EBIT) excluding special items rose to 654 million euros ($742 million) in the quarter, compared to analysts' average estimate of 634 million euros in a poll compiled by Vara Research.

Fresenius' earnings statement echoes that of its former dialysis unit Fresenius Medical Care (FMC), which on Tuesday reported organic revenue growth across all its segments and confirmed its guidance for 2025.

The diversified healthcare group, which previously held 32.2% of FMC's shares, cut its stake to 25% plus one share in March.

Fresenius also confirmed its outlook for 2025, targeting organic revenue growth of 4% to 6% and constant currency EBIT growth of 3% to 7% for the whole group.

"With a strengthened balance sheet and capital allocation priorities to further invest in our growth platforms, while also increasing our US presence, Fresenius is well positioned to deliver future profitable growth and innovation," CEO Michael Sen said in a statement.

Fresenius joins a growing list of non-U.S. companies that are eyeing expansion in the United States in the wake of President Donald Trump's tariffs.

Following Trump's "Liberation Day" tariff announcement on April 2, Fresenius said it produced 70% of the medicines it sells in the U.S. locally.

Since taking the helm in October 2022, Sen has been revamping the organization to reduce expenditures and liabilities following a sharp drop in profits at FMC, which it has since carved out of the reporting structure.

This restructuring initiative has put Fresenius Kabi, a producer of generic hospital medications, and Helios, which operates a network of hospitals in Germany and Spain, to the forefront of Fresenius' strategy.

($1 = 0.8813 euros)

(Reporting by Tristan Veyet in Gdansk, additional reporting by Isabel Demetz, editing by Milla Nissi-Prussak)