Drägerwerk (DRW3) investor relations material

Executive summary

• Achieved record net sales of approximately €3,482 million in 2025, surpassing previous highs, with growth in both Medical and Safety divisions and all regions.

• EBIT rose by 20.3% to around €233.4 million, with EBIT margin up to 6.7%, exceeding forecasts despite negative tariff and currency effects.

• Order intake increased to €3,569 million, with strong momentum in Americas and EMEA.

• Free cash flow and dividends increased for the third consecutive year since 2022.

• Preferred shares returned to the TecDAX, and share prices surged, reflecting increased investor confidence.

Financial highlights

• Net sales up 5.3% year-over-year to €3,481.9 million; Q4 net sales rose 8.7%.

• Gross margin improved to 45.2% from 44.9% in 2024.

• EBIT margin increased from 5.8% to 6.7%; Q4 EBIT margin reached 13.7%.

• Free cash flow improved to €140.2 million; cash conversion rate at 100%.

• Earnings per share improved to €7.40 (common) and €7.50 (preferred); other reports state €6.67 (common) and €6.73 (preferred).

Outlook and guidance

• 2026 net sales expected to grow 2%-6% (currency-adjusted), with EBIT margin forecast between 5%-7.5%.

• Both divisions expected to contribute positively; continued focus on price increases to offset tariffs.

• Customs duties expected to remain at 2025 levels; Medical division to bear higher burden.

• Ongoing commitment to increase EBIT margin by one percentage point per year.

• Dräger Value Added (DVA) expected between €20 million and €120 million.