Drägerwerk (DRW3) Q1 2025 earnings summary

Executive summary

• Q1 2025 achieved the highest order intake since 2020 at EUR 860.8 million, with net sales nearly flat year-over-year and the safety division outperforming the medical division.

• EBIT was slightly positive at EUR 0.4 million, down from EUR 15.1 million last year, and net profit was negative at EUR -1.9 million.

• Gross margin improved to 45.8%, mainly driven by the safety division.

• Operating cash flow rose significantly to EUR 55.9 million, and annual guidance for 2025 was confirmed.

Financial highlights

• Order intake grew over 6% year-over-year, with strong growth in EMEA, Americas, and APAC.

• Net sales were EUR 730.3 million, down 1.2% fx-adjusted and 0.8% nominal year-over-year.

• Gross profit margin increased to 45.8%, supported by the safety division.

• Functional expenses rose 4.7%-5.0%, mainly due to a one-off personnel payment in Germany.

• Operating cash flow rose to EUR 55.9 million, and pre-cash flow doubled to EUR 32 million.

• Net financial debt reduced to EUR 141.8 million, with net financial debt/EBITDA improved to 0.4.

• Return on capital employed increased to 12%.

• Equity ratio stable at nearly 50%.

Outlook and guidance

• Net sales growth forecasted at 1%-5% for 2025, with EBIT margin expected between 3.5%-6.5%.

• Dräger Value Added (DVA) projected between -EUR 30 million and +EUR 80 million.

• Gross margin guidance: 44.0–46.0%; R&D expenses: EUR 330–350 million; investment volume: EUR 110–130 million.

• Potential impacts from U.S. customs policy and exchange rates are not included in the forecast.

• Dividend for 2024 set at EUR 1.97 per common share and EUR 2.03 per preferred share, with a commitment to distribute at least 30% of net profits.