Drägerwerk (DRW3) Q2 2025 earnings summary

Executive summary

• Net sales for H1 2025 were €1,510.2 million, stable year-over-year with a 0.4% fx-adjusted increase and a stable gross margin at 44.8%.

• EBIT declined to €20.4 million from €55.8 million, mainly due to the absence of prior-year one-off gains and negative currency/customs effects.

• Order intake reached €1,738 million, the highest since H1 2020, with strong growth in both divisions and all regions, including a major order from Mexico.

• Operating cash flow improved to €17.8 million from a negative €5.5 million in the prior year.

• Share prices surged, with preferred shares up 44.5% and inclusion in the TecDAX index.

Financial highlights

• Net sales increased 0.4% year-over-year to €1,510 million; Q2 net sales up 1.8%.

• EBIT for H1 was €20.4 million (1.3% margin), down from €55.8 million (3.7% margin) last year.

• Gross margin remained stable at 44.8% despite tariff and FX headwinds.

• Operating cash flow improved to €17.8 million; free cash flow was -€42 million due to higher investing activities.

• Net financial debt at €269.1 million; leverage at 0.9x net financial debt to EBITDA; equity ratio at 49.1%.

Outlook and guidance

• Full-year 2025 guidance confirmed: net sales growth (fx-adj.) of 1%-5% and EBIT margin of 3.5%-6.5%.

• DVA expected between -€30 million and +€80 million.

• Management expects stronger H2 sales due to robust order backlog and typical seasonality.

• Margin guidance and outlook include anticipated headwinds from tariffs and currency effects.

• R&D expenses projected at €330–350 million; investment volume at €180–210 million.