Drägerwerk (DRW3) Q4 2024 earnings summary

Executive summary

• Profitability improved in 2024, with EBIT up 17% to EUR 194 million, supported by operating improvements and one-off effects totaling around EUR 22 million.

• Net sales remained stable at EUR 3.4 billion (+0.5% currency-adjusted), matching the prior year despite a sharp decline in China sales.

• Free cash flow increased to EUR 124 million, slightly above the prior year.

• Order intake exceeded the high level of the prior year, reflecting sustained demand for core technologies, with declines in China offset by growth elsewhere.

• Dividend payout set at 30% of net profit, with higher dividends per share proposed for 2024.

Financial highlights

• Net sales stable year-over-year at EUR 3.4 billion; currency-adjusted sales grew 0.5%.

• EBIT rose 17% to EUR 194 million, with EBIT margin up from 4.9% to 5.8%.

• Gross profit margin increased by 1.6 percentage points to 44.9%.

• Net financial debt improved to EUR 165 million, with leverage at 0.5.

• Equity ratio at 49.7%, up 4.1 percentage points.

Outlook and guidance

• For 2025, currency-adjusted net sales are expected to grow 1%-5%, with an EBIT margin between 3.5%-6.5%.

• Both divisions are expected to contribute to sales growth and positive EBIT.

• Stabilization and slight growth anticipated in China, but not a return to 2023 volumes.

• Ongoing commitment to increase EBIT margin by 1 percentage point per year on average.