This article first appeared on GuruFocus .
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Net Sales:EUR3.5 billion, highest in company history, slightly above forecast.
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EBIT:Increased by over 20% to approximately EUR233 million.
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EBIT Margin:Improved by 1 percentage point to 6.7%.
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Order Intake:Increased by 7.7% to around EUR3.6 billion.
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Gross Margin:Rose by over 3 percentage points to 45.2% for the full year.
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Functional Expenses:Rose by 4.6% in 2025.
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Free Cash Flow:Improved to around EUR140 million.
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Net Financial Debt:Decreased by around 25% to EUR123 million.
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Equity Ratio:Increased to around 52% as of December 31.
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Earnings Per Share (EPS):Improved to more than EUR7.40 per common share.
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Dividend Proposal:EUR2.21 per common share and EUR2.27 per preferred share.
Release Date: March 24, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Draegerwerk AG & Co KGaA ( DGWPF ) achieved the highest net sales in its history, reaching around EUR3.5 billion, surpassing the previous record set during the pandemic year of 2020.
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EBIT rose by more than 20% to approximately EUR233 million, with the EBIT margin increasing by roughly 1 percentage point to 6.7%, indicating improved profitability.
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Order intake showed strong growth, with both divisions contributing, highlighting continued demand for the company's technology.
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The company's shares performed well on the stock market, with common shares rising by more than a third and preferred shares increasing by almost half.
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The defense business grew significantly, with plans to triple defense sales to more than EUR300 million by 2028, indicating strong future growth potential in this sector.
Negative Points
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The company faced strong headwinds from tariffs and currency effects, negatively impacting EBIT by approximately EUR45 million.
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Functional expenses rose by 4.6% in 2025, driven by higher personnel expenses due to wage increases and a higher number of employees.
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The Medical Division's gross margin decreased by 0.6 percentage points in Q4 due to higher inventory write-outs.
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The company expects net financial debt to increase in the current year due to investments in a large distribution center and higher lease liabilities.
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Currency headwinds are expected to continue, potentially impacting the EBIT margin by 30 to 60 basis points in 2026.
Q & A Highlights
Q: Can you confirm if the Middle East situation will impact your supply chains and inflation? Also, what's the update on the ventilation market with recent changes? A: We do not foresee any significant impact from the Middle East conflict on our supply chains or inflation. Regarding the ventilation market, while some major players have exited, we do not see a significant threat from new entrants like Mindray in the U.S. Our focus remains on developed markets, and we continue to see growth opportunities.
Q: What are your targets for increasing recurring business as part of your corporate objectives? A: We aim to further develop our business models from transaction-based to recurring services. Last year, we crossed the $1 billion threshold in services, with some European countries already seeing more sales in services than devices. This shift helps us better understand customer needs and defend our business.
Q: How has the defense business developed in 2026, and what is the impact of tariffs on your operations? A: Our defense business is growing, with plans to triple sales to $300 million by 2028. Regarding tariffs, we have filed for reimbursement of tariffs deemed illegal by courts, but the outcome is uncertain. We expect tariffs to remain at similar levels as last year.
Q: Can you provide an update on capital spending and whether the surge in 2025 will continue? A: The increase in 2025 was partly due to a supplier loan accounted as an investment. We do not expect similar levels in 2026. However, we anticipate an increase in investment volume due to a long-term rental agreement, which will be spread over the rental period.
Q: What is the current situation in China, and how are you starting the year 2026? A: China remains stable but at a lower level than before. We started 2026 with a strong order backlog and are on track with our sales and order intake expectations. Currency headwinds continue, but we are managing them within our forecasts.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
