Drägerwerk (DRW3) German Select VII Conference summary

Key milestones and company overview

• Operates two main divisions: Medical (60% of sales) and Safety (40%), with a global footprint and strong presence in Germany, Europe, and the Americas.

• Majority of employees are customer-facing, with significant investments in production and R&D facilities worldwide, including new expansion in India for local market needs.

• Medical division focuses on high-acuity hospital areas, with anesthesia and ventilation as core products, and a growing aftersales business contributing over 40% of unit sales.

• Safety division serves diverse industries, with firefighters, oil & gas, chemicals, and mining as major verticals, and a growing defense segment targeting EUR 300 million sales by 2028.

• Sustainability recognized with improved EcoVadis CSR score and strong ESG ratings from multiple agencies.

Innovation and product strategy

• Investing in interoperability and open ecosystems, exemplified by the Silent ICU, which integrates devices from multiple suppliers for improved workflow and patient outcomes.

• Patient Monitoring is a strategic focus for future innovation, enabling device interoperability and supporting the core business.

• Open ecosystem approach in Medical software is winning tenders, offering customers flexibility and investment safety compared to proprietary systems.

• Gas detection solutions in Safety are differentiated by advanced sensor technology and reliability, minimizing false alarms and supporting process quality.

• Focus on innovation leadership through investment in product and commercial innovation, and local value creation.

Financial performance and outlook

• Achieved record net sales of €3.48 billion in 2025, with 5% currency-adjusted growth and an EBIT margin of 6.7%, despite EUR 70 million in headwinds from currency and tariffs.

• Free cash flow increased to €140.2 million, supporting a dividend increase for the third consecutive year and maintaining an equity ratio above 50%.

• EBIT margin improved to 6.7% in 2025, up from 5.8% in 2024, driven by strong order intake and improved gross margin.

• Outlook for 2026 targets 2.0–6.0% currency-adjusted sales growth and EBIT margin of 5.0–7.5%, with continued focus on margin expansion and positive DVA.

• R&D costs projected at €140–170 million for 2026, with gross margin expected between 44.0–46.0%.