Drägerwerk (DRW3) Q1 2026 earnings summary

Executive summary

• Net sales grew to €755.9 million, up 6.9% year-over-year (fx-adjusted), with strong demand and order intake, especially in Germany and the Americas.

• EBIT rose sharply to €17.9 million from €0.4 million, with EBIT margin at 2.4%, reflecting improved profitability and operational performance.

• Free cash flow increased to €44.1 million, up €12.1 million year-over-year, driven by strong earnings and effective working capital management.

• Profitability improved significantly, with optimism for the remainder of the year based on Q1 performance.

• A higher dividend is proposed for shareholders, marking the third consecutive annual increase.

Financial highlights

• Gross margin improved by 0.5 percentage points to 46.3%, supported by the medical division.

• Operating cash flow reached €62.0 million, up 10.9% year-over-year; investments increased to €32.7 million (+13.3%).

• Net financial debt reduced by €56.3 million to €85.5 million; net debt/EBITDA ratio improved to 0.2.

• ROCE improved to 15.2% from 11.5% year-over-year.

• Earnings after income taxes reached €11.3 million, up from a loss of €1.9 million.

Outlook and guidance

• FY 2026 guidance confirmed: net sales growth expected between 2.0% and 6.0% (fx-adjusted), EBIT margin forecasted at 5.0% to 7.5%.

• DVA forecasted between €20–120 million; gross margin 44.0–46.0%.

• No material impact anticipated from U.S. tariffs or the war against Iran.

• R&D costs projected at €335–355 million; net financial debt €140–170 million.