Drägerwerk (DRW3) Q2 2026 earnings summary

Executive summary

• Net sales rose sharply by 7.7% to €1,603 million in H1 2026, with strong growth in both medical and safety divisions and particularly robust performance in the Americas, EMEA, and Germany.

• EBIT more than tripled to €63.8 million, with margin up to 4.0%, driven by higher sales, improved gross margin, and a one-off customs refund.

• Free cash flow turned positive at €15.5 million, reflecting operational strength and improved profitability.

• Order intake increased slightly to €1,747 million, with medical segment impacted by a prior-year major order and safety segment showing strong demand.

• Earnings benefited from strong operating momentum and a one-off U.S. customs refund.

Financial highlights

• Net sales increased by 7.7% in H1 2026 to €1,603 million; gross margin improved by 1.7 percentage points to 46.5%.

• EBIT rose from €20 million to €63.8 million in H1, with margin up from 1.3% to 4.0%.

• Free cash flow improved to €15.5 million from -€42 million year-over-year.

• ROCE increased to 15.7% (from 9.9% in H1 2025).

• Earnings after income taxes reached €40.2 million, up from €9.5 million year-over-year.

Outlook and guidance

• Net sales growth for 2026 expected at 2.0–6.0% (currency-adjusted); EBIT margin guidance raised to 6.0–8.0% due to strong operations and customs refunds.

• DVA guidance increased to €60–140 million; days working capital target lowered to 100–105 days.

• Targeting EBIT margin improvement of one percentage point per year to reach 10% by 2030.

• Guidance raised due to strong operating business and customs refunds.

• Further customs refunds of €7–9 million are possible but not guaranteed.