Q2 2025 Draegerwerk AG & Co KGaA Earnings Call Transcript
Key Points
- Draegerwerk AG & Co KGaA (XTER:DRW3) achieved stable net sales and a positive operating result in the first half of 2025, with net sales adjusted for currency effects showing a slight increase.
- Order intake increased significantly to around EUR1.7 billion, marking the highest order intake in the first half since 2020, providing a strong foundation for future growth.
- The company improved its operating cash flow, moving into positive territory at around EUR18 million, compared to a negative EUR5 million in the prior-year period.
- The price of Draegerwerk's common shares rose by more than a third, and preferred shares increased by over 40% in the first half of the year, with preferred shares being included in the TecDAX.
- The company is consolidating its neonatal care operations into one site in Lubeck, Germany, which is expected to improve efficiency, reduce fixed costs, and enhance platform development.
- Earnings before interest and taxes (EBIT) fell short of the prior-year figure, primarily due to the absence of positive one-off effects from the previous year.
- Currency effects and custom duties negatively impacted earnings, with a reported FX impact of roughly EUR20 million.
- The Safety division experienced a decline in net sales by 1.4% in the first half, with a notable drop in the Americas and EMEA regions.
- The Medical division's EBIT margin decreased from minus 2.9% to minus 4% in the first half, with a significant decline in profitability compared to the prior year.
- The company faces a substantial tariff headwind, with an expected impact of around EUR25 million for the full year, posing challenges to maintaining profitability.
Ladies and gentlemen, welcome to the Q2 2025 earnings call. I am George, the Chorus Call operator. (Operator Instructions)
At this time, it's my pleasure to hand over to Stefan Draeger, CEO. Please go ahead.
Yes. Good afternoon, and thank you for joining our conference call on our financial results for the first half of 2025. And thank you all for your flexibility for rescheduling the call for one hour due to organizational reasons. Thank you for being with us. I have with me today Gert-Hartwig Lescow, CFO; as well as Tom Fischler and Nikolaus Hammerschmidt, both Investor Relations.
We would like to take you through the results with the presentation that we made available on our web page this morning. Following the presentation, we will open the floor to your questions. So let's get started on page 5 with the business highlights. With stable net results -- stable net sales and a positive operating results, we achieved a solid business performance in the first half
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