Q3 2025 Draegerwerk AG & Co KGaA Earnings Call Transcript
Key Points
- Draegerwerk AG & Co KGaA (DGWPF) reported a significant increase in orders, reaching around EUR2.6 billion, marking a strong business performance in the first nine months of 2025.
- Net sales increased to approximately EUR2.3 billion, driven by growth in both divisions and all regions.
- Operating cash flow improved significantly by more than EUR35 million to around EUR93 million, reflecting effective working capital management.
- The company's preferred shares increased by around 63% year to date, indicating strong investor confidence.
- The EBIT margin rose to 6.8% in Q3, more than doubling from the prior year quarter, showcasing strong earnings performance.
- Currency headwinds and higher tariffs had a substantial negative impact on earnings, with FX alone negatively impacting EBIT by roughly EUR22 million.
- Despite the overall positive performance, the business in China showed uneven development, with demand cooling considerably in the third quarter.
- Functional expenses rose by 6% in the first nine months, driven by the absence of last year's EUR30 million one-off income.
- The Safety division's EBIT decreased slightly over the first nine months, with the EBIT margin just below 10%, down from the previous year.
- The company faces potential risks from FX fluctuations and supply chain issues, which could impact future margins and growth.
Yes, good afternoon, and thank you for joining our conference call on our financial results for the first 9 months of 2025. I have with me today Gert-Hartwig Lescow, CFO; as well as Tom Fischler and Nikolaus Hammerschmidt, both Investor Relations.
I would like to take you through the results of the presentation that we made available on our webpage this morning. Following the presentation, we will open the floor to your questions.
Let's get started on page 5 with the business highlights. With a significant increase in orders, noticeable growth in sales, and very good earnings, we delivered a strong business performance in the first nine months of 2025.
Despite difficult economic conditions, demand for our Technology for Life rose to around EUR2.6 billion. The last time we had such a high order intake after 3 quarters was in our record year 2020. Growth was driven by both divisions and all. The same is true for net sales, which increased to around EUR2.3 billion.
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