Q4 2025 Draegerwerk AG & Co KGaA Earnings Call Transcript
Key Points
- Draegerwerk AG & Co KGaA (DGWPF) achieved the highest net sales in its history, reaching around EUR3.5 billion, surpassing the previous record set during the pandemic year of 2020.
- EBIT rose by more than 20% to approximately EUR233 million, with the EBIT margin increasing by roughly 1 percentage point to 6.7%, indicating improved profitability.
- Order intake showed strong growth, with both divisions contributing, highlighting continued demand for the company's technology.
- The company's shares performed well on the stock market, with common shares rising by more than a third and preferred shares increasing by almost half.
- The defense business grew significantly, with plans to triple defense sales to more than EUR300 million by 2028, indicating strong future growth potential in this sector.
- The company faced strong headwinds from tariffs and currency effects, negatively impacting EBIT by approximately EUR45 million.
- Functional expenses rose by 4.6% in 2025, driven by higher personnel expenses due to wage increases and a higher number of employees.
- The Medical Division's gross margin decreased by 0.6 percentage points in Q4 due to higher inventory write-outs.
- The company expects net financial debt to increase in the current year due to investments in a large distribution center and higher lease liabilities.
- Currency headwinds are expected to continue, potentially impacting the EBIT margin by 30 to 60 basis points in 2026.
Ladies and gentlemen, welcome to the DregaWerk Full Year 2025 Earnings Call. I'm Moritz, your Korn's call operator. I would like to remind you that all participants will be in a listen-only mode and the conference is being recorded. The presentation will be followed by a question-and-answer session. You can register for questions at any time by pressing star and one on your telephone. For operator assistance, please press star and zero. The conference must not be recorded for publication or broadcast. At this time, it's my pleasure to hand over to Stefan Traeger, CEO. Please go ahead, sir.
Well, good afternoon, and thank you for joining our conference call on our financial results for the fiscal year 2025.
I have with me today, Gerthard Gespo, CFO.
As well as Tom Fischler and Nicolas 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.
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