Shares of Draegerwerk (ETR:DRWG_p) AG (ETR:DRW3) fell by 1.1% as the market reacted to the company’s latest financial results. Despite reporting a preliminary increase in order intake by 6.1% net of currency effects to approximately €861 million, surpassing the first quarter of the previous year, Draegerwerk experienced a slight decline in net sales and a significant drop in earnings before interest and taxes (EBIT).
In the first quarter, traditionally a weaker season for the company, Draegerwerk saw a decrease in net sales of 1.2%, with sales totaling roughly €730 million compared to €736 million in the same period last year. Although the gross margin showed improvement, increasing to about 45.8% from 45.3% in the first quarter of 2024, the EBIT margin painted a different picture.
The EBIT stood at roughly €0.4 million, a stark contrast to the €15 million reported in the first quarter of the previous year, resulting in an EBIT margin of only 0.1%, down from 2.0% year-on-year.
Looking ahead to the full fiscal year 2025, Draegerwerk maintains its forecast, expecting an increase in net sales of 1.0-5.0% net of currency effects and aiming for an EBIT margin between 3.5% and 6.5%. The current consensus estimates a 3.9% growth in sales and an EBIT margin of 5.2% for the fiscal year 2025.
However, the company has indicated that the potential impact of U.S. tariff policies on its business development remains unpredictable and has not been factored into their forecast.
