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1. Company Snapshot

1.a. Company Description

Drägerwerk AG & Co. KGaA operates as a medical and safety technology company in Europe, the Americas, Africa, Asia, and Australia.The company develops, produces, and markets system solutions, equipment, and services for acute point of care, including emergency care, perioperative care, critical care, and perinatal care.It also develops, produces, and markets products, system solutions, and services for personal protection, gas detection technology, and integrated hazard management to customers in industry and mining sectors, as well as public sectors, such as fire departments, police, and disaster protection.


The company's products portfolio includes anesthesia devices and ventilators, thermoregulation equipment, consumables and accessories, supply units, lights, gas management systems, patient monitoring, software applications, system products, and other services.Its product portfolio also comprises stationary and mobile gas detection systems, personal protective equipment, and alcohol and drug testing devices.In addition, the company offers various training and services, as well as fire training facilities for firefighters.


Drägerwerk AG & Co. KGaA was founded in 1889 and is headquartered in Lübeck, Germany.

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1.b. Last Insights on DRW3

Recent positive drivers behind Drägerwerk AG & Co. KGaA's performance include: * Receipt of Innovative Technology Designation for Atlan A350/A350XL Anesthesia Machines from Vizient, expanding its presence in the anesthesia equipment market. * Obtaining Authority to Operate (ATO) certification for Evita V800/V600 and Babylog VN800 mechanical ventilators, as well as Savina 300 series, under the Department of Defense's Risk Management Framework, enhancing its credibility in the government sector. * Launch of ProAir, a next-generation closed-circuit breathing apparatus, providing a continuous oxygen supply for up to four hours and revolutionizing respiratory protection for government operations in hazardous environments. These developments highlight Dräger's commitment to innovation and its expanding presence in critical markets, including anesthesia equipment and government operations.

1.c. Company Highlights

2. Drägerwerk Hits Record Sales, Eyes Margin Upside

Drägerwerk reported full‑year 2025 net sales of EUR 3.5 billion, a new high that eclipses the 2020 pandemic peak by EUR 25 million and slightly tops the guidance. EBIT rose over 20% to EUR 233 million, giving a margin of 6.7%—above the forecast. EPS matched estimates at 4.99, reflecting disciplined cost control amid tariff and currency headwinds.

Publication Date: Apr -27

📋 Highlights
  • Record Net Sales:: EUR 3.5 billion, driven by 2025's performance and exceeding 2020's pandemic-driven results by EUR 25 million.
  • EBIT Surge:: 20% increase to EUR 233 million, with a 6.7% margin surpassing forecasts despite EUR 26 million in tariffs and EUR 45 million in currency effects.
  • Order Intake Growth:: 7.7% rise to EUR 3.6 billion, with Medical division orders up 9% and Safety division orders up 6%.
  • Cash Flow Strength:: Operating cash flow improved EUR 71 million to EUR 238 million, and free cash flow reached EUR 140 million.
  • 2026 Guidance:: Net sales growth of 2%–6% and EBIT margin target of 5%–7.5%, with a goal to achieve an EBIT margin equal to the last digit of the year (5% for 2025).

Financial Highlights

The company’s cash flow from operations jumped to EUR 238 million, up EUR 71 million year‑on‑year, while free cash flow reached EUR 140 million. The equity ratio settled at 52%, underscoring a solid balance sheet. With a P/E of 12.28 and ROIC of 6.03%, the stock trades near a modest valuation relative to peers.

Order Intake & Divisional Performance

Order intake climbed 7.7% to EUR 3.6 billion. Medical orders grew 9%, driven by anesthesia machines and ventilator services; Safety orders rose 6%, buoyed by gas‑detection and respiratory protection. Net sales up 7.4% in Medical and 2.6% in Safety, indicating balanced demand across the portfolio.

Currency & Tariff Impact

Dräger absorbed EUR 26 million in tariffs and EUR 45 million in currency losses, yet operating momentum offset these costs. The company filed for tariff reimbursement and expects a similar burden next year. A 1‑percentage‑point currency headwind on sales and 30‑60 basis‑point drag on EBIT is projected.

Outlook & Strategic Moves

Management targets 2026 net sales growth of 2‑6% with EBIT margins of 5‑7.5%. The firm plans to raise prices to counter U.S. import tariffs, while long‑term rental agreements will push capex to EUR 130 million. Services sales already outpace device sales in Germany, a trend the company seeks to expand regionally.

Valuation Snapshot

With a dividend yield of 2.22% and free‑cash‑flow yield of 9.57%, Dräger offers attractive income. The EV/EBITDA of 4.97 and P/B of 1.05 suggest modest upside, especially as the company’s dividend is set at EUR 2.21 per common share. The narrative of margin improvement and recurring service revenue positions Dräger for a bullish trajectory.

3. NewsRoom

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Drägerwerk AG & Co. KGaA Q1 Earnings Call Highlights

Apr -30

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Draegerwerk AG & Co KGaA (DGWPF) Q4 2025 Earnings Call Highlights: Record Sales and ...

Mar -24

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A Look At Drägerwerk KGaA (XTRA:DRW3) Valuation After Strong Recent Share Price Momentum

Feb -15

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Dräger Partners with MES Life Safety to Expand AirBoss Access Nationwide

Feb -10

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Dräger PSS® AirBoss SCBA Now Available for Purchase in North America

Feb -05

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Gas Detection Market Forecast to Reach USD 5.18 Billion by 2030: Market Insights and Growth Drivers

Dec -17

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Dräger achieves perfect-score CMMC Level 2 Certification reinforcing cybersecurity leadership in Defense and Government healthcare and safety technology

Oct -29

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Societe Generale: shares & voting rights as of 31 August 2025

Sep -09

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.17%)

6. Segments

Medical

Expected Growth: 5%

Drägerwerk's Medical segment growth is driven by increasing demand for ventilation and anesthesia solutions, expansion in emerging markets, and strategic acquisitions. The company's focus on innovation, particularly in digital healthcare and patient monitoring, also contributes to growth. Additionally, the rising need for critical care equipment and services, especially during the pandemic, has boosted sales.

Safety

Expected Growth: 3%

Drägerwerk's Safety segment growth is driven by increasing demand for gas detection and respiratory protection products, particularly in the oil and gas, chemical, and mining industries. Additionally, the company's focus on innovation, expansion into emerging markets, and strategic acquisitions contribute to its growth.

7. Detailed Products

Anesthesia Workstations

Dräger's anesthesia workstations provide advanced ventilation, anesthesia delivery, and patient monitoring capabilities for surgical and critical care settings.

Patient Monitoring Systems

Dräger's patient monitoring systems provide real-time vital sign monitoring, data analysis, and alarm management for patient care.

Ventilation Systems

Dräger's ventilation systems provide advanced respiratory care, including invasive and non-invasive ventilation, for patients in critical care settings.

Perioperative Care Solutions

Dräger's perioperative care solutions provide integrated systems for anesthesia, ventilation, and patient monitoring in surgical settings.

Gas Detection and Analysis

Dräger's gas detection and analysis solutions provide portable and fixed gas detection systems for industrial, oil and gas, and emergency response applications.

Dive Computers and Underwater Communication

Dräger's dive computers and underwater communication systems provide advanced safety and communication solutions for professional and recreational divers.

Fire and Emergency Services Equipment

Dräger's fire and emergency services equipment provides respiratory protection, gas detection, and communication solutions for firefighters and emergency responders.

8. Drägerwerk AG & Co. KGaA's Porter Forces

Forces Ranking

Threat Of Substitutes

Drägerwerk AG & Co. KGaA operates in the medical technology industry, where substitutes are limited. However, the company faces competition from alternative medical devices and technologies.

Bargaining Power Of Customers

Drägerwerk AG & Co. KGaA's customers are primarily hospitals and healthcare providers, who have limited bargaining power due to the company's strong brand reputation and high-quality products.

Bargaining Power Of Suppliers

Drägerwerk AG & Co. KGaA relies on a diverse supplier base, which reduces the bargaining power of individual suppliers. However, the company may face challenges in sourcing high-quality components and materials.

Threat Of New Entrants

The medical technology industry has high barriers to entry, including regulatory hurdles and significant R&D investments. This limits the threat of new entrants and provides Drägerwerk AG & Co. KGaA with a competitive advantage.

Intensity Of Rivalry

The medical technology industry is highly competitive, with several established players competing for market share. Drägerwerk AG & Co. KGaA faces intense competition from companies such as Medtronic, Philips, and GE Healthcare.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 21.68%
Debt Cost 3.95%
Equity Weight 78.32%
Equity Cost 3.09%
WACC 3.28%
Leverage 27.69%

11. Quality Control: Drägerwerk AG & Co. KGaA passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Synektik

A-Score: 6.3/10

Value: 2.5

Growth: 9.9

Quality: 8.0

Yield: 5.0

Momentum: 8.5

Volatility: 4.0

1-Year Total Return ->

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Stock-Card
Drägerwerk

A-Score: 6.0/10

Value: 8.5

Growth: 3.3

Quality: 5.4

Yield: 3.8

Momentum: 9.5

Volatility: 5.3

1-Year Total Return ->

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Stock-Card
EL.En

A-Score: 5.3/10

Value: 4.4

Growth: 6.1

Quality: 7.9

Yield: 5.6

Momentum: 3.5

Volatility: 4.0

1-Year Total Return ->

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Stock-Card
ChemoMetec

A-Score: 4.6/10

Value: 0.0

Growth: 7.8

Quality: 9.2

Yield: 0.6

Momentum: 8.5

Volatility: 1.7

1-Year Total Return ->

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Stock-Card
Eckert & Ziegler

A-Score: 4.3/10

Value: 3.3

Growth: 7.0

Quality: 7.2

Yield: 1.2

Momentum: 4.0

Volatility: 3.0

1-Year Total Return ->

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Stock-Card
Guerbet

A-Score: 3.0/10

Value: 8.3

Growth: 2.6

Quality: 2.1

Yield: 2.5

Momentum: 1.0

Volatility: 1.3

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

89.9$

Current Price

89.9$

Potential

-0.00%

Expected Cash-Flows