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• Order Intake: EUR861 million, surpassing the prior year period.

• Net Sales: EUR730 million, nearly reaching the prior year figure.

• EBIT: EUR0.4 million, down from EUR15.1 million in the prior year.

• Gross Margin: Increased by 0.5 percentage points to 45.8%.

• Expenses: Increased by 4.7%, mainly due to higher personnel expenses.

• Medical Division Order Intake: EUR474 million, up by more than 8%.

• Medical Division EBIT: Minus EUR28 million, down from minus EUR11 million.

• Safety Division Order Intake: Increased by more than 8%.

• Safety Division EBIT: EUR28 million, up by more than 7%.

• Operating Cash Flow: EUR56 million, up from EUR34 million in the prior year.

• Free Cash Flow: Doubled to around EUR32 million.

• Net Financial Debt to EBITDA: Leverage at 0.4.

• Equity Ratio: Stable at almost 50%.

• Dividend: EUR1.97 per common share and EUR2.03 per preferred share.

• Warning! GuruFocus has detected 7 Warning Signs with IST:AYGAZ.

Release Date: April 30, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Draegerwerk AG & Co KGaA reported the best Q1 order intake since 2020, with orders reaching EUR861 million, surpassing the previous year's high level.

• The safety division performed well, with a gross margin increase of 2.2 percentage points due to a more profitable product mix and improved capacity utilization.

• Operating cash flow improved significantly to EUR56 million, up from EUR34 million in the prior year, due to effective working capital management.

• The company maintained a stable equity ratio of almost 50% and plans to distribute a higher dividend, reflecting a healthy financial position.

• Draegerwerk AG & Co KGaA confirmed its annual guidance, expecting net sales growth between 1% and 5% and an EBIT margin between 3.5% and 6.5%.

Negative Points

• The EBIT for Q1 was only EUR0.4 million, significantly lower than the previous year's EUR15.1 million, due to lower net sales volume and higher expenses.

• The medical division's EBIT margin decreased from minus 2.7% to minus 6.7%, with a significant EBIT loss of EUR28 million.

• The company is facing delays in the lifting of an FDA warning letter, which could impact future operations.

• Currency fluctuations, particularly the depreciation of the euro, pose a risk to sales revenue and could impact the EBIT margin by up to 1 percentage point.

• Higher personnel expenses, including a one-off payment due to a collective wage agreement in Germany, increased overall expenses by 4.7% in Q1.

Q & A Highlights

Q: Can you provide details on the impact of tariffs and any mitigation strategies? A: Gert-Hartwig Lescow, CFO, explained that while tariffs are paid on imported products, a significant portion of products for April were already in inventory. The company has stocked up on some parts, but most goods are custom-made to order. The impact of tariffs is expected to be moderated, with potential surcharges passed to customers. The situation is fluid, and changes may occur over the coming months.