Germany's Drägerwerk prelim Q3 net sales rise, EBIT falls

Overview

• Germany medical and safety tech firm's preliminary Q3 net sales up, EBIT below prior year

• Safety division net sales rose, while medical division sales declined slightly

• Company confirmed full-year forecast for net sales and EBIT margin

Outlook

• Draegerwerk confirms 2026 forecast for net sales growth of 2.0% to 6.0%

• Company maintains 2026 EBIT margin outlook at 6.0% to 8.0%

Result Drivers

• FUNCTIONAL EXPENSES - Co said lower net sales growth in Q3 was offset by a disproportionate increase in functional expenses, weighing on EBIT

• CUSTOMS DUTY REFUNDS - Co said customs duty refunds of EUR 20.1 mln boosted gross margin and EBIT in Q3

• SAFETY DIVISION DEMAND - Co said strong demand in safety division, especially in Germany, Americas and Asia-Pacific, drove order intake growth

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 2 "strong buy" or "buy", 5 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the advanced medical equipment & technology peer group is "buy."

• Wall Street's median 12-month price target for Draegerwerk AG & Co KGaA is €101.50, about 13% above its October 14 closing price of €89.80

• The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 8 three months ago

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)