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Investing.com -- Drägerwerk AG & Co. KGaA reported mixed preliminary second-quarter results on Friday, showing strong order intake but weaker sales and margins.
The German medical and safety technology company saw order intake rise 10.5% to €877 million compared to the same period last year, or 14.3% when adjusted for currency effects.
This growth was primarily driven by the Medical (TASE:BLWV) Division, where orders surged 20.3% (25.5% currency-adjusted) to approximately €537 million, boosted by a significant multi-year contract from Mexico valued in the mid-double-digit million euro range.
Despite the robust order book, quarterly net sales decreased slightly by 0.6% (1.8% currency-adjusted) to €780 million.
The company’s gross margin contracted to 43.8% from 44.3% in the prior-year period, affected by lower sales volume, product mix changes, tariffs, and currency effects.
Earnings before interest and taxes (EBIT) fell to €20 million from €40.7 million in Q2 2024.
In the Medical Division, net sales increased by 2.1% (5.0% currency-adjusted) to approximately €438 million, while the Safety Division experienced a 3.9% decline (2.0% currency-adjusted) to around €342 million.
Safety Division orders also decreased by 2% to €340 million.
Despite the quarterly performance challenges, Drägerwerk maintained its full-year 2025 guidance, projecting net sales growth of 1-5% (currency-adjusted) and an EBIT margin between 3.5% and 6.5%.
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