Drägerwerk’s stock has had a somewhat mixed year up until mid-October. However, after presenting their first Q3 figures, the medical technology and safety technology company has presented itself strongly. Especially the increased margin forecast has given the Drägerwerk stock a boost.

In recent years, the Lübeck-based company has seen times when it was going up and down steeply. Most recently, the coronavirus pandemic has been dominating Drägerwerk. The end of the special economic situation and significant supply chain problems have been impacting the company since mid-2021. After a difficult period, Drägerwerk is now definitively back in the black.

Drägerwerk: Impressive Quarterly Figures After nine months of the year, Drägerwerk has achieved revenue of €2.3 billion, which is 17% more than in the same period of the previous year. Especially the smaller segment of safety technology has recently been able to increase. The EBIT rose to almost €77 million, while in the previous year after nine months it was at around -€148 million.

The EBIT margin consequently rose to 3.3%. Even on the bottom line, Drägerwerk is slipping back into the black. After three of four quarters, the company is showing a profit of around €47 million. In the same period of the previous year, Drägerwerk had reported a loss of almost €113 million.

The overall good nine-month figures have prompted the company to raise its forecast for the full year. The currency-adjusted revenue growth is still expected to be between 7% and 11%, while the EBIT margin is expected to be between 2% and 4%. Previously, Drägerwerk had still expected a margin between 0% and 3%.

What now for Drägerwerk stock? Already in the first half of 2023, Drägerwerk had achieved a strong revenue growth compared to the weak 2022. However, on the one hand, the margin was not yet fully convincing and the order intake was also causing some concern to investors. After nine months, both key figures are going up. In Q3, the order intake rose by almost 7% to around €807 million.

Should the company be able to increase profitability in the next quarters as well as revenue and collect more new orders, the Drägerwerk stock has significant potential. The stock is already up around 20% since the beginning of the year, but it is still a long way to reach the 2021 levels.