Drägerwerk combines safety-critical medical and industrial franchises with recovering margins, low valuation, and a credible path toward 10% EBIT by 2030, though governance and execution risks remain.
Overview
Drägerwerk is a 1889-founded German manufacturer serving two safety-critical markets: Medical, approximately 57% of group sales, and Safety, approximately 43%. It sells capital equipment but also monetizes installed systems through consumables, software, and maintenance, creating a higher-quality revenue stream than a pure equipment vendor. Its moat rests on clinical and industrial switching costs, EU MDR/FDA and fire-safety certifications, EHR interoperability, and a century-plus brand. H1 2026 confirmed improving execution: group sales reached €1,603.2 million, up 7.7% FX-adjusted, gross margin rose to 46.5%, and EBIT more than tripled to €63.8 million, lifting EBIT margin to 4.0%. Management guides to 2.0%-6.0% currency-adjusted full-year revenue growth and a 5.5%-7.5% EBIT margin, versus the prior 5.0%-7.5% range. At approximately €85.00, valuation is only about 10.6x trailing P/E, 9.9x 2026E P/E, 7.0x EV/EBIT, and 0.5x sales versus international medtech averages near 22x P/E and 2.5x sales. **The key catalyst is proof of structural margin recovery toward approximately 10% EBIT by 2030**, supported by the November 18, 2026 Capital Markets Day.