Background and Strategy
Drägerwerk, a renowned manufacturer of medical and safety technology, has achieved a remarkable trend reversal after decades of decline. This positive development is attributed to a strategic focus on core areas such as respiratory protective equipment for firefighters and industry, as well as ventilators for intensive care units. Given the stabilizing sectors, this success is particularly interesting for investors in the German-speaking region.
Current Developments
In the first quarter of 2025, Drägerwerk experienced a slight decline in revenue and profit; however, order intake rose significantly. The strategic direction towards specific product areas with stable demand, such as respiratory protection and ventilators, is paying off. While the business in China still presents challenges, the increase in EBIT by over 16 percent in 2024 demonstrates the success of the realignment.
Relevance for Investors
For German investors, the renewed strength of Drägerwerk presents a promising investment opportunity. The return to operational stability through focus and realignment in promising sectors could enable stable value development in the long term.
Comparison with Other Companies
These developments at Drägerwerk show parallels to other successful trend reversals in the industry. Companies like ElringKlinger and Wacker Neuson also illustrate the value of strategic adjustments: while ElringKlinger regained profitability through restructuring, Wacker Neuson increased its competitiveness despite challenging market conditions.