Andritz (ANDR) H1 2024 earnings summary

Executive summary

• Order intake declined 18% year-over-year to €3.8 billion, mainly due to fewer large capital investments in Pulp & Paper and Metals, while Environment & Energy and Service segments showed strong growth.

• EBITA remained stable at €333 million in H1 2024, with the margin improving to 8.4% from 8.1% year-over-year; net income rose 1% to €224 million, with a net income margin of 5.6%.

• Guidance for 2024 is confirmed, supported by a large order backlog and growth in Service and Green Products.

• Important acquisitions, including Procemex and NAF AB, strengthened automation, digitalization, and the Pulp & Paper segment; OTORIO joint venture deconsolidated after new investors joined.

• Cash flow from operations rebounded to €308 million in H1 2024, with net liquidity at €831 million after repaying a €300 million loan.

Financial highlights

• H1 2024 revenue was €4.0 billion, down 3% year-over-year; order backlog at June 30, 2024 was €9.7 billion, down 8.1% year-over-year.

• EBITDA increased 2% to €423 million, with the margin at 10.6%.

• Capital expenditure rose to €107 million in H1 2024, reflecting growth investments.

• Basic EPS for H1 2024 was €2.25, compared to €2.29 in H1 2023.

• Equity ratio improved to 26.5% at period-end.

Outlook and guidance

• 2024 guidance confirmed, with stable revenues and profitability expected, supported by a strong order backlog and robust demand for green products and services.

• No quick market recovery is anticipated, but project activity is picking up in several industries.

• Group targets for 2026: revenue above €10 billion, EBITDA/EBITA margin above 9%, net income above 6%, with a focus on M&A in service, digitalization, and green transformation.

• M&A strategy continues, focusing on service, digitalization, and green transformation.