Andritz (ANDR) Q3 2024 earnings summary

Executive summary

• Q3 order intake increased 6% year-over-year to €1.9 billion, while revenue declined 3% to €2.0 billion; service business grew and now represents 40% of revenue.

• Profitability remained stable, with Q3 EBITDA at €174 million (8.5% margin) and net income at €118 million (5.8% margin); EBITA and margins held steady year-over-year.

• Additional provisions for capacity adjustments were made, and project execution improved with a better mix and price increases.

• Order backlog decreased 9% year-over-year, reflecting lower order intake in most segments except Environment & Energy.

• Service and green technology demand offset weak capital investment in Pulp & Paper and Metals.

Financial highlights

• Year-to-date (Q1–Q3) order intake was €5.7 billion, down 12% year-over-year; revenue was €6.0 billion, down 3%.

• EBITDA for Q1–Q3 was €634.9 million (+0.3% year-over-year), with a margin of 10.5%; EBITA was €507.1 million (8.4% margin).

• Net income for Q1–Q3 was €342.2 million (5.7% margin), nearly flat year-over-year.

• Operating cash flow for Q1–Q3 was €404 million, with free cash flow at €247 million.

• Net liquidity at end of Q3 was €815 million, with liquid funds of €1.35 billion.

Outlook and guidance

• 2024 revenue guidance was adjusted from stable to slightly decreasing (around 3% down), with stable profitability and EBITA margin expected.

• No quick recovery is expected in core markets; order intake trends suggest limited revenue growth in 2025.

• Group targets for 2024–2026 include revenue growth to over €10 billion, EBITA margin above 9%, and net income margin above 6%.

• Robust demand for green technologies and service business supports profitability.

• Global economic growth forecast at 3.2% for 2024 and 2025; inflation expected to decline.