Austrian company Andritz anticipates increased project activity across markets for full fiscal 2025. The company expects revenue and operational profitability, measured by the comparable EBITA margin, to remain stable. Boosted by a strong order backlog and growing demand for service and green technologies, revenue is forecasted to be between €8.0 billion and €8.3 billion (~$8.72 billion-$9.05 billion).
Profitability is expected to benefit from ongoing competitiveness measures and a better revenue mix, driven by the growth of the service business. As a result, the comparable EBITA margin is projected to range between 8.6 per cent and 9.0 per cent, excluding non-operating items.
Joachim Schonbeck, CEO at Andritz, shared:
“Although we were not able to achieve growth due to the economic headwinds in 2024, we proactively addressed our capacities early on and successfully improved our operating profitability. Despite the challenging environment, we could deliver strong results. I am proud of how our teams continue to adapt and innovate, helping our customers to reach their targets. We are prepared for the challenging conditions to continue but also for emerging opportunities.”
Fiscal 2024 Financial Performance
In 2024, Andritz reported revenue of €8.31 billion (~$9.06 billion), a 4 per cent decrease compared to the previous year. Order intake for the year stood at €8.28 billion, reflecting a 3.2 per cent decline YoY. The EBITA margin remained stable at 8.6 per cent, while EBITA slightly decreased to €713.0 million, down 3.9 per cent.
Operational profitability showed improvement, with the comparable EBITA margin rising from 8.7 per cent in 2023 to 8.9 per cent in 2024, supported by a stronger revenue mix and enhanced project execution.
Net income, including non-controlling interests, reached €496.5 million, down 1.5 per cent YoY but still the second highest in company history. The net income margin hit a record 6.0 per cent, attributed to the company’s focus on its service business. Service revenue grew across all business areas, accounting for 41 per cent of total revenue. This positive shift in the revenue mix, along with robust project execution, bolstered operational profitability to 8.9 per cent.
The Environment and Energy sector saw revenue growth of 8.2 per cent YoY, while the pulp and paper business experienced an 8.4 per cent decline due to the lack of major pulp mill orders.
Fourth Quarter (Q4) Performance
In Q4 2024, Andritz saw a significant uptick in order intake, which rose 24 per cent YoY to €2.53 billion, providing a strong contribution to the annual figures. This included a 25 per cent increase in Pulp & Paper orders, which reached €812 million.
Revenue for Q4 stood at €2.29 billion (~$2.50 billion), a 7 per cent decline YoY. Despite the drop, operational profitability improved, with the comparable EBITA margin increasing to 10.2 per cent, up from 10.0 per cent in Q4 2023.
Net income for the quarter was €154 million, a 3 per cent decrease YoY, underscoring the group’s continued efforts to maintain strong performance despite challenging conditions.
