EQS-News: ANDRITZ reports solid development in Q3 2024

GRAZ, OCTOBER 31, 2024 International technology group ANDRITZ reported solid business development in the third quarter of 2024 despite the continuously challenging economic environment.

While order intake increased from the third quarter of 2023, profitability (EBITA margin) remained stable, and revenue declined slightly. The increase in order intake was driven by several mid-sized orders in the Hydropower and Metals business areas.

E-mobility, hydropower upgrades, and engineering studies
The order intake in Q3 included an annealing and coating line and a cold rolling mill to produce non-grain oriented electrical steel (NOES), supporting the automotive industry’s electrification journey toward more sustainable transportation. In the Hydropower business area, several plant upgrades, including the major rehabilitation of the Chenderoh plant in Malaysia, contributed to the third-quarter order intake.

In addition, customers entrusted ANDRITZ with engineering studies for innovative solutions, enabling the green transition in various industries. ANDRITZ was selected to perform the front-end engineering design (FEED) for a carbon capture plant for the Finnish company Westenergy. E.ON Hydrogen ordered an engineering study for an electrolyzer plant to produce green hydrogen in Germany.

ANDRITZ CEO Joachim Schönbeck commented: “In view of the continued challenging economic environment, we are satisfied with the order intake in the third quarter and pleased that we were able to maintain our profitability at last year’s level despite the decline in revenue.”

Due to the continuing market weakness, ANDRITZ has initiated capacity adjustments across industries and regions. The situation is particularly challenging in the automotive sector, where structural changes are affecting ANDRITZ’s subsidiary Schuler in Germany.

Revenue guidance slightly adjusted
Although project activity has picked up in several markets, ANDRITZ does not expect a quick recovery of the markets. Considering these continuously difficult market conditions and the financial performance in the first three quarters of 2024, ANDRITZ has adjusted its outlook for the year 2024 from stable revenue and profitability (EBITA margin) to slightly decreasing revenue and stable profitability.

The key financial figures developed as follows during the reporting period:

• Order intake in the third quarter of 2024 increased to 1,903.1 MEUR (+5.5% vs. Q3 2023: 1,803.5 MEUR). In the first three quarters of 2024, order intake amounted to 5,748.5 MEUR (-11.8% vs. Q1-Q3 2023: 6,516.0 MEUR). The increase in the third quarter is mainly due to orders in Hydropower (+38.1%) and Metals (+43.7%). Order intake in Pulp & Paper decreased to 482.9 MEUR in Q3 2024 compared to 598.4 MEUR in Q3 2023 (-19.3%). Environment & Energy saw a decrease to 338.9 MEUR compared to the high level of 440.0 MEUR in Q3 2023 (-23.0%), which was driven by the booking of the group’s first green hydrogen order. Order intake in the first three quarters of 2024 increased significantly (+13.4% vs. Q1-Q3 2023).
   
• The order backlog as of September 30, 2024 amounted to 9,382.5 MEUR, decreasing by 5.0% compared to the end of 2023 (9,872.6 MEUR).
   
• Revenue in the third quarter of 2024 decreased by 3% compared to the previous year’s reference period (Q3 2023: 2,104.1 MEUR), reaching 2,041.5 MEUR. In Q1-Q3 2024, revenue amounted to 6,028.1 MEUR (-3.0% vs. Q1-Q3 2023: 6,213.1 MEUR). Environment & Energy achieved a significant increase in revenue (+13.5%), driven by the execution of the high order backlog, while the other business areas showed a stable or declining development.
   
• The operating result (EBITA) in the third quarter of 2024 remained resilient at 174.1 MEUR (-1.3% vs. Q3 2023: 176.4 MEUR), and profitability (EBITA margin) remained stable at 8.5% (Q3 2023: 8.4%). In the first three quarters of 2024, EBITA amounted to 507.1 MEUR, almost unchanged compared to the previous year’s reference period (-0.4% vs. Q1-Q3 2023: 509.0 MEUR). The EBITA margin remained at a very solid level of 8.4% (Q1-Q3 2023: 8.2%).
   
• Net income (including non-controlling interests) decreased to 118.4 MEUR in the third quarter of 2024 (-5.0% vs. Q3 2023: 124.6 MEUR) and amounted to 342.2 MEUR in the first three quarters of 2024 (-1.1% vs. Q1-Q3 2023: 346.1 MEUR).

All figures according to IFRS. Due to the utilization of automatic calculation programs, differences can arise in the addition of rounded totals and percentages. MEUR = million euros. EUR = euros.

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PRESS RELEASE AVAILABLE FOR DOWNLOAD
This press release is available for download at andritz.com/news on the ANDRITZ web site.

FOR FURTHER INFORMATION, PLEASE CONTACT:

Niklas Jelinek
External Communications Lead / Media Relations
press@andritz.com
andritz.com

Matthias Pfeifenberger
Head of Investor Relations
investors@andritz.com
andritz.com

ANDRITZ GROUP
International technology group ANDRITZ offers a broad portfolio of innovative plants, equipment, systems, services and digital solutions for a wide range of industries and end markets. Sustainability is an integral part of the company’s business strategy and corporate culture. With its extensive portfolio of sustainable products and solutions, ANDRITZ aims to make the greatest possible contribution to a sustainable future and help its customers achieve their sustainability goals. ANDRITZ is a global market leader in all four of its business areas – Pulp & Paper, Metals, Hydropower and Environment & Energy. Technological leadership and global presence are cornerstones of the group’s strategy, which is focused on long-term profitable growth. The publicly listed group has around 30,000 employees and over 280 locations in more than 80 countries.

ANNUAL AND FINANCIAL REPORTS
The annual and financial reports are available for download on the ANDRITZ web site at andritz.com.

DISCLAIMER
Certain statements contained in this press release constitute “forward-looking statements”. These statements, which contain the words “believe”, “intend”, “expect”, and words of a similar meaning, reflect the Executive Board’s beliefs and expectations and are subject to risks and uncertainties that may cause actual results to differ materially. As a result, readers are cautioned not to place undue reliance on such forward-looking statements. The company disclaims any obligation to publicly announce the result of any revisions to the forward-looking statements made herein, except where it would be required to do so under applicable law.