Andritz Ag · VIE:ANDR
Andritz — Investor Presentation (August 2025)
51 slides from Andritz's investor presentation, August 2025
Slide 1: Investor Presentation August 2025
ANDRITZ GROUP I N V E S T O R P R E S E N TAT I O N AUGUST 2025
Slide 2: Agenda
AGENDA 01 ANDRITZ AT A GLANCE 02 GROWTH STRATEGY 03 FINANCIAL PERFORMANCE 04 GUIDANCE 2025 & TARGETS 2027 05 Q2 / H1 2025 FINANCIAL RESULTS 2
Slide 3: ANDRITZ at a Glance
01 ANDRITZ AT A GLANCE 3
Slide 4: Diversified end markets, high exposure to service and future technologies
A N D R I T Z AT A G L A N C E DIVERSIFIED END MARKETS, HIGH EXPOSURE TO SERVICE AND FUTURE TECHNOLOGIES ANDRITZ GROUP 2024 Order Intake € 8,277 mn Backlog € 9,750 mn Revenue € 8,314 mn EBITA comparable € 743 mn PULP & PAPER METALS HYDROPOWER ENVIRONMENT & ENERGY Structural (Urban) population growth
Slide 5: Key Attributes
A N D R I T Z AT A G L A N C E KEY ATTRIBUTES Our core DNA – strong market positions, resilient business model, high Service share Resilient business model and strong positioning Leading market positions in attractive markets Pulp: #1 Forming: #1 Hydropower: Environment & Paper: #3 Processing: #1-2
Slide 6: Key Attributes
A N D R I T Z AT A G L A N C E KEY ATTRIBUTES Our core DNA – strong market positions, resilient business model, high Service share Strong financials and attractive shareholder return Conservative balance sheet € 984 mn 0.36 ~17x Strong net cash position Net liquidity Debt to equity ratio Interest co
Slide 7: A truly global player, servicing customers worldwide
A N D R I T Z AT A G L A N C E A TRULY GLOBAL PLAYER, SERVICING CUSTOMERS WORLDWIDE REVENUE BY REGION DISTRIBUTION OF EMPLOYEES 2024 Rest of the world Asia (without China) 4% Africa, Australia Asia Europe Rest of >32% working in engineering, 28% 31% China 8% 23% Europe technology or project manageme
Slide 8: Growth Strategy
02 GROWTH STRATEGY 8
Slide 9: Long-term profitable growth
C O R P O R AT E S T R AT E G Y LONG-TERM PROFITABLE GROWTH DECARBONIZATION LONG-TERM PROFITABLE GROWTH DIGITALIZATION • Growth in Revenue • Growth in Profitability • Growth in Service Share CUSTOMER SERVICE 9
Slide 10: On track to meet 2025 ESG targets
ON TRACK TO MEET 2025 ESG TARGETS – MAJORITY ALREADY ACHIEVED (S t a t u s H 1 2 0 2 5 ) ENVIRONMENT SOCIAL GOVERNANCE 44% Share of revenue from sustainable solutions 56% Reduction in the annual accident frequency rate 90% Procurement volume covered by assessed and products** (>1 day of absence) y/y
Slide 11: Growth pockets driven by green transition
GREEN PRODUCTS GROWTH POCKETS DRIVEN BY GREEN TRANSITION Business Quotation Construction Operation Service Area Green Hydrogen EE Key enabler of green transition • Developing economically feasible Carbon Capture EE key technologies for the green transition Textile recycling PP • Providing full life
Slide 12: Environment & Energy: comprehensive portfolio of sustainable solutions
ENVIRONMENT & ENERGY COMPREHENSIVE PORTFOLIO OF SUSTAINABLE SOLUTIONS, STRONG MARKET SHARES IN NICHES SEPARATION FEED & BIOFUEL PUMPS CLEAN AIR TECHNOLOGIES GREEN HYDROGEN Offering & industries Emissions reduction equipment Mechanical & thermal, liquid & Pumping technology for water Plant solutions,
Slide 13: Redefining the future: unleashing our innovation engine
I N N O V AT I O N REDEFINING THE FUTURE: UNLEASHING OUR INNOVATION ENGINE R&D at ANDRITZ Among top 500 most research-intensive companies globally1) • Global R&D footprint Multiple dedicated research centers across Europe, Asia and North America • R&D team strength >1,200 employees in R&D, technolog
Slide 14: Supporting customers throughout plant life cycle
D I G I TA L I Z AT I O N SUPPORTING CUSTOMERS THROUGHOUT PLANT LIFE CYCLE PROCESS OPTIMIZATION PLANT MANAGEMENT ASSET OPTIMIZATION CYBERSECURITY TRAINING Maximize Maximize the Maximize Proactively Boost customer plant process value of data – productivity, manage digital expertise and performance fr
Slide 15: Metris - the open and scalable digital platform
D I G I TA L I Z AT I O N METRIS - THE OPEN AND SCALABLE DIGITAL PLATFORM PULP & PAPER METALS HYDROPOWER ENVIRONMENT & ENERGY Cyber Security built in Asset Process Plant optimization optimization management Latest Gen.AI Autonomous models leveraged Smart products Metris X (soft PLC) Simulation & dig
Slide 16: Broad service portfolio
SERVICE BUSINESS BROAD SERVICE PORTFOLIO Broad Service offering across four business areas Spare parts Wear parts, consumables, fast-turn items, critical components, generally high margin products Maintenance & field services On-site repair, inspections, emergency support, shutdown assistance Upgrad
Slide 17: Growth in service business is management priority
SERVICE BUSINESS GROWTH IN SERVICE BUSINESS IS MANAGEMENT PRIORITY Ø Lifecycle Value Contribution (exemplary for Pulp & Paper industry) Significant potential for further growth in Service business 3 14 • Significant Service market size Service market estimated 5-8x larger than Capital market 9 Signi
Slide 18: High service growth
SERVICE BUSINESS HIGH SERVICE GROWTH DEVELOPMENT OF SERVICE REVENUES AND SERVICE REVENUE SHARE Service business: strong growth and attractive margins 3,428 +8% 3,305 • Service business as backbone of resilient 2,969 and profitable growth 2,589 2,555 • Significantly higher growth rates and 2,385 marg
Slide 19: ANDRITZ - a M&A success story
M & A S T R AT E G Y ANDRITZ – A M&A SUCCESS STORY M&A - Strong track record of selection and value creation #31 #88 • M&A focus areas: Acquisitions Acquisitions High service share, digitalization & automation offering, technology additions to since 2018 alone since 2002 complement current value cha
Slide 20: Portfolio expansion in all business areas
M & A S T R AT E G Y PORTFOLIO EXPANSION IN ALL BUSINESS AREAS PULP & PAPER METALS HYDROPOWER ENVIRONMENT & ENERGY 2002 ABB Drying 2016 SHW CastingTech 2002 SELAS SAS Furnace Div. 2006 VA TECH HYDRO 2002 3SYS 2003 IDEAS Simulation 2017 Paperchine 2004 Kaiser 2007 Tigép 2003 Fiedler 2003 Acutest Oy 2
Slide 21: Continuation of acquiring complementary businesses
M & A S T R AT E G Y CONTINUATION OF ACQUIRING COMPLEMENTARY BUSINESSES – MAJOR ACQUISITION IN 2025 DECARBONIZATION GROWTH CUSTOMER SERVICE GROWTH LDX (USA) Q1 A. Celli Paper (Italy) Q2 Diamond Power (USA) Q2 Salico Group (Italy) Q2 2025 2025 2025 2025 Environment & Energy Pulp & Paper Pulp & Paper
Slide 22: Financial Performance
03 FINANCIAL PERFORMANCE 22
Slide 23: Across-the-cycle growth and gradual EBITA margin improvements
L O N G - T E R M P R O F I TA B L E G R O W T H ACROSS-THE-CYCLE GROWTH AND GRADUAL EBITA MARGIN IMPROVEMENTS 8.9% 8.5% 8.5% 8.7% Across-the-cycle growth 8.3% 7.5% 7.2% 7.2% 6.9% 6.8% 7.1% 6.9% 6.8% 7.0% 8,660 • Exposed to various sectors with somewhat 6.4% 6.5% 8,314 6.3% 6.1% 6.1% phased cycles 5
Slide 24: Stable development in service and base business
O R D E R I N TA K E STABLE DEVELOPMENT IN SERVICE AND BASE BUSINESS DEVELOPMENT OF ORDER INTAKE (in € mn) 9,263 8,552 Mid-size capital order intake steadily 8,277 7,880 1,767 924 growing 521 7,282 1,213 6,646 Stronger growth in Service order 1,394 6,108 5,580 655 intake, gradual increase in Service
Slide 25: Sequential recovery in backlog to historically high level
SEQUENTIAL RECOVERY IN BACKLOG TO HISTORICALLY HIGH LEVEL DEVELOPMENT OF ORDER BACKLOG (in € mn) ORDER BACKLOG BY BUSINESS AREA H1 2025 10,822 10,569 10,408 10,361 10,170 10,398 Environment & 9,859 9,977 9,873 10,003 9,709 Pulp & 9,750 Energy 9,435 9,383 Paper 14% 8,166 26% 7,925 7,397 7,330 7,403 7
Slide 26: Cash flow development
CASH FLOW DEVELOPMENT OPERATING CASH FLOW ROLLING AVERAGE OPERATING CASH FLOW * 604 567 574 538 in € mn in € mn 497 • Operating Cash Flow influenced by Working 430 Capital fluctuations 346 359 driven by project 300 285 execution cycle 268 264 227 233 206 186 207 • Maintaining overall 155 154 higher
Slide 27: Strong financial position
STRONG FINANCIAL POSITION Enhanced capital allocation while still maintaining a strong financial position LIQUID FUNDS and NET LIQUIDITY (in € mn) Main changes in Net liquidity Acquisition Schuler: Acquisition Xerium: H1 2025 VS. FY 2024 € 600 mn € 770 mn 2,051 1,838 1,787 • Operating cash flow: € +
Slide 28: Operating net working capital development
OPERATING NET WORKING CAPITAL DEVELOPMENT Slight reduction of Operating Net Working Capital in Q2 30 1.200 1.024 982 980 Calculation methodology 25 963 1.000 886 898 860 817 805 + Inventories 20 730 800 687 + Trade accounts receivable 671 670 658 631 617 576 - Trade accounts payable 15 525 537 600 1
Slide 29: Operating net working capital development
OPERATING NET WORKING CAPITAL DEVELOPMENT Trade Working Capital slightly improved in Q2, prepayments increasing TRADE WORKING CAPITAL 1,457 1,482 1,463 1,437 1,377 1,191 1,243 1,218 1,222 1,226 1,248 1,218 1,246 Trade Working Capital 1,097 1,074 1,104 • Inventories + Receivables – Payables 1,031 930
Slide 30: Dividend of 2.60 EUR/share paid in April
DIVIDEND OF 2.60 EUR/SHARE PAID IN APRIL Gradually increasing dividend payments, >50% target payout DIVIDEND PER SHARE (EUR) 2.50 2.60 2.10 1.65 1.00 0.50 2019 2020 2021 2022 2023 2024 PAYOUT RATIO (%) 50.3 50.7 51.8 48.1 48.5 >50% 39.4 2019 2020 2021 2022 2023 2024 30
Slide 31: Enhanced and balanced capital allocation
ENHANCED AND BALANCED CAPITAL ALLOCATION Increased spending on capex, M&A & dividends - capital allocation remains balanced and funded internally 1,047 OPERATING CASH FLOW COVERS GRADUAL INCREASE IN CAPITAL ALLOCATION (in € mn) 822 95% OF CAPITAL ALLOCATION 711 674 758 637 77 530 117 481 460 462 473
Slide 32: ROIC significantly above WACC
ROIC SIGNIFICANTLY ABOVE WACC ROIC significantly above average cost of capital DEVELOPMENT ROIC vs WACC 22.6% 22.5% • ROIC above 20% in H1 2025 20.7% 20.0% Slight decrease due to EBITA 17.2% 16.9% decline in H1-2025 13.0% 12.3% • WACC on relatively stable level 10.4% 10.1% • ROIC significantly above
Slide 33: Guidance 2025 & Targets 2027
04 GUIDANCE 2025 & TARGETS 2027 33
Slide 34: Impact of US tariffs & FX rates
IMPACT OF US TARIFFS & FX RATES No adverse impact from increasing trade barriers Limited FX impact in H1 2025 on major ANDRITZ markets yet (no change vs Q1) FX IMPACT BY CURRENCY ANDRITZ is a truly global supplier with >280 locations IN H1 2025: • The US is among its most important markets, contribu
Slide 35: Guidance 2025 confirmed
GUIDANCE 2025 CONFIRMED ANDRITZ expects to arrive at the low end of its FY 2025 guidance ranges for revenue and comparable EBITA margin. Market outlook 2025 GUIDANCE 2025 • Project activity has picked up across markets Revenue • Improving order backlog • Growing demand for green technologies € 8.0 -
Slide 36: Mid-term targets 2027 confirmed
MID-TERM TARGETS 2027 CONFIRMED Mid-term assumptions MID-TERM TARGETS 2027 • Growth in Capital sales, expansion of Service share Revenue • Increasing demand for green technologies • Increasing digitalization, continuation of (bolt-on) M&A € 9 - 10 bn • Mix improvements, selective capacity adjustment
Slide 37: Revenue target 2027
REVENUE TARGET 2027 Revenue target 2027 Revenue growth € 9-10 bn CAGR 4.5% € 9-10 bn (to mid-point) Incremental growth • Accelerated growth in Service business € 8.3 bn • Accelerated demand for Base growth Green Products • Large-scale orders • Growth in Capital sales, expansion of Service share • La
Slide 38: Comparable EBITA margin targets 2027
COMPARABLE EBITA MARGIN TARGETS 2027 Comparable EBITA margin target range in % (changed from reported EBITA margin previously) Target 2027 PULP & PAPER 11-13% METALS 10.0 11.1 10.0 9.9 11.7 11.1 10.5 11.0 Margin Target 2027 target 2027 6-8% >9% 4.4 2.0 2.0 3.7 5.1 5.5 0.5 2017 2018 2019 2020 2021 20
Slide 39: Q2 / H1 2025 Financial Results
05 Q2 / H1 2025 FINANCIAL RESULTS 39
Slide 40: Summary - key figures Q2 / H1 2025
SUMMARY - KEY FIGURES Q2 / H1 2025 UNIT Q2 2025 Q2 2024 +/- H1 2025 H1 2024 +/- 2024 Order intake € mn 2,394.4 1,895.1 26% 4,726.6 3,845.4 23% 8,276.9 Order backlog (as of end of 10,398.3 9,709.1 7% 10,398.3 9,709.1 7% 9,749.9 period) € mn Revenue € mn 1,890.2 2,100.2 -10% 3,651.5 3,986.6 -8% 8,313.
Slide 41: Project activity increasing
PROJECT ACTIVITY INCREASING Reflected in improving Order Intake momentum DEVELOPMENT OF ORDER INTAKE (in € mn) 3,000 Strong Order Intake 2,500 • Order intake significantly 2,000 above € 2 bn in last three quarters 1,500 • Driven by all Business Areas 1,000 • Book-to-bill above 1 for third 500 consec
Slide 42: Order intake
ORDER INTAKE Significant increase in order intake ORDER INTAKE (in € mn) ORDER INTAKE (in € mn) ORDER INTAKE BY REGION H1 2025 VS. H1 2024 (%) Q2 2025 Q2 2024 +/- +23% Pulp & Paper 758.7 842.8 -10% 4,727 Metals 526.7 321.0 64% Hydropower 776.5 284.1 173% 3,845 Environment & Energy 332.5 447.2 -26% E
Slide 43: Revenue
REVENUE Decrease in total revenue, increase in Service share REVENUE (in € mn) REVENUE (in € mn) REVENUE BY REGION H1 2025 VS. H1 2024 (%) Q2 2025 Q2 2024 +/- -8% Pulp & Paper 733.8 905.7 -19% 3,987 Metals 382.0 454.5 -16% 3,652 Hydropower 402.7 361.4 11% Environment & Energy 371.7 378.6 -2% Europe
Slide 44: EBITA development
EBITA DEVELOPMENT Stable comparable EBITA margin despite decline in revenue EBITA AND EBITA MARGIN* EBITA AND EBITA MARGIN* (COMPARABLE) (REPORTED) • Stable comparable EBITA margin -8% -13% • Stable or increasing comparable EBITA margins 329 333 in Pulp & Paper, Metals, and Environment & (8.2%) 303
Slide 45: EBITDA to free cash flow bridge H1 2025
EBITDA TO FREE CASH FLOW BRIDGE H1 2025 Enhanced M&A delivery led to an increase in M&A capex (423.4)* 374.3 in € mn • CF from changes in NWC (€ mn) -88.2 ∆ Inventories (-30.8)* -114.1 +26.0 ∆ Trade receivables (18.4)* 8.1 -120.3 ∆ Trade payables (308.5)* -68.2 168.7 -36.5 ∆ Adv. payments made (-69.
Slide 46: Pulp & Paper
PULP & PAPER UNIT Q2 2025 Q2 2024 +/- H1 2025 H1 2024 +/- 2024 Order intake € mn 758.7 842.8 -10% 1,733.3 1,485.3 17% 2,779.8 Order backlog (as of end 2,687.4 2,889.5 -7% 2,687.4 2,889.5 -7% 2,459.1 REVENUE BY REGION of period) € mn H1 2025 VS. H1 2024 (%) Revenue € mn 733.8 905.7 -19% 1,378.7 1,738
Slide 47: Metals
METALS UNIT Q2 2025 Q2 2024 +/- H1 2025 H1 2024 +/- 2024 Order intake € mn 526.7 321.0 64% 872.3 670.1 30% 1,707.2 Order backlog (as of end 1,890.2 1,842.4 3% 1,890.2 1,842.4 3% 1,965.3 REVENUE BY REGION of period) € mn H1 2025 VS. H1 2024 (%) Revenue € mn 382.0 454.5 -16% 793.8 894.0 -11% 1,811.2 E
Slide 48: Hydropower
HYDROPOWER UNIT Q2 2025 Q2 2024 +/- H1 2025 H1 2024 +/- 2024 Order intake € mn 776.5 284.1 173% 1,345.4 781.7 72% 2,170.5 Order backlog (as of end 4,365.6 3,473.2 26% 4,365.6 3,473.2 26% 3,933.7 REVENUE BY REGION of period) € mn H1 2025 VS. H1 2024 (%) Revenue € mn 402.7 361.4 11% 775.5 663.7 17% 1,
Slide 49: Environment & Energy
ENVIRONMENT & ENERGY UNIT Q2 2025 Q2 2024 +/- H1 2025 H1 2024 +/- 2024 Order intake € mn 332.5 447.2 -26% 775.6 908.3 -15% 1,619.4 Order backlog (as of end 1,455.1 1,504.0 -3% 1,455.1 1,504.0 -3% 1,391.8 REVENUE BY REGION of period) € mn H1 2025 VS. H1 2024 (%) Revenue € mn 371.7 378.6 -2% 703.5 690
Slide 50: Legal Disclaimer
LEGAL DISCLAIMER © ANDRITZ AG 2025 This presentation contains forward-looking statements, which include statements about future events, future financial performance, plans, strategies, expectations, prospects, regulatory changes, and changes in customer investment activity. Such statements may be id
Slide 51: ANDRITZ. For growth that matters.
ANDRITZ. FOR GROWTH THAT MATTERS. 51