Andritz Ag · VIE:ANDR
Andritz — Andritz Ag Graz Akt — Q2 2025 Earnings Presentation
39 slides from Andritz's earnings presentation, Jul 31, 2025
Slide 1: Q2/H1 2025 Financial Results
ANDRITZ GROUP Q2/H1 2025 FINANCIAL RESULTS JULY 31, 2025
Slide 2: Agenda
AGENDA CEO Key Messages & 01 Q2/H1 2025 Highlights Financial Performance 02 Q2/H1 2025 03 Update on Business Areas 04 Outlook 2025 & Targets 2027 2
Slide 3: CEO Key Messages & Q2/H1 2025 Highlights
01 CEO KEY MESSAGES & Q2/H1 2025 HIGHLIGHTS 3
Slide 4: High order intake with strong growth in Q2 and H1
HIGH ORDER INTAKE WITH STRONG GROWTH IN Q2 AND H1 Strong order intake in both Q2 and H1 • Continued increasing project activity, still no significant tariff impact recorded • Increase in Q2 driven by strong growth in Metals and Hydropower • Satisfactory level in Pulp & Paper in Q2, decline in Enviro
Slide 5: Stable profitability despite revenue decline (Q2 2025)
STABLE PROFITABILITY DESPITE REVENUE DECLINE Major financial KPIs Q2 2025 ORDER INTAKE REVENUE ORDER BACKLOG € 2.4 bn € 1.9 bn € 10.4 bn (Q2 2024: € 1.9 bn // +26%) (Q2 2024: € 2.1 bn // -10%) (Q2 2024: € 9.7 bn // +7%) EBITA comparable | margin EBITA reported | margin NET INCOME € 159 mn | 8.4% € 1
Slide 6: Stable profitability despite revenue decline (H1 2025)
STABLE PROFITABILITY DESPITE REVENUE DECLINE Major financial KPIs H1 2025 ORDER INTAKE REVENUE ORDER BACKLOG € 4.7 bn € 3.7 bn € 10.4 bn (H1 2024: € 3.8 bn // +23%) (H1 2024: € 4.0 bn // -8%) (H1 2024: € 9.7 bn // +7%) EBITA comparable | margin EBITA reported | margin NET INCOME € 303 mn | 8.3% € 28
Slide 7: 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 8: 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 9: 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 10: 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 11: 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 12: 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 13: Continuation of acquiring complementary businesses
CONTINUATION OF ACQUIRING COMPLEMENTARY BUSINESSES Major acquisitions 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 Metals • Acquisition o
Slide 14: Service business
SERVICE BUSINESS Steadily increasing Service revenue share to an all-time high of 44% DEVELOPMENT OF TOTAL REVENUE (€ mn) vs. SERVICE REVENUE (%) REVENUE SPLIT: CAPITAL / SERVICE H1 2025 VS. H1 2024 (%) 8,660 +5% 8,314 ~8,000 Capital 7,543 56% (60%) 6,674 6,700 6,463 5,889 6,031 Service 44% (40%) 39
Slide 15: Financial Performance Q2/H1 2025
02 FINANCIAL PERFORMANCE Q2/H1 2025 15
Slide 16: 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 17: EBITDA – Net income bridge H1 2025
EBITDA – NET INCOME BRIDGE H1 2025 in € mn 374.3 (423.4)* • Lower Depreciation Due to smaller impairment last year 288.7 -85.6 (333.0)* 257.8 257.3 • Higher IFRS 3 Amortization (-90.4)* Driven by recent acquisitions -30.9 (309.2)* -0.5 (300.6)* (-23.8)* (-8.6)* 191.6 • Improved financial result Lowe
Slide 18: 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 19: 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 20: 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 1,772 1,838 1,787 • Operating cash flo
Slide 21: 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 22: 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 23: 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 23
Slide 24: 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 25: 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% 9.0% • ROIC significantly
Slide 26: 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 27: Update on Business Areas
03 UPDATE ON BUSINESS AREAS 27
Slide 28: 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 29: 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 30: 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 31: 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 32: Guidance 2025 & Mid-term Targets 2027
04 GUIDANCE 2025 & MID-TERM TARGETS 2027 32
Slide 33: 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 34: 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 35: 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 36: 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 37: 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 11.1 11.7 11.1 10.0 10.0 9.9 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 38: Q&A
Q&A
Slide 39: 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