Andritz Ag · VIE:ANDR
Andritz — Andritz Ag Graz Akt — Q1 2025 Earnings Presentation
33 slides from Andritz's earnings presentation, Apr 30, 2025
Slide 1: Q1 2025 Financial Results
ANDRITZ GROUP Q1 2025 FINANCIAL RESULTS APRIL 30, 2025
Slide 2: 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 3: Agenda
AGENDA CEO Key Messages & 01 Q1 2025 Highlights Financial Performance 02 Q1 2025 03 Update on Business Areas 04 Outlook 2025 & Targets 2027 3
Slide 4: CEO Key Messages & Q1 2025 Highlights
01 CEO KEY MESSAGES & Q1 2025 HIGHLIGHTS 4
Slide 5: Satisfactory results in a volatile geopolitical environment
SATISFACTORY RESULTS IN A VOLATILE GEOPOLITICAL ENVIRONMENT Significant increase in order intake • Volatile macroeconomic environment in Q1 2025 • Increase driven by significant pick-up in Pulp & Paper and Hydropower • Stable development in Metals • Further growth in Service business Decrease in rev
Slide 6: Major financial KPIs Q1 2025
SATISFACTORY RESULTS IN A VOLATILE MACROECONOMIC ENVIRONMENT Major financial KPIs Q1 2025 ORDER INTAKE REVENUE ORDER BACKLOG 2.3 billion EUR 1.8 billion EUR 10.2 billion EUR (Q1 2024: 2.0 billion EUR // +20%) (Q1 2024: 1.9 billion EUR // -7%) (Q1 2024: 10.0 billion EUR // +2%) EBITA comparable | mar
Slide 7: Order Intake
ORDER INTAKE Significant increase in order intake ORDER INTAKE (in MEUR) ORDER INTAKE (in MEUR) ORDER INTAKE BY REGION Q1 2025 VS. Q1 2024 (%) +20% 2,332 1,950 Q1 2025 Q1 2024 +/- Pulp & Paper 974.6 642.5 52% Europe / Emerging Metals 345.6 349.1 -1% North America Markets Hydropower 568.9 497.6 14% 6
Slide 8: Revenue
REVENUE Decrease in total revenue, increase in Service revenue REVENUE (in MEUR) REVENUE (in MEUR) REVENUE BY REGION Q1 2025 VS. Q1 2024 (%) -7% 1,886 1,761 Q1 2025 Q1 2024 +/- Pulp & Paper 644.9 832.3 -23% Europe / Emerging Metals 411.8 439.5 -6% North America Markets Hydropower 372.8 302.3 23% 59%
Slide 9: Order Backlog
ORDER BACKLOG Another sequential increase in order backlog to above 10 BEUR Pulp & Paper and Hydropower account for ~2/3 of total order backlog +4% 10,822 10,569 10,408 10,361 10,170 Order backlog in MEUR 9,859 9,977 9,873 10,003 9,709 ORDER BACKLOG BY BUSINESS AREA 9,750 9,435 9,383 IN MEUR Q1 2025
Slide 10: EBITA Development
EBITA DEVELOPMENT Stable margins EBITA AND EBITA MARGIN* EBITA AND EBITA MARGIN* (REPORTED) (COMPARABLE) -7% -6% 152 154 (8.1%) 142 (8.1%) 145 • Satisfactory EBITA development in Q1 2025 (8.1%) (8.2%) • Operational profitability slightly increased (comparable margins) • Stable or increasing comparab
Slide 11: On track to meet 2025 ESG targets
ON TRACK TO MEET 2025 ESG TARGETS – MANY ALREADY ACHIEVED (S t a t u s a t t h e e n d o f 2 0 2 4 ) ENVIRONMENT SOCIAL GOVERNANCE 44% Share of revenue from sustainable solutions 12% Reduction in the annual accident frequency rate 91% Procurement volume covered by assessed and products** (>1 day of
Slide 12: Andritz continued its successful acquisition strategy
ANDRITZ CONTINUED ITS SUCCESSFUL ACQUISITION STRATEGY Major acquisitions in 2025 DECARBONIZATION GROWTH LDX Solutions Q1 2025 A. Celli Paper Q2 2025 Environment & Energy Pulp & Paper • Acquisition of leading provider of emission reduction • Signing of contract to acquire A.Celli Paper – a global sup
Slide 13: Service Business
SERVICE BUSINESS Steadily increasing Service revenue share to an all-time high of 44% DEVELOPMENT OF TOTAL REVENUE (MEUR) VS SERVICE REVENUE (%) REVENUE SPLIT: CAPITAL / SERVICE Q1 2025 VS. Q1 2024 (%) 8,660 +5% 8,314 7,543 6,674 6,700 6,463 Service Capital 5,889 6,031 44% (40%) 56% (60%) 39% 38% 41
Slide 14: Financial Performance Q1 2025
02 FINANCIAL PERFORMANCE Q1 2025 14
Slide 15: EBITDA – Net Income Bridge Q1 2025
EBITDA – NET INCOME BRIDGE Q1 2025 in MEUR 184.7 (194.0)* Slightly higher IFRS3 Amortization due to acquisition of LDX Solutions 141.8 -42.9 (152.4)* 126.7 (-41.6)* (139.9)* 120.0 Reduced financial result -15.1 (139.7)* (-12.5)* -6.7 Decrease in interest rates and (-0.2)* gross liquidity 89.2 -30.8
Slide 16: Net Income – Cash Flow Bridge Q1 2025
NET INCOME – CASH FLOW BRIDGE Q1 2025 in MEUR 58.0 (54.1)* -5.0 (-21.4)* Split of total depreciation • +42.9 MEUR depreciation 30.8 0.4 • +15.1 MEUR IFRS 3 amortization (35.6)* (-7.9)* (146.2)* 3.2 -66.0 (11.8)* 89.2 (104.1)* (-37.2)* 73.2 CF from changes in NWC • -44.6 ∆ inventories -37.4 (285.3)*
Slide 17: Cash Flow Development
CASH FLOW DEVELOPMENT OPERATING CASH FLOW 3-YEARS ROLLING AVERAGE OPERATING CASH FLOW 604 567 574 538 in MEUR in MEUR • Typical Net Working 430 Capital fluctuations driven by project 359 346 execution cycle 300 285 268 264 206 227 233 207 • Steady improvement of 186 cash flow generation 155 154 96 r
Slide 18: Strong Financial Position
STRONG FINANCIAL POSITION Liquid funds and Net liquidity in MEUR Changes in Net liquidity Acquisition Schuler: Acquisition Xerium: Q1 2025 VS. FY 2024 600 MEUR 770 MEUR 2,051 1,772 1,838 1,787 • Operating cash flow 1,702 1,719 1,610 73 MEUR 1,517 1,507 1,449 1,434 • Capex, investments (incl. LDX acq
Slide 19: Dividend of 2.60 EUR/share paid in April
DIVIDEND OF 2.60 EUR/SHARE PAID IN APRIL Continuously increasing dividends with current payout ratio of 51.8% 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 39.4 2019 2020 2021 2022 2023 2024 19
Slide 20: ROIC significantly above WACC
ROIC SIGNIFICANTLY ABOVE WACC ROIC significantly above average cost of capital Development ROIC vs WACC 24.3% 22.6% 22.5% 20.0% • Further increase in ROIC in Q1-25 17.2% 16.9% 13.0% • WACC on relatively stable level 12.3% 10.4% 10.1% • ROIC significantly above WACC 8.6% 8.6% 9.0% 8.4% implies signif
Slide 21: Summary - Key Figures Q1 2025
SUMMARY - KEY FIGURES Q1 2025 UNIT Q1 2025 Q1 2024 +/- 2024 Order intake MEUR 2,332.2 1,950.3 20% 8,276.9 Order backlog (as of end of period) MEUR 10,169.8 10,002.7 2% 9,749.9 Revenue MEUR 1,761.3 1,886.4 -7% 8,313.7 • Significant increase in order intake in EBITDA MEUR 184.7 194.0 -5% 887.9 Q1 2025
Slide 22: Update on Business Areas
03 UPDATE ON BUSINESS AREAS 22
Slide 23: Pulp & Paper
PULP & PAPER UNIT Q1 2025 Q1 2024 +/- 2024 Order intake MEUR 974.6 642.5 52% 2,779.8 REVENUE BY REGION Order backlog (as of end of period) MEUR 2,728.8 2,975.0 -8% 2,459.1 Q1 2025 VS. Q1 2024 (%) Revenue MEUR 644.9 832.3 -23% 3,461.1 EBITDA MEUR 84.9 103.2 -18% 457.8 Emerging Europe / markets North
Slide 24: Metals
METALS UNIT Q1 2025 Q1 2024 +/- 2024 Order intake MEUR 345.6 349.1 -1% 1,707.2 REVENUE BY REGION Order backlog (as of end of period) MEUR 1,813.1 1,977.3 -8% 1,965.3 Q1 2025 VS. Q1 2024 (%) Revenue MEUR 411.8 439.5 -6% 1,811.2 Emerging EBITDA MEUR 29.0 30.0 -3% 110.0 Europe / markets 26% (35%) North
Slide 25: Hydropower
HYDROPOWER UNIT Q1 2025 Q1 2024 +/- 2024 Order intake MEUR 568.9 497.6 14% 2,170.5 REVENUE BY REGION Order backlog (as of end of period) MEUR 4,088.5 3,615.3 13% 3,933.7 Q1 2025 VS. Q1 2024 (%) Revenue MEUR 372.8 302.3 23% 1,537.9 EBITDA MEUR 29.8 22.6 32% 121.9 Emerging Europe / markets North Ameri
Slide 26: Environment & Energy
ENVIRONMENT & ENERGY UNIT Q1 2025 Q1 2024 +/- 2024 Order intake MEUR 443.1 461.1 -4% 1,619.4 REVENUE BY REGION Order backlog (as of end of period) MEUR 1,539.4 1,435.1 7% 1,391.8 Q1 2025 VS. Q1 2024 (%) Revenue MEUR 331.8 312.3 6% 1,503.5 EBITDA MEUR 41.0 38.2 7% 198.2 Emerging Europe / markets Nort
Slide 27: Guidance 2025 & Mid-term Targets 2027
04 GUIDANCE 2025 & MID-TERM TARGETS 2027 27
Slide 28: Guidance 2025 confirmed
GUIDANCE 2025 CONFIRMED Broadly stable revenue and comparable EBITA margin (at mid-point, vs 2024) MARKET OUTLOOK 2025 GUIDANCE 2025 • Project activity has picked up across markets Revenue • Improving order backlog • Growing demand for green technologies 8.0 - 8.3 BEUR • Growth and strong margins in
Slide 29: Potential impact of US tariffs
POTENTIAL IMPACT OF US TARIFFS We do not see any adverse impact from global tariffs on our markets yet, hence keeping our financial guidance for 2025 unchanged. ANDRITZ is a truly global supplier with >280 locations in more then 40 countries • The US is among its most important markets, contributing
Slide 30: Mid-term targets 2027 confirmed
MID-TERM TARGETS 2027 CONFIRMED MID-TERM TARGETS 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 BEUR • Mix improvements, selective capacity adjustments, p
Slide 31: Questions?
QUESTIONS?
Slide 32: Revenue target 2027
REVENUE TARGET 2027 Revenue target 2027 Revenue growth 9 to 10 BEUR CAGR 4.5% 9 to 10 BEUR (to mid-point) Incremental growth • Accelerated growth in Service business 8.3 BEUR • Accelerated demand for Base growth Green Products • Large-scale orders • Growth in Capital sales, expansion of Service shar
Slide 33: Comparable EBITA margin targets 2027
COMPARABLE EBITA MARGIN TARGETS 2027 Comparable EBITA margin target range in % (changed from reported EBITA margin previously) PULP & PAPER Target 11-13% METALS 11.1 11.7 11.1 11.0 10.5 10.0 10.0 9.9 Margin Target 6-8% target 2027 5.1 5.5 4.4 3.7 >9% 2.0 0.5 2.0 2017 2018 2019 2020 2021 2022 2023 20