In This Article:
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Order Intake Q3: EUR 1.9 billion, up 6% from Q3 2023.
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Revenue Q3: EUR 2 billion, down 3% year-on-year.
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EBITDA Q3: EUR 174 million, stable year-on-year.
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EBITDA Margin Q3: 8.5%.
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Net Income Q3: EUR 180 million, margin at 5.8%.
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Order Backlog: Decreased by 9% year-on-year.
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Year-to-Date Order Intake: EUR 5.7 billion, down 12% from previous year.
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Year-to-Date Revenue: EUR 6 billion, down 3% from previous year.
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Year-to-Date EBITDA: EUR 507 million, margin at 8.4%.
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Net Liquidity: EUR 815 million.
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Gross Liquidity: EUR 1.347 billion.
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Free Cash Flow: EUR 247 million.
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Return on Invested Capital: Stable above 22%.
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Metals Order Intake Q3: EUR 634 million.
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Hydropower Order Intake Q3: EUR 474 million.
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Pulp and Paper Order Intake Q3: EUR 483 million, down almost 20%.
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Environment and Energy Order Intake Q3: EUR 340 million, down due to missing large green hydrogen order.
Release Date: October 31, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Andritz AG (ADRZF) reported a 6% increase in order intake for Q3 2024 compared to the same period last year, indicating strong demand in certain sectors.
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The company maintained a stable EBITDA margin of 8.4%, demonstrating effective cost management despite challenging market conditions.
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There was a notable increase in the service business, which now constitutes 40% of total revenue, up from 38%, reflecting a strategic shift towards more stable revenue streams.
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The metals segment showed strong order intake in Q3, particularly in metals processing and forming, suggesting potential growth in these areas.
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Andritz AG (ADRZF) is making progress in its ESG targets, with many KPIs already achieved or overachieved ahead of the 2025 targets, showcasing its commitment to sustainability.
Negative Points
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Revenue for Q3 2024 decreased by 3% year-on-year, indicating challenges in converting order intake into revenue.
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The order backlog decreased by 9% year-on-year, reflecting potential future revenue challenges.
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The pulp and paper segment experienced a significant decline in order intake and revenue, down nearly 20%, highlighting sector-specific difficulties.
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The company had to make additional provisions for capacity adjustments, indicating ongoing challenges in aligning production with demand.
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Andritz AG (ADRZF) faces pricing pressure due to market conditions, which may impact its ability to pass on cost increases to customers in the future.
Q & A Highlights
Q: Can you clarify the difference between "stable" and "slightly down" in your guidance? A: Stable typically means within a 1-2% variation, while slightly down suggests a 3% decrease. We do not expect to drop below this level. - Joachim Schoenbeck, CEO