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Andritz AG (ADRZY) (Q4 2024) Earnings Call Highlights: Record Order Intake and Strategic Growth ...

In This Article:

  • Order Intake Q4 2024: EUR2.5 billion.

  • Revenue Q4 2024: EUR2.3 billion.

  • Order Backlog: EUR9.7 billion.

  • EBITA Margin Q4 2024: 10.2% comparable, 9.0% reported.

  • Net Income Q4 2024: EUR154 million, 6.8% margin.

  • Full Year Order Intake 2024: EUR8.3 billion.

  • Full Year Revenue 2024: EUR8.3 billion.

  • Full Year EBITA 2024: EUR743 million comparable, 8.9% margin; EUR713 million reported, 8.6% margin.

  • Full Year Net Income 2024: EUR497 million, 6% margin.

  • Dividend Per Share: Proposed increase to EUR2.6 per share.

  • Service Revenue Share: 41%, all-time high.

  • Free Cash Flow 2024: EUR399 million.

  • Net Liquidity: Above EUR900 million.

  • Return on Invested Capital: 22%.

  • Guidance 2025 Revenue: EUR8.0 billion to EUR8.3 billion.

  • Guidance 2025 Comparable EBITA Margin: 8.6% to 9%.

Release Date: March 06, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • Andritz AG (ADRZY) reported a record order intake in December 2024, driven by strong performance in the Pulp & Paper and Hydropower sectors.

  • The company achieved a stable EBITA margin with a record net income margin of 6% for the year.

  • Service business revenue reached an all-time high, contributing 41% to total revenue, indicating strong growth in this segment.

  • Andritz AG (ADRZY) made strategic acquisitions to strengthen its digitalization and decarbonization efforts, including acquiring Procemex and investing in HydrogenPro.

  • The company proposed an increase in dividend per share by EUR0.10 to EUR2.6, reflecting confidence in its financial stability and future prospects.

Negative Points

  • There was a slight decrease in overall revenue year-on-year, attributed to subdued market conditions and delayed order intake conversion.

  • The company reported additional provisions for capacity adjustments, particularly in the Metals and Paper segments, impacting reported EBITA.

  • Andritz AG (ADRZY) experienced a negative financial result due to a devaluation issue related to the deconsolidation of its cybersecurity joint venture, Otorio.

  • The company acknowledged challenges in reaching its ESG target of 50% green revenues by 2025, currently at 44%.

  • The guidance for 2025 indicates flat to slightly declining revenue, reflecting cautious market conditions and economic uncertainties.

Q & A Highlights

Q: Can you explain the change in guidance parameters from reported EBITA to adjusted EBITA and any expected restructuring in the coming years? A: Joachim Schoenbeck, CEO: The capacity adjustments have been initiated and announced, with execution ongoing. We expect the majority of these adjustments to be completed in 2025, with full P&L effects visible from 2026 onwards. Currently, no additional restructuring is planned.