ANDRITZ Reports Stable Performance Amidst Challenging Economic Environment in H1 2024

ANDRITZ Reports Stable Performance Amidst Challenging Economic Environment in H1 2024

(IN BRIEF) International technology group ANDRITZ reported a stable performance in the first half of 2024 despite challenging economic conditions. Revenue decreased slightly by 3.0% to €3,986.6 million, while order intake dropped by 18.4% to €3,845.4 million due to fewer major capital investments. However, profitability improved with the EBITA margin rising to 8.4%, and net income remained steady at €223.8 million. Growth in green products and services contributed positively, with significant achievements in the Environment & Energy segment. The acquisition of Procemex further strengthened ANDRITZ’s digitalization efforts in the pulp and paper industry.

(PRESS RELEASE) GRAZ, 25-Jul-2024 — /EuropaWire/ — International technology group ANDRITZ has reported stable business development in the first half of 2024, despite a challenging economic landscape. While revenue saw a slight decrease compared to the previous year, profitability (EBITA margin) improved marginally, and net income remained steady. Order intake declined significantly due to reduced major capital investments in the pulp & paper and metals industries, although services and green products saw continued growth.

Key Highlights:

• Order Intake: Dropped to 1,895.1 MEUR in Q2 2024 (-17.3% YoY) and 3,845.4 MEUR in H1 2024 (-18.4% YoY) due to fewer large capital orders.
• Revenue: Decreased by 2.2% in Q2 2024 to 2,100.2 MEUR and by 3.0% in H1 2024 to 3,986.6 MEUR.
• EBITA: Increased to 180.6 MEUR in Q2 2024 (+3.7% YoY) with an EBITA margin of 8.6%, and slightly rose to 333.0 MEUR in H1 2024 (+0.1% YoY) with an EBITA margin of 8.4%.
• Net Income: Remained stable at 119.7 MEUR in Q2 2024 (+0.6% YoY) and 223.8 MEUR in H1 2024 (+1.0% YoY).
• Order Backlog: Reduced by 1.7% to 9,709.1 MEUR as of June 30, 2024.

Growth in Green Products: The Environment & Energy segment showed significant growth in revenue and order intake. ANDRITZ received a large order for lignin recovery at a Swedish pulp mill, supporting renewable resource use and the circular economy. Additionally, the company secured innovative orders from the Finnish Metsä Group for carbon capture integration and a new type of man-made cellulosic fiber production.

Acquisition: ANDRITZ acquired Procemex in June 2024, enhancing its digitalization portfolio and boosting automation and efficiency in pulp and paper mills.

Outlook: Despite the economic challenges, project activity has picked up in several markets. ANDRITZ confirms its outlook for 2024, expecting stable revenue and profitability, supported by a growing demand for green products and a robust service business. The company is focusing on increasing cost efficiency and adjusting capacities in response to the continued decline in order intake.

CEO Statement: “In view of the challenging economic environment, we are satisfied with our business development in the first half of the year. Thanks to the growth in service business and green products, combined with solid order execution, we were able to maintain our net income at last year’s level and slightly increased our profitability,” said ANDRITZ CEO Joachim Schönbeck.

Overall, ANDRITZ continues to navigate economic challenges effectively, leveraging growth in green products and services to maintain stable financial performance.

ANDRITZ GROUP
International technology group ANDRITZ offers a broad portfolio of innovative plants, equipment, systems, services and digital solutions for a wide range of industries and end markets. Sustainability is an integral part of the company’s business strategy and corporate culture. With its extensive portfolio of sustainable products and solutions, ANDRITZ aims to make the greatest possible contribution to a sustainable future and help its customers achieve their sustainability goals. ANDRITZ is a global market leader in all four of its business areas – Pulp & Paper, Metals, Hydropower and Environment & Energy. Technological leadership and global presence are cornerstones of the group’s strategy, which is focused on long-term profitable growth. The publicly listed group has around 30,000 employees and over 280 locations in more than 80 countries.

Media Contact:

Susan Trast
HEAD OF CORPORATE COMMUNICATIONS & MARKETING
susan.trast@andritz.com

SOURCE: ANDRITZ