Ongoing competitiveness measures and an improving revenue mix, driven by the expanding service business, are expected to support profitability. As a result, the comparable EBITA margin is forecasted to be between 8.6 per cent and 9.0 per cent, excluding non-operating items.
“Although we were not able to achieve growth due to the economic headwinds in 2024, we proactively addressed our capacities early on and successfully improved our operating profitability. Despite the challenging environment, we could deliver strong results. I am proud of how our teams continue to adapt and innovate, helping our customers to reach their targets. We are prepared for the challenging conditions to continue but also for emerging opportunities,” said Joachim Schonbeck, chief executive officer (CEO) at Andritz.
Full fiscal 2024 financial performance
The group’s revenue reached €8.31 billion (~$9.06 billion) in fiscal 2024, down 4 per cent year-over-year (YoY). The order intake stood at €8,28 billion, reflecting a 3.2 per cent YoY decline. Profitability remained stable, with an EBITA margin of 8.6 per cent, while EBITA fell slightly to €713.0 million, down 3.9 per cent, Andritz said in a press release.
Operational profitability improved, with the comparable EBITA margin increasing from 8.7 per cent in 2023 to 8.9 per cent in 2024, supported by a better revenue mix and enhanced project execution.
Net income, including non-controlling interests, reached €496.5 million, declining by 1.5 per cent, the second highest in company history, while the net income margin hit a record 6.0 per cent, fuelled by the group’s strong focus on its service business. Service revenue continued to grow across all business areas, increasing to 41 per cent of total revenue. This positive shift in revenue mix, coupled with strong project execution, enabled Andritz to improve its operational profitability (comparable EBITA margin) to 8.9 per cent.
Environment and Energy sector saw an increase of 8.2 per cent YoY, while the absence of major pulp mill orders led to an 8.4 per cent YoY decline in the pulp and paper business.
Performance in fourth quarter (Q4)
In Q4 of 2024, the group reported a significant increase in order intake, reaching €2.53 billion, up 24 per cent YoY, contributing strongly to the full-year figure. Pulp & Paper orders rose by 25 per cent to €812 million.
The group reported revenue of €2.29 billion (~$2.50 billion) in Q4, reflecting a 7 per cent decline YoY. Despite the revenue drop, operational profitability improved, with the comparable EBITA margin rising to 10.2 per cent, up from 10.0 per cent in Q4 2023. Net income for the quarter stood at €154 million, representing a 3 per cent decrease YoY.
ALCHEMPro News Desk (SG)
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