Andritz: Record orders in the boom – Why investors are hesitant!

Andritz: Record orders in the boom – Why investors are hesitant!

The technology group Andritz reported impressive record orders in the first quarter of 2025. The increase in orders is 20 percent compared to the previous year. Particularly noteworthy are the strong growth figures in the important business areas. The Pulp & Paper division recorded a remarkable increase of 51.7 percent, due to the growing demand for sustainable packaging solutions. The hydropower division also benefits from global investments in the energy transition with growth of 14.3 percent.

Andritz has also achieved operational success, including a delivery of equipment for a Turkish hydroelectric power plant and the commissioning of a high-tech recycled fiber line in Austria. A key order to expand the US energy grid in cooperation with GE Vernova rounds off the positive news. Despite the impressive YTD gain of 24.55 percent, the stock is stagnating and is currently 4.6 percent below its 52-week high. The Relative Strength Index (RSI) of 64 indicates slight overheating.

Market dynamics and investor sentiment

The discrepancy between fundamentals and price performance is causing confusion among investors. Several factors could explain the reluctance. On the one hand, the general stock market climate is tense, and on the other hand, there are doubts about the sustainability of the current growth. However, digitalization initiatives represent a potential growth driver, particularly the introduction of new pellet press technology as part of Andritz Smart Die and the increasing demand for Industry 4.0 solutions involving digital optimization tools.

As already shown in the results for the 2024 financial year, Andritz achieved satisfactory results despite a difficult economic environment. Order intake for 2024 amounted to EUR 8.28 billion, a decrease of 3 percent compared to the previous year. There was a downturn in the Pulp & Paper and Metals sectors, while Hydropower grew by 7 percent and Environment & Energy even grew by 8 percent. Sales fell to EUR 8.31 billion, a decrease of 4 percent compared to 2023.

Financial overview and outlook for 2025

What is particularly noticeable is the increase in service revenue, which now accounts for 41 percent of total revenue. Operating profitability improved slightly to an EBITA margin of 8.9 percent. The consolidated result was EUR 496.5 million, which corresponds to a decrease of 1.5 percent compared to the previous year. However, in the fourth quarter of 2024, order intake increased to EUR 2.53 billion, an increase of 24 percent compared to the fourth quarter of 2023. The balance sheet shows that incoming orders increased by 54 percent, particularly in the hydropower segment.

A revival in project activity and a stable development of both sales and operational profitability are expected for 2025. Forecasts indicate sales between EUR 8.0 and 8.3 billion, with an EBITA margin between 8.6 and 9.0 percent. In addition, a dividend of EUR 2.60 per share is targeted for shareholders, an increase compared to 2023.