Andritz AG

For full-year 2025, ANDRITZ reported order intake of EUR 8.9 billion, up 8%; revenue of EUR 7.9 billion, down 5%; comparable EBITA of EUR 698 million with a margin of 8.9% (flat year over year); reported EBITA of EUR 648 million with an 8.2% margin, versus 8.6% last year; and net income of EUR 457 million, or 5.8% margin. Q4 revenue was EUR 2.3 billion, up 3%; Q4 order intake was EUR 2.0 billion; Q4 comparable EBITA was EUR 228 million with a 9.7% margin; and Q4 reported EBITA was EUR 200 million with an 8.5% margin. Operating cash flow was EUR 653 million, up 3%, free cash flow was EUR 383 million, and net liquidity ended at EUR 713 million versus EUR 905 million at end-2024. For 2026, management guided to revenue of EUR 8.0 billion to EUR 8.3 billion and comparable EBITA margin of 8.7% to 9.1%; they also said FX assumptions in the guidance are similar to last year and CapEx should increase.

Joachim Schönbeck emphasized disciplined execution in a cautious investment environment and said the company “came back to growth in order intake” despite geopolitical and market headwinds. He pointed to strength in hydropower and pulp & paper, especially the five complete pulp mill orders in China, while noting metals remains pressured by broader industry weakness and environment & energy has been delayed by regulatory uncertainty and high energy prices. His tone was confident but measured: he repeatedly highlighted backlog, service growth, and margin resilience as evidence that the business is positioned to improve in 2026.

Vanessa Hellwing focused on cash generation, capital allocation, and balance sheet strength. She said operating cash flow reached EUR 653 million, free cash flow was EUR 383 million, M&A cash outflow was EUR 329 million, and net liquidity ended at EUR 713 million; she also noted that the company has a EUR 500 million revolving credit facility. She explained that reported EBITDA margin was 8.2% due to higher nonoperating items, IFRS 3 amortization rose to EUR 65 million from acquisitions, and ROIC declined to just under 18% but remains well above the cost of capital. She also highlighted the proposed dividend of EUR 2.70 per share, a payout ratio of 58%, and said capital allocation remains balanced across CapEx, dividends, and opportunistic M&A or buybacks.

Analysts pressed management on the 2026-2027 revenue bridge, asking how much growth is organic versus M&A and what is needed to reach at least EUR 9 billion in 2027. Management declined to split organic and inorganic guidance, but said the company historically grows roughly 50% organically and 50% through M&A, expects Pulp & Paper order intake to convert to revenue faster than hydropower, and said they are not stepping back from 2027 targets. Questions also focused on Metals and Environment & Energy restructuring, with management estimating 700 to 800 people affected and saying the actions will continue through the second half of 2026. On pricing pressure in pulp & paper, Schönbeck confirmed it is still present, while on backlog and orders he said Q1 could benefit from spillover projects and that a Q4 order slowdown would not necessarily continue.