Austria-based technology group Andritz reported strong growth in order intake during the first quarter (Q1) of 2025, marking a nearly 20 per cent year-over-year (YoY) increase. This surge was driven primarily by exceptional performance in the Pulp & Paper segment, which soared 51.7 per cent, and the Hydropower segment, which rose 14.3 per cent YoY.
Despite this growth in new orders, Andritz Q1 2025 performance revealed a decline in group revenue, which fell by 6.6 per cent YoY to €1,761 million (~$1.88 billion). The revenue decline was largely attributed to a 22.5 per cent drop in the Pulp & Paper segment and a 6.3 per cent decrease in the Metals segment, reflecting challenging market conditions throughout 2024. Conversely, the Hydropower segment saw a 23.3 per cent revenue increase, and the Environment & Energy segment grew by 6.2 per cent, both benefiting from the successful execution of a robust order backlog.
In Pulp & Paper, Q1 2025 included significant wins such as major pulp mill contracts from the US and Japan, along with a new agreement for a complete pulp mill in China, demonstrating the continued strength of Andritz’s renewable sector offerings.
The group’s net income declined to €89 million (~$95.2 million), impacted by lower EBITA, a weaker financial result, and slightly higher amortisation costs from recent acquisitions. Comparable EBITA fell by 5.9 per cent YoY to €145 million, but the group maintained stable profitability with the comparable EBITA margin improving slightly to 8.2 per cent, compared to 8.1 per cent in Q1 2024. Operating cash flow dropped to €73 million, mainly due to higher working capital needs for ongoing projects.
In February 2025, Andritz expanded its environmental technology portfolio through the acquisition of LDX Solutions, a US-based provider of emission reduction technologies. This acquisition strengthens Andritz’s presence in the US market and integrates into the Environment & Energy business area.
CEO Joachim Schonbeck expressed satisfaction with Andritz Q1 2025 performance amidst an uncertain economic climate. He highlighted the strong order intake and increased share of the service business as stabilizing factors for revenue and profitability. While global tariffs have not yet impacted operations, the situation is being monitored closely.
Andritz reaffirmed its 2025 guidance, expecting revenue between €8.0 billion and €8.3 billion (~$8.56-$8.88 billion). The company anticipates a comparable EBITA margin of 8.6 to 9.0 per cent, supported by ongoing measures to enhance competitiveness and a favorable revenue mix driven by the expanding service business.
