ANDRITZ, the international technology group, reported stable business development in the third quarter of 2024 despite ongoing challenges in the global economic environment. The company’s order intake increased compared to the same period last year, with strong performances in the Hydropower and Metals sectors. However, profitability remained stable, and revenue saw a slight decline, reflecting the difficult market conditions faced by the company in recent months. ANDRITZ’s overall performance in Q3 2024 highlights its ability to adapt to a fluctuating economic landscape while maintaining its competitive edge in key business areas.
During the third quarter, ANDRITZ secured several noteworthy contracts, including orders for an annealing and coating line, along with a cold rolling mill for the production of non-grain oriented electrical steel (NOES). These orders, which support the automotive industry’s transition toward electrification, were a key driver of the company’s positive order intake. In the Hydropower sector, ANDRITZ saw substantial activity with several plant upgrades, including the rehabilitation of the Chenderoh plant in Malaysia. These projects, along with engineering studies for green transition solutions, contributed to the overall growth in order intake.
In line with its commitment to sustainability, ANDRITZ was selected to carry out the front-end engineering design (FEED) for a carbon capture plant in Finland for Westenergy. Additionally, ANDRITZ was chosen by E.ON Hydrogen to perform an engineering study for an electrolyzer plant designed to produce green hydrogen in Germany. These projects reinforce ANDRITZ’s role in driving the green transition across multiple industries, leveraging its technology and expertise in sustainable solutions.
Maintain profitability
CEO Joachim Schönbeck expressed satisfaction with the order intake in Q3, noting that despite a challenging economic environment, the company had managed to maintain profitability. “We are pleased with the order intake in the third quarter and happy to have maintained our profitability despite the decline in revenue,” said Schönbeck. He emphasized that the company’s resilience amid continued market weakness reflects its robust business model and diversified portfolio, which positions ANDRITZ well for future growth.
However, the company acknowledged that the market conditions remain difficult, particularly in the automotive sector, where structural changes have affected its subsidiary Schuler in Germany. As a result, ANDRITZ has initiated capacity adjustments across industries and regions to better align with the ongoing market trends and demand fluctuations. While the company anticipates that the recovery of the market may take some time, it remains committed to adapting its operations to ensure long-term growth and profitability.
Despite the challenges, ANDRITZ’s third-quarter order intake reached EUR 1,903.1 million, representing a 5.5% increase from EUR 1,803.5 million in Q3 2023. However, for the first three quarters of 2024, total order intake declined by 11.8%, amounting to EUR 5,748.5 million, compared to EUR 6,516.0 million during the same period last year. The increase in order intake in the third quarter was primarily driven by Hydropower and Metals, which saw significant growth of 38.1% and 43.7%, respectively. Conversely, the Pulp & Paper and Environment & Energy sectors experienced declines in order intake.
Revenue for the third quarter of 2024 stood at EUR 2,041.5 million, a slight decrease of 3% from EUR 2,104.1 million in Q3 2023. Year-to-date revenue for the first three quarters of 2024 reached EUR 6,028.1 million, down 3% from EUR 6,213.1 million in the same period of 2023. The Environment & Energy sector was the standout performer, showing a 13.5% increase in revenue driven by the execution of a substantial order backlog, while other sectors showed either stable or declining performance.
Operating profit slight decrease
Operating profit (EBITA) for the third quarter was EUR 174.1 million, a slight decrease of 1.3% from EUR 176.4 million in Q3 2023. Despite this, the EBITA margin remained stable at 8.5%, compared to 8.4% in the same period last year. For the first three quarters of 2024, EBITA amounted to EUR 507.1 million, which was nearly unchanged from EUR 509.0 million in 2023. The EBITA margin for the first three quarters also remained strong at 8.4%, compared to 8.2% in the previous year.
Net income for the third quarter of 2024 totaled EUR 118.4 million, reflecting a 5% decrease from EUR 124.6 million in Q3 2023. Year-to-date net income for the first three quarters of 2024 amounted to EUR 342.2 million, a decline of 1.1% compared to EUR 346.1 million in the same period of 2023. While net income decreased slightly, ANDRITZ’s ability to maintain profitability in a challenging environment underscores the company’s operational efficiency and strategic resilience.
With a strong order backlog and a diverse portfolio spanning industries such as Pulp & Paper, Metals, Hydropower, and Environment & Energy, ANDRITZ remains well-positioned to navigate current market conditions. The company’s focus on innovation, sustainability, and long-term profitable growth continues to drive its success across the globe. The company now operate in over 80 countries and more than 280 locations, employs around 30,000 people.