However, the overall revenue of the group declined by 6.6 per cent YoY to €1,761 million (~$1.88 billion) as the Pulp & Paper segment saw a revenue decline of 22.5 per cent and Metals revenue went down by 6.3 per cent, reflecting the challenging market conditions throughout 2024.
Andritz has reported an increase of 20 per cent YoY in Q1 2025 order intake, led by strong growth in Pulp & Paper and Hydropower.
However, revenue declined 6.6 per cent to €1,761 million (~$1.88 billion) due to weakness in Pulp & Paper and Metals.
Net income fell to €89 million (~$95.2 million).
Andritz reaffirmed its 2025 guidance and noted no immediate impact from rising global tariffs.
In contrast, Hydropower segment reported 23.3 per cent increase in revenue, while Environment & Energy rose by 6.2 per cent, both benefitting from the execution of a strong order backlog.
In Pulp & Paper, Q1 2025 saw significant project wins, including major pulp mill orders from the US and Japan, as well as a new contract for a complete pulp mill in China, reflecting continued momentum in the renewables sector, Andritz said in a press release.
The net income of the group decreased to €89 million (~$95.2 million) on the back of lower EBITA, a reduced financial result, and slightly higher amortisation resulting from recent acquisitions. The comparable EBITA of €145 million saw a decline of 5.9 per cent in Q1 2025. Despite the drop in absolute earnings, the group’s profitability remained stable, with the comparable EBITA margin holding at 8.2 per cent, slightly up from 8.1 per cent in the same period last year.
The operating cash flow of the group declined to €73 million in Q1 2025, primarily due to an increase in working capital related to ongoing projects.
In February 2025, Andritz acquired LDX Solutions, a North American provider of emission reduction technologies and related services. The acquisition broadens Andritz’s environmental technology portfolio and expands its footprint in the US market. LDX Solutions will be integrated into the Environment & Energy business area, added the release.
“Considering the uncertain economic environment, we are overall satisfied with our business performance in the first quarter. The robust order intake underlines the trust our customers place in our technologies. We are happy that we could further increase the share of our service business to stabilize our revenue and profitability. So far, we have not seen any impact on our business from rising global tariffs, but we are observing this issue closely,” said Joachim Schonbeck, chief executive officer (CEO) at Andritz.
Andritz reaffirmed its 2025 guidance, projecting revenue between €8.0 billion and €8.3 billion (~$8.56-$8.88 billion). Supported by ongoing initiatives to enhance competitiveness and a favourable revenue mix driven by the expanding service business, the company expects its comparable EBITA margin (excluding non-operating items) to range between 8.6 per cent and 9.0 per cent.
Fibre2Fashion News Desk (SG)
