In comparison to the first quarter of 2024, the international technology group ANDRITZ had an almost 20% increase in order intake during the first quarter of 2025. Due to significant orders in the pulp and renewables industries, the second half of 2024’s favorable trend persisted. Revenue fell 6% even though order intake rose and profitability (similar EBITA margin) stayed steady at 8.2% (Q1 2024: 8.1%). When compared to the first quarter of 2024, net income dropped by 14%.
Growth in renewable energy, with significant orders coming from Asia and the USA
Business divisions Pulp and Paper (+51.7%) and Hydropower (+14.3%) were major contributors to the first quarter’s rise in orders received: Along with another project award for a full pulp mill from China, Pulp & Paper’s order intake in Q1 2025 includes significant pulp mill orders from the USA and Japan. Global demand for power plant modifications and grid stability has been driven by the continuous transition to renewable energy in the hydropower industry. Environment & Energy witnessed a 3.9% drop in order intake compared to the record-breaking first quarter of the previous year, while the Metals business area saw a flat order intake of -1.0 %.
Diverse revenue development
Revenue for the Group came to 1,761 MEUR, a 6.6% drop from 2024’s first quarter. The negative order intake in 2024 was reflected in the reduction of revenue in the Pulp and Paper (-22.5%) and Metals (-6.3%) business categories, while revenue in Environment and Energy (+6.2%) and Hydropower (+23.3%) increased.
Complementary learning
The group’s environmental technology offering and market position in the US were further strengthened in February 2025 when ANDRITZ acquired LDX Solutions, a prominent supplier of emission reduction technologies and associated services in the North American industrial market. The Environment & Energy business sector is where LDX Solutions will be reported.
ANDRITZ CEO Joachim Schönbeck described, “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 stabilise 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.”
More specific outcomes from the first quarter of 2025:
With an order intake of 2,332 MEUR, it was 19.6% more than the level of the reference period from the prior year (Q1 2024: 1,950 MEUR). Pulp and Paper and Hydropower orders, which totaled 975 MEUR (+51.7%) and 569 MEUR (+14.3%), respectively, were the main drivers of this. Order intake fell 3.9% in Environment & Energy compared to the high level of Q1 2024, when a 30.5% growth was noted. Metals’ order intake was nearly unchanged from the previous year (-1.0%). The order backlog as of March 31, 2025, amounted to 10,170 MEUR and has thus increased by 4.3% compared to the end of 2024 (December 31, 2024: 9,750 MEUR).
The processing of the substantial order backlog allowed the Hydropower (+23.3%) and Environment and Energy (+6.2%) business areas to grow their revenues, despite the overall revenue declining by 6.6% to 1,761 MEUR (Q1 2024: 1,886 MEUR). The unfavorable market environment in 2024 was reflected in the reduction in revenue in the Metals (-6.3%) and Pulp and Paper (-22.5%) business categories.
In the first quarter of 2025, the comparable EBITA was 145 MEUR (down 5.9% from Q1 2024, when it was 154 MEUR). The Group’s comparable EBITA margin, or profitability, stayed steady at 8.2% (Q1 2024: 8.1%). A lower EBITA, a worsened financial result, and somewhat greater amortization from recent acquisitions caused net income (including non-controlling interests) to drop to 89 MEUR (Q1 2024: 104 MEUR). Compared to Q1 2024 (285 MEUR), operating cash flow decreased to 73 MEUR, mostly as a result of a project-related increase in working capital.
ANDRITZ affirms its 2025 guidance: The estimated revenue ranges from 8.0 billion to 8.3 billion euros. The comparable EBITA margin is anticipated to be between 8.6% and 9.0% (excluding non-operating expenses) based on the continuous efforts to boost competitiveness and enhancements in the revenue mix brought about by the expanding service business.
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