This article first appeared on GuruFocus .
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Order Intake:EUR8.9 billion, up 8% year-on-year.
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Revenue:EUR7.9 billion for the full year, with Q4 revenue at EUR2.3 billion, up 3% from the previous year.
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Order Backlog:Record high of EUR10.5 billion, up 7% from last year.
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EBITA Margin:Comparable EBITA margin stable at 8.9% for the full year; Q4 EBITA margin at 9.7%.
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Net Income:EUR457 million, with a net profit margin of 5.8%.
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Dividend Proposal:EUR2.7 per share, up from EUR2.6, with a payout ratio increase from 52% to 58%.
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Operating Cash Flow:EUR653 million, up 3% from the previous year.
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Free Cash Flow:EUR383 million, slightly below the previous year's EUR399 million.
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Net Liquidity:EUR713 million at year-end, down from EUR905 million the previous year.
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Service Revenue Share:Increased to 44% of total revenue.
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FX Impact:Negative impact of EUR222 million on revenue for the full year.
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Hydropower Revenue Growth:Increased by 12% year-on-year.
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Metals EBITA Margin:Improved to 6.1%, reaching profitability target for 2027.
Release Date: March 05, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Andritz AG ( ADRZF ) reported a strong order intake for the full financial year, driven by significant growth in the Hydropower and Pulp & Paper segments.
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The company maintained a stable comparable EBITA margin despite a slight revenue decline, showcasing effective cost discipline and execution.
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Andritz AG ( ADRZF ) achieved a record high order backlog of EUR10.5 billion, indicating strong future revenue potential.
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The company proposed an increased dividend of EUR2.7 per share, reflecting confidence in its financial stability and commitment to shareholder returns.
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The service business reached a record level, increasing its relative share to 44% of total revenue, highlighting the company's strategic focus on expanding this segment.
Negative Points
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Revenue declined by 5% year-on-year, with only the Hydropower segment showing an increase, indicating challenges in other business areas.
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The Metals segment faced structural issues, with a 13% decline in order intake, reflecting a challenging investment climate in the automotive and steel industries.
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The Environment & Energy segment saw a 3% decline in order intake, with investment decisions delayed due to regulatory uncertainties and high energy prices.
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FX translation had a significant negative impact on revenue, amounting to EUR222 million for the full year, affecting financial performance.
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The company is undergoing restructuring in the Metals and Environment & Energy segments, indicating ongoing challenges and the need for capacity adjustments.
Q & A Highlights
Q: What is the implied organic growth in Andritz AG's 2026 guidance, and what level of organic growth is needed for 2027 to hit the revenue target? A: Joachim Schoenbeck, CEO, explained that the company typically grows 50% organically and 50% through M&A. For 2026, they expect a bit more growth from M&A due to recent acquisitions. The company aims to continue growth in the service side and anticipates a return to a 7% annual growth track record. The capital side growth depends on market conditions, which is why the guidance was given without specific organic growth details.
Q: Are there any signs of optimism in project activity due to the European Commission's Industrial Accelerator Act? A: Joachim Schoenbeck, CEO, noted that while the Act will help customers, leading to potential benefits for Andritz, the automotive and metals markets have been shrinking for three years. The industry is running equipment at high capacity, which may lead to increased market activity. The Act could help protect the European automotive and steel industries.
Q: What are the anticipated CapEx needs for the Hydropower business in 2026, and will it impact total CapEx for the year? A: Joachim Schoenbeck, CEO, stated that the majority of manufacturing CapEx for 2026 will be allocated to Hydropower due to strong demand for turbines and generators. However, this investment will not exceed the company's natural cash flow, and overall CapEx is expected to increase from the previous year's EUR200 million.
Q: Can you provide a bridge for revenue guidance for 2026 and 2027, including M&A effects and expected dynamics? A: Joachim Schoenbeck, CEO, explained that revenue growth is driven by strong order increases in Pulp & Paper and Hydropower. Pulp & Paper orders will convert to revenue more quickly, while Hydropower will build up over time. Metals and Environment & Energy saw declines in order intake, leading to a cautious outlook and capacity adjustments to protect profitability.
Q: How will operating net working capital look in 2026 after acquisitions are fully included, and how would it change with larger projects? A: Vanessa Hellwing, CFO, stated that acquisitions are already fully reflected in net working capital. The percentage might decrease as revenue recognition normalizes. Larger projects typically come with prepayments, positively impacting net working capital.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
