Andritz Shares Bolstered by Record Order Backlog

Andritz sees 2025 revenue decline but a record-high order backlog. The service division, at 44% of revenue, provides stability, while hydropower drives new order growth.

The engineering group Andritz has presented a mixed outlook for 2025, characterized by declining revenues but a record-high order book. The company's robust service division is providing crucial operational stability, offsetting challenges elsewhere.

Service Business Delivers Operational Anchor

A key highlight from the past fiscal year was the performance of the service business, where revenue reached an all-time high of 3.5 billion euros. Accounting for 44 percent of total group revenue, this high-margin segment proved to be a reliable earnings pillar. It played a major role in maintaining the comparable EBITA margin at 8.9 percent, unchanged from the prior year. In contrast, total group revenue contracted by five percent to 7.9 billion euros. Management attributed this decline primarily to negative currency translation effects stemming from a strong euro.

Hydropower Drives New Order Growth

The company reported a significant eight percent increase in order intake, which advanced to 8.9 billion euros. The Hydropower segment was the strongest growth contributor, posting a 12 percent revenue increase. This performance was fueled by global investments in renewable energy and power grid infrastructure. By year-end, the group-wide order backlog had swelled to a record 10.5 billion euros, providing substantial visibility for future revenue.

Looking ahead to 2026, the leadership team anticipates a recovery in its core markets of pulp, paper, and metal. The company forecasts group revenue to rise to between 8.0 and 8.3 billion euros, accompanied by an EBITA margin in the range of 8.7 to 9.1 percent.

Despite this solid operational foundation, the stock market has yet to fully reflect the positive developments. Shares closed at 62.25 euros on Thursday, marking a decline of 6.74 percent since the start of the year. Nevertheless, the overflowing order books and recent acquisitions to bolster service capabilities create a robust platform for the coming months. As long as the high-margin service business maintains its elevated performance, Andritz retains an effective buffer against volatility in its traditional plant engineering operations.