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Andritz: ANDRITZ's FY2025 Earnings: A Resilient Performance Amidst a Challenging Landscape

ANDRITZ reported a revenue decline to EUR 7.9 billion in FY2025, slightly below expectations, while the comparable EBITA margin remained stable at 10.6%, within the company's target range. Earnings per share (EPS) came in at EUR 1.14, significantly lower than the estimated EUR 1.66. The company's operating cash flow remained strong, reaching EUR 653 million, a 3% increase from the previous year. The free cash flow was EUR 383 million, slightly below the previous year's EUR 399 million, due to higher capital expenditures.

ANDR.VI

EUR 67.45

0.6%

A-Score: 6.2/10

Publication date: March 5, 2026

Full Report

Author: Analystock.ai

📋 Highlights
  • Revenue and EBITA Performance: Revenue declined slightly, but EBITA margin remained stable at 8.2%, supported by disciplined execution and cost reductions, despite a EUR 65 million increase in IFRS 3 amortization.
  • Order Intake and Backlog Strength: Full-year order intake grew with a book-to-bill ratio of 1.13, and order backlog reached a record EUR 10.5 billion, up 7% year-on-year.
  • Hydropower Growth: Hydropower order intake surged 16%, revenue rose 12%, and EBITA margin reached 6.8%, driven by strong global renewable energy demand.
  • Dividend Increase: Proposed dividend raised to EUR 2.7 per share (up 3.8%), with payout ratio increasing to 58% from 52% in 2024.

Segmental Performance

The company's segmental performance was mixed, with Hydropower and Pulp & Paper driving order intake growth, while Environment & Energy saw a decline due to postponed investment decisions. The Hydropower segment reported a 16% increase in order intake and a 12% rise in revenue, with an EBITA margin expansion to 6.8%. The Metals segment coped well with the challenging industry situation, maintaining customer trust. As noted by the CEO, "We saw strong demand worldwide on renewable energy and grew order intake by 16%, revenue by 12%, and EBITA margin to 6.8%."

Outlook and Guidance

ANDRITZ expects revenue growth in FY2026, supported by a record order backlog, with guidance between EUR 8.0 billion and EUR 8.3 billion. The comparable EBITA margin is expected to be between 8.7% and 9.1%. Analysts estimate revenue growth at 6.9% for the next year. The company's restructuring efforts are ongoing, with a focus on improving profitability in Environment & Energy and Metals.

Valuation and Dividend

With a P/E Ratio of 14.68 and a Dividend Yield of 3.78%, ANDRITZ's valuation appears reasonable. The company's ROIC stands at 18%, an industry-leading level, although it has declined from previous levels. The proposed dividend increase to EUR 2.7 per share represents a payout ratio of 58%. The company's strong financial position, with sufficient liquidity and a net debt to EBITDA ratio of -0.1, supports its ability to return value to shareholders.

Andritz's A-Score