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1. Company Snapshot

1.a. Company Description

Andritz AG provides plants, equipment, and services for pulp and paper industry, metalworking and steel industries, hydropower stations, and solid/liquid separation in the municipal and industrial sectors.It operates through four segments: Pulp & Paper, Metals, Hydro, and Separation.The Pulp & Paper segment supplies technology, automation, and service solutions to produce pulp, paper, board, and tissue; boilers for power generation; flue gas cleaning systems; plants to produce nonwovens and panelboards; and recycling and shredding solutions for various waste materials.


The Metals segment provides technologies, plants, and digital solutions, including automation and software solutions, and process know-how and services; and solutions for the production and processing of flat products and welding systems, as well as services for the metals processing industry.The Hydro segment supplies electromechanical equipment and services for hydropower plants; and pumps for irrigation, water supply, and flood control, as well as offers turbo generators.The Separation segment offers mechanical and thermal technologies, as well as services and related automation solutions for solid/liquid separation to serve chemical, environmental, food, mining, and minerals industries; and technologies and services for the production of animal feed and biomass pellets.


In addition, it serves to carbon steel, stainless steel, aluminum, and solution for automotive industries.It operates primarily in Europe, North America, South America, and China and rest of Asia.The company was founded in 1852 and is headquartered in Graz, Austria.

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1.b. Last Insights on ANDR

Andritz AG's recent performance has been positively driven by a strong order intake, as highlighted in its Q3 2025 earnings call. The company's robust order backlog and sustainability milestones have positioned it well despite revenue decline and liquidity pressures. Additionally, Andritz has been identified as one of the European stocks that investors might be undervaluing by up to 49.9%, presenting a potential opportunity for capital appreciation. Its ability to provide consistent income through dividends also makes it an attractive option for investors seeking reliable income streams.

1.c. Company Highlights

2. ANDRITZ's Q3 2025 Earnings: Mixed Performance Amidst Strong Order Intake

ANDRITZ reported a mixed financial performance in Q3 2025, with revenue dropping 8% to EUR 5.5 billion due to foreign exchange translation impact and project delays. However, the comparable EBITA margin remained stable at 8.5%, while the reported EBITA margin dropped to 8.1% due to restructuring costs. Net income was stable at 5.5% or EUR 303 million. Earnings per share (EPS) came in at EUR 1.14, below analyst estimates of EUR 1.66.

Publication Date: Nov -14

📋 Highlights
  • Order Intake Growth: Surged 20% to EUR 6.9 billion in Q3 2025, driven by strong demand in Pulp & Paper (+94%), Hydropower (+50%), and Environment & Energy (+25%).
  • Revenue Decline: Fell 8% to EUR 5.5 billion due to foreign exchange impacts and project delays, overshadowing improved project execution.
  • Service Revenue Expansion: Rose to 44% of total revenue in Q1-Q3 2025, supported by strategic M&A and growth in Hydropower and Environment & Energy sectors.
  • Free Cash Flow Drop: Slipped to EUR 150 million in Q3 2025 (vs. EUR 248 million in 2024) due to higher CapEx and working capital outflows.
  • Acquisition Activity: Surged to EUR 300 million in 2025 (vs. EUR 61 million in 2024), strengthening local footprint and service capabilities across key markets.

Segment Performance

The company's business areas showed varied performances. Pulp & Paper saw a strong order intake, increasing by 94%, but revenue was down due to early project execution stages. Hydropower experienced significant growth in order intake, revenue, and profitability, driven by demand for renewable energy and grid stability. Metals faced challenging market conditions, with a significant drop in order intake, but restructuring efforts are showing positive effects. Joachim Schönbeck mentioned that the Hydro business is a strong driver with several large projects underway and under negotiation, expecting larger orders for next year.

Order Intake and Backlog

Order intake increased by 20% to EUR 6.9 billion, and the order backlog rose by 15% to EUR 10.8 billion. The book-to-bill ratio has been above 1 for the last four consecutive quarters, indicating a strong pipeline of future revenue. The company's service business has seen good development, with revenue growing to 44% of total revenue in Q1-Q3.

Valuation and Outlook

ANDRITZ's valuation metrics indicate a relatively attractive position, with a P/E Ratio of 13.51, P/B Ratio of 2.89, and EV/EBITDA of 6.87. The company's ROIC has declined to just under 19% due to organic EBITA decline and the impact of recent acquisitions. Analysts estimate next year's revenue growth at 9.4%. ANDRITZ confirms its guidance for 2025, expecting total revenue at the low end of EUR 8 billion and comparable EBITDA margin within the target range.

Cash Flow and Liquidity

The company's free cash flow was EUR 150 million, down from EUR 248 million last year, due to higher CapEx and cash outflows from net working capital. Operating cash flow was EUR 145 million in Q3 and EUR 314 million for the first 9 months, with a gradual improvement quarter-by-quarter. Net liquidity decreased from EUR 905 million at the end of 2024 to EUR 413 million by September 2025, primarily due to purchase price payments for acquisitions and dividend payments.

3. NewsRoom

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Exploring Andritz (WBAG:ANDR) Valuation After Recent Share Price Softness

Nov -30

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Does the Recent 5% Dip Signal Opportunity for Andritz Shares in 2025?

Nov -30

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Is Andritz (ADRZY) Stock Outpacing Its Industrial Products Peers This Year?

Nov -17

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EnviroGold Global Strengthens Leadership Team with Appointment of Chief Technology Officer and Project Manager to Drive NVRO Process™ Commercialization

Nov -10

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Top 3 European Dividend Stocks To Consider

Nov -06

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Babcock & Wilcox Enterprises Shares Increase After Deal With Applied Digital, Sale of Subsidiary

Nov -05

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Andritz AG (ADRZF) Q3 2025 Earnings Call Highlights: Strong Order Intake Amid Revenue Decline

Nov -05

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European Stocks That Investors Might Be Undervaluing By Up To 49.9%

Nov -03

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.76%)

6. Segments

Pulp & Paper

Expected Growth: 5%

Andritz AG's Pulp & Paper segment growth is driven by increasing demand for sustainable packaging, rising e-commerce, and growing need for hygiene products. Additionally, the company's focus on innovative technologies, such as digitalization and automation, enhances operational efficiency and reduces costs, further boosting growth.

Metals

Expected Growth: 6%

Andritz AG's Metals segment growth is driven by increasing demand for metals in electric vehicle production, infrastructure development, and renewable energy systems. Additionally, the company's focus on digitalization, automation, and sustainability solutions enhances its competitive edge, leading to a 6% growth rate.

Hydro

Expected Growth: 4%

Andritz AG's Hydro segment growth is driven by increasing global demand for renewable energy, government incentives for hydroelectric power, and the company's strong market position in the hydroelectric equipment industry. Additionally, the company's focus on R&D and innovation, as well as its strategic acquisitions, contribute to its growth.

Separation

Expected Growth: 3%

The separation from Andritz AG drove 3% growth, fueled by increased focus on core business, improved operational efficiency, and strategic investments in digitalization and sustainability. Additionally, the spin-off enabled the company to redirect resources towards high-growth areas, such as renewable energy and recycling, further boosting revenue.

7. Detailed Products

Pulp and Paper Technologies

Andritz AG provides a comprehensive range of technologies and services for the pulp and paper industry, including pulp production, paper and board production, and recycling.

Hydro Power Plants

Andritz AG designs and supplies hydroelectric power plants, including turbines, generators, and control systems.

Metal Forming Technologies

Andritz AG offers a range of metal forming technologies, including rolling, forging, and machining, for the production of metal products.

Separation Technologies

Andritz AG provides separation technologies, including centrifuges, filters, and dryers, for various industries.

Pumps and Valves

Andritz AG designs and manufactures pumps and valves for various industries, including oil and gas, chemical, and power generation.

Service and Upgrades

Andritz AG offers a range of services, including maintenance, repair, and upgrades, for its products and systems.

8. Andritz AG's Porter Forces

Forces Ranking

Threat Of Substitutes

Andritz AG operates in a capital-intensive industry, and the threat of substitutes is moderate due to the high costs associated with switching to alternative products or services.

Bargaining Power Of Customers

Andritz AG's customers are largely industrial companies and governments, which have limited bargaining power due to their dependence on the company's specialized products and services.

Bargaining Power Of Suppliers

Andritz AG relies on a diverse supplier base, which reduces the bargaining power of individual suppliers. However, the company's dependence on certain critical components and raw materials exposes it to supplier risks.

Threat Of New Entrants

The capital-intensive nature of Andritz AG's industry, combined with the need for specialized expertise and technology, creates significant barriers to entry for new competitors.

Intensity Of Rivalry

Andritz AG operates in a highly competitive industry, with several established players competing for market share. The company's focus on innovation and customer relationships helps it to maintain its market position.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 34.41%
Debt Cost 5.84%
Equity Weight 65.59%
Equity Cost 9.56%
WACC 8.28%
Leverage 52.47%

11. Quality Control: Andritz AG passed 5 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Logista

A-Score: 7.4/10

Value: 7.0

Growth: 5.9

Quality: 5.8

Yield: 10.0

Momentum: 6.0

Volatility: 10.0

1-Year Total Return ->

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Stock-Card
Strabag

A-Score: 6.6/10

Value: 8.1

Growth: 4.7

Quality: 6.2

Yield: 8.1

Momentum: 10.0

Volatility: 2.7

1-Year Total Return ->

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Stock-Card
Andritz

A-Score: 5.9/10

Value: 5.8

Growth: 5.4

Quality: 6.2

Yield: 7.5

Momentum: 4.0

Volatility: 6.7

1-Year Total Return ->

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Stock-Card
Wallenius Wilhelmsen

A-Score: 5.8/10

Value: 9.2

Growth: 8.2

Quality: 7.9

Yield: 6.2

Momentum: 1.0

Volatility: 2.3

1-Year Total Return ->

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Stock-Card
Diploma

A-Score: 5.2/10

Value: 0.2

Growth: 7.8

Quality: 6.7

Yield: 2.5

Momentum: 8.0

Volatility: 6.0

1-Year Total Return ->

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Stock-Card
Indutrade

A-Score: 4.0/10

Value: 1.8

Growth: 7.4

Quality: 6.2

Yield: 1.2

Momentum: 1.5

Volatility: 6.0

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

65.1$

Current Price

65.1$

Potential

-0.00%

Expected Cash-Flows