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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 was driven by a robust order intake, increased dividend, and strong fundamentals. The company's record order backlog and strategic initiatives have positioned it for growth, despite challenges in the Metals and Environment & Energy segments. Additionally, the global demand for centrifugal high-speed separators is expected to drive growth, with the market size projected to reach USD 10.14 Billion by 2035 at a CAGR of 7.3%. This trend is expected to benefit Andritz AG, which is a key player in this market.

1.c. Company Highlights

2. 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.

Publication Date: Mar -06

📋 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.

3. NewsRoom

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Here is Why Growth Investors Should Buy Andritz (ADRZY) Now

Apr -30

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Andritz AG (ADRZF) Q1 2026 Earnings Call Highlights: Record Order Backlog and Strong Service ...

Apr -30

Source:

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3 Global Stocks Estimated To Be Trading At Up To 48.9% Below Intrinsic Value

Apr -22

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European Market Stocks That May Be Trading Below Estimated Intrinsic Value

Apr -22

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European Stocks Estimated To Be Trading Below Intrinsic Value By Up To 49.5%

Apr -20

Source:

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Global Centrifugal High-Speed Separators Market Size/Share Worth USD 10.14 Billion by 2035 at a 7.3% CAGR: Custom Market Insights (Analysis, Outlook, Leaders, Report, Trends, Forecast, Segmentation, Growth Rate, SWOT Analysis)

Apr -09

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Andritz AG (ADRZF) Full Year 2025 Earnings Call Highlights: Record Order Backlog and Strategic ...

Mar -21

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3 European Stocks That May Be Priced Below Their Estimated Value

Feb -19

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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: 6.9/10

Value: 7.0

Growth: 4.8

Quality: 5.6

Yield: 10.0

Momentum: 4.0

Volatility: 10.0

1-Year Total Return ->

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Strabag

A-Score: 6.6/10

Value: 7.5

Growth: 4.7

Quality: 6.5

Yield: 8.1

Momentum: 10.0

Volatility: 3.0

1-Year Total Return ->

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Stock-Card
Andritz

A-Score: 6.2/10

Value: 5.5

Growth: 5.4

Quality: 6.2

Yield: 7.5

Momentum: 6.5

Volatility: 6.3

1-Year Total Return ->

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Stock-Card
Wallenius Wilhelmsen

A-Score: 6.0/10

Value: 10.0

Growth: 8.2

Quality: 6.7

Yield: 6.2

Momentum: 2.5

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: 7.0

Yield: 1.9

Momentum: 6.5

Volatility: 7.7

1-Year Total Return ->

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Stock-Card
Indutrade

A-Score: 4.4/10

Value: 1.7

Growth: 7.4

Quality: 6.3

Yield: 1.9

Momentum: 2.5

Volatility: 6.3

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

72.3$

Current Price

72.3$

Potential

-0.00%

Expected Cash-Flows