Andritz (ANDR) Q1 2026 earnings summary

Executive summary

• Record order intake of €3.6 billion in Q1 2026, up 54.3% year-over-year, mainly driven by Hydropower and Pulp & Paper, with stable development in Metals and a slight decline in Environment & Energy.

• Revenue grew 1.7% year-over-year to €1,790.6 million, with Hydropower and Pulp & Paper offsetting declines in Metals and Environment & Energy.

• Net income increased 2.9% year-over-year to €91.8 million, maintaining a 5.1% margin.

• Order backlog reached a record €12.4 billion, up 22% year-over-year.

• Service revenue reached an all-time high, now representing 46% of Q1 revenue.

Financial highlights

• Operating cash flow increased 21.6% year-over-year to €89 million; net liquidity at €724 million.

• Free cash flow reached €25 million, moderately above prior year, despite higher CapEx and M&A payments.

• ROIC rose to 19.5%, significantly above WACC, driven by improved NOPAT and lower invested capital.

• Book-to-bill ratio at 2.00, reflecting strong order momentum.

• Capital expenditure rose 28% year-over-year to €64.5 million.

Outlook and guidance

• 2026 revenue guidance confirmed at €8.0–8.3 billion, with comparable EBITA margin between 8.7% and 9.1%.

• Midterm targets for 2027: revenue €9–10 billion, EBITDA/EBITA margin above 9%.

• Backlog conversion to revenue will slow due to higher Hydropower share, as hydro projects have longer execution times.

• Project activity expected to remain high, supported by strong order backlog and demand for green technologies.

• Risks include potential deterioration in macroeconomic/geopolitical environment and FX headwinds.