GEA Group (G1A) CMD 2024 summary

Strategic direction and future plans

• Launched Mission 30, targeting organic sales CAGR above 5%, EBITDA margin of 17%-19%, and ROCE above 45% by 2030, with a focus on growth, value, and impact.

• Sales goal set to exceed €7bn by 2030, up from ~€5.4bn in 2024, driven by sustainability, digitalization, and innovation.

• Service business to add nearly €1 billion in sales, aiming for a 40% share of total sales and higher profitability, with service sales rising from ~€2.0bn in 2024 to ~€2.9bn in 2030.

• Sustainable solutions targeted to exceed 60% of sales by 2030, up from 41.5%, with New Food and digitalization as key growth drivers.

• Digital sales expected to triple, reaching over €200m by 2030, and over 35,000 connected machines with an 80% connection rate of serviceable iBase.

Business developments and growth drivers

• Focus on above-average growth in verticals such as New Food, heat pumps, biotech, wastewater treatment, and district heating, with some segments targeting CAGRs of 15–45%.

• New Food order intake projected to exceed €400m per year by 2030, with consumption expected to triple.

• Innovation and digitalization are central, with a goal to achieve a 30% Vitality Index (products <5 years old) and all new products contributing to sustainability and circularity.

• Service model transformation to Performance Partnership, emphasizing availability, productivity, and sustainability for customers, with recurring revenue already achieving >10% growth.

• Consulting services for customer decarbonization are being developed, especially for medium-sized food and beverage companies.

Operational excellence and cost optimization

• Comprehensive COGS program to deliver ~€120m net EBITDA contribution by 2030, focusing on production, procurement, and engineering efficiency.

• G&A ratio targeted to fall below 10% of sales by 2030, driven by ERP rollout, legal entity simplification, and automation, with ~€100m EBITDA improvement potential.

• Global ERP program and process automation initiatives to drive end-to-end efficiency and support growth.

• Localization in APAC and NAM to enhance competitiveness, reduce costs, and lower CO₂ footprint.

• CapEx to normalize at 2.5%-3% of sales post-2025, supporting efficient asset utilization.