GEA Group (G1A) Pre-Close Call summary

Executive summary

• Full-year 2024 guidance confirmed, with organic sales growth targeted at 2%-4% and EBITDA margin before restructuring expenses expected between 14.9%-15.2%.

• Return on capital employed before restructuring expenses is projected at 32%-35%.

• Service business and base business remain strong, supporting confidence in H2 order intake.

Trading performance and revenue trends

• Food sector continues to show stable to positive growth, while beverage projects face some delays but secured large orders in Q2.

• Pharma pipeline remains healthy, though investment decisions are slower due to economic conditions.

• Dairy farming sentiment is stable, with high interest rates and regional milk price pressures; dairy processing pipeline is picking up but negotiations are slow.

• Heat pump market continues to grow as expected.

Profitability and margins

• Q3 EBITDA margin before restructuring expenses expected to align with full-year guidance (14.9%-15.2%).

• Gross margin and EBITDA margin trends remain positive, with no significant margin impact expected from FX volatility.

• Cost savings of around EUR 140 million expected for 2024, ahead of the 2026 target.