GEA Group (G1A) Pre-Close Call summary

Executive summary

• Guidance for FY2025 confirmed: organic sales growth of 1%-4%, EBITDA margin before restructuring at 15.6%-16.0%, and ROCE between 30%-35%.

• Q1 organic sales growth expected at the lower end of the range, with sales phasing more back-end loaded due to a higher share of large orders in the backlog.

• Order intake pipeline remains promising, but timing of large orders is uncertain; Q4 2024 was exceptionally strong, Q1 2024 was decent.

• No financial debt remains after €100m loan repayment; strong net cash position maintained.

• Share buyback program nearly complete, with 94% executed and shares to be canceled.

Trading performance and revenue trends

• Food and beverage sectors show continued activity; dairy processing is promising, while dairy farming is mixed by region.

• Order intake for 2025 expected to be strong, but large order timing is unpredictable; rolling 12-month view recommended.

• Sales growth in Q1 to be slower, accelerating in the second half due to backlog composition.

• Service business continues steady growth, reaching 39% share in Q4 2024.

Profitability and margins

• EBITDA margin before restructuring in Q1 2024 was 14.5%; improvement expected in Q1 2025.

• Margin improvement targeted for the full year, with no significant one-off effects expected in Q1.

• Gross margin has steadily improved, reflecting successful price increases.