ANDRITZ GROUP: Results for Q2 and H1 2022

At just under 2.2 billion euros, order intake was significantly higher than the good previous year’s reference quarter, the order backlog reached a new record level of just under 9.9 billion euros. Revenue as well as the operating result (EBITA) and profitability (EBITA margin) also increased sharply compared to the previous year.

Joachim Schönbeck, President and CEO of ANDRITZ AG: “We are very pleased with the business development in the first half of 2022. At just under 4.8 billion euros, order intake reached the highest half-year figure in the company's history. All four of our business areas saw good order intake development and succeeded in securing important reference orders. We are also cautiously optimistic regarding the remaining months of the current year and from today’s perspective we expect solid project and investment activity in all our business areas.”

The key financial figures developed as follows:

• In the second quarter of 2022, order intake at 2,179.0 MEUR was well above the previous year’s reference quarter (+17.0% versus Q2 2021: 1,862.3 MEUR). All business areas succeeded in increasing their order intake compared to the previous year’s reference period. Order intake of the ANDRITZ GROUP in the first half of 2022 amounted to 4,767.6 MEUR and increased significantly compared to the reference period of the previous year (+32.7% versus H1 2021: 3,591.8 MEUR).
• Order backlog as of June 30, 2022 amounted to 9,859.1 MEUR, reaching a new record high and increased by 20.7% compared to the end of 2021 (8,165.8 MEUR).
  Revenue reached 1,790.1 MEUR in the second quarter of 2022 and rose by 16.7% compared to the previous year’s reference period (Q2 2021: 1,533.8 MEUR). All four business areas recorded an increase in revenue. Revenue of the ANDRITZ GROUP in the first half of 2022 amounted to 3,317.0 MEUR and increased by 9.6% compared to the previous year’s reference period (H1 2021: 3,027.0 MEUR).
• The EBITA amounted to 150.9 MEUR (Q2 2021: 126.8 MEUR) in the second quarter of 2022 and increased more than revenue. All four business areas were able to increase their earnings compared to the previous year’s reference quarter – with significant increases in some cases. Thus, profitability (EBITA margin) increased to 8.4% (Q2 2021: 8.3%). The EBITA of the ANDRITZ GROUP amounted to 273.2 MEUR in the first half of 2022 and was significantly higher than the level of the previous year’s reference period (+14.9% versus H1 2021: 237.7 MEUR).
• The net income (without non-controlling interests) rose significantly in the second quarter of 2022 to 95.7 MEUR (Q2 2021: 74.6 MEUR). In the first half of 2022, the net income (without non-controlling interests) amounted to 167.2 MEUR (H1 2021: 136.7 MEUR).

OUTLOOK FOR 2022: INCREASE IN REVENUE AND EARNINGS EXPECTED
Economic experts expect a further slowdown in the global economy in the remaining months of 2022 due to the ongoing war in Ukraine, the energy crisis in Europe and the unchanged tense situation in international supply chains. A slowdown is expected for Europe in particular.

In spite of the difficult overall economic conditions, project and investment activity in the industries served by ANDRITZ remains good. ANDRITZ offers a broad product portfolio of sustainable solutions (renewable energy, recycling, biofuels, etc.) that customers need to achieve their own ESG goals. Increased demand from this sector is counteracting the overall economic slowdown.

For 2022 as a whole, ANDRITZ therefore confirms the financial guidance published when the results for the first quarter of 2022 were announced and, from today’s perspective, expects an increase in revenue as well as in EBITA and net income compared to the previous year.