Andritz has presented strong figures.

Last Updated: 6. November 2023By

Recently, during my analyst tour through Austria, I presented some exciting companies from our neighboring country here in the „Schlussgong“. Today, with the plant builder Andritz, another company from Austria follows that you can take a closer look at, as it is currently attractively valued and has won the first orders in the new hydrogen sector.

Before I go into the latest figures from Andritz and some new orders, I will briefly introduce you to the business model. The internationally active technology company Andritz develops and sells high-tech production systems and industrial process solutions.

According to Andritz, it is one of the world’s leading suppliers of custom-made plants, systems and services for the pulp and paper industry, the steel industry, hydropower plants and other specialized industrial sectors (solid-liquid separation, animal feed and biomass). Andritz currently employs 29,900 people at 280 locations in more than 40 countries.

A look at the most recent figures Let’s take a look at the numbers: Andritz was able to increase turnover in the 3rd quarter by 11.3% to just over 2.1 billion euros. Positively in this context is that all business areas recorded a significant increase in turnover year-on-year. In the months of January to September, turnover even increased by 19.3% to just over 6.2 billion euros.

EBITDA (that is, operating profit without taking into account interest, taxes and depreciation) increased in the 3rd quarter by 11.6% to 217.5 million euros. In the nine-month period, EBITDA increased by 13.6% to 632.8 million euros. Net profit in the 3rd quarter even increased by 26.6% to 124.6 million euros. In the months of January to September, it rose by 31.9% to 346.1 million euros.

First hydrogen orders won The further prospects are also positive: After the 2nd quarter of this year saw an engineering contract mark an entry into the future market for green hydrogen, Andritz was able to record the first order for a complete system in this exciting area in the 3rd quarter.

The German steel company Salzgitter commissioned the Austrians as part of its sustainability program to supply one of the largest plants in Europe for the production of green hydrogen.

The Andritz share rose by around 10% in the days after the announcement of the figures, but is still attractively valued. Baader Bank analysts reaffirmed their buy recommendation with a target price of 75 euros in their initial reaction.

Given the mixed global economic outlook, I would set a slightly lower target price, but would still consider the Andritz share to be worth buying, as the good prospects are still not sufficiently reflected in the share price.