Andritz presents record numbers

Last Updated: 5. März 2024By

If you have been following my „Closing Bell“ as a regular read, then you know that for many years, I have been closely examining the stock market in Austria. Today, let’s take a look together at a very exciting company from our neighboring country:

The Austrian technology company Andritz recently reported record numbers for the fiscal year 2023. However, the Andritz stock subsequently declined. This is probably due to the fact that the stock had performed very well in the weeks and months prior, skyrocketing from under 45 to over 60 euros from October to February.

Before we dive into the latest numbers and future prospects, let me briefly introduce you to the company Andritz and its business model. The globally operating technology company Andritz develops and distributes high-tech production systems and industrial process solutions.

According to its own statements, Andritz 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 industries (solid-liquid separation, animal feed, and biomass). Andritz currently employs around 30,000 people at 280 locations in more than 80 countries.

A look at the recent record figures Let’s look at the numbers: Andritz achieved new records for revenue, operating profit, and net income for the second year in a row. Specifically, Andritz increased its revenue in fiscal year 2023 by 14.8% to 8.66 billion euros.

Operating profit increased by 14.4% to 741.9 million euros, and the operating profit margin was a solid 8.6%. Net income even increased by 25.3% to 504.3 million euros. The reward for shareholders: the dividend is set to be increased to a generous 2.50 euros per share.

„Offering economic solutions to support the industry in its decarbonization efforts is an integral part of our corporate strategy. We are pleased that these solutions are playing an increasingly important role in our growth,“ says Andritz CEO Joachim Schönbeck.

Positive outlook According to Schönbeck, the increase in order intake in the fourth quarter of 2023 demonstrates Andritz’s resilience in a challenging economic and geopolitical environment. In the full year 2023, order intake remained at a high level of 8.55 billion euros, and the order backlog at the end of the year was comfortable at 9.87 billion euros.

For the current year, the Andritz management expects a „slight increase in revenue and earnings“. With a dividend yield of 4.3% and a price-earnings ratio (P/E) of 11, the stock is still attractively valued from a fundamental perspective. Therefore, it is worth keeping an eye on the stock.