ANDRITZ reported higher revenue and earnings in the third quarter of 2026, supported by growth in Hydropower and Pulp & Paper, while order intake in its Pulp & Paper business area declined 24.5% compared with a particularly strong quarter a year earlier.

CEO Joachim Schönbeck said the drop reflects a tough comparison: "We booked three large orders in Q3 last year. But on a year-to-date basis, Q1 to Q3, we are basically on par with the previous year."

Group order intake amounted to €2,166.2 million, slightly below the €2,180.0 million recorded in Q3 2025, but remained above the €2 billion mark for the eighth consecutive quarter. Revenue increased 9.2% to €2,059.6 million, while comparable EBITA rose 10.3% to €184.9 million.

The comparable EBITA margin was 9.0%, compared with 8.9% a year earlier. EBITA increased 10.0% to €175.9 million, while net income rose 14.4% to €127.3 million. Earnings per share increased to €1.29 from €1.14.

The order backlog reached a record €12,729.1 million on September 30, 2026, up 21.7% from the end of 2025. The book-to-bill ratio remained above 1, indicating that order intake continued to exceed revenue during the quarter.

"Revenue and earnings grew significantly in the third quarter, and our order backlog reached a new record high," Schönbeck said. "We will continue to push for further improvements and turn our strong order backlog into profitable growth."

Pulp & Paper revenue increases 8.8%

ANDRITZ's Pulp & Paper business area recorded order intake of €706.8 million in Q3, down 24.5% from €935.7 million in the same period of 2025. The decline followed several large orders booked in the previous-year quarter.

For the first nine months of 2026, order intake totaled €2,593.1 million, down 2.8% from €2,669.0 million a year earlier.

Revenue, however, continued to grow, reaching €767.3 million in Q3, an increase of 8.8%. Nine-month revenue rose 7.4% to €2,237.3 million. Comparable EBITA increased 8.7% to €82.5 million, while the comparable EBITA margin remained unchanged at 10.8%.

China continued to be an important source of demand, with orders for pulp production equipment and recovery boilers reflecting the ongoing trend among Chinese paper producers to integrate backward into pulp production. In South America, ANDRITZ secured an order for a complete paper production line.

Schönbeck said the Chinese paper industry's move toward backward integration remains the main market driver. "The trend of Chinese paper producers integrating backward into pulp making is still what drives the market," he said, adding that ANDRITZ holds a strong position in China and that recent orders have confirmed it.

He expects the trend to continue into 2027. "We expect this to continue into next year, for sure," he said during the earnings call, noting that ANDRITZ has "market shares well above 50%" in this segment and expects to benefit further from the investment trend.

The geographical distribution of Pulp & Paper order intake also shifted during the period. Europe's share declined from 37% to 27%, Schönbeck noted, while China and Asia excluding China recorded increases, reflecting the changing geography of investment in the sector.

Service business offsets weaker investment outlook

While service activities continued to grow, Schönbeck gave a cautious assessment of the broader Pulp & Paper investment environment. "The investment mood in the Pulp & Paper industry is probably not at its best," he said.

He pointed to uncertainty surrounding the Chinese market, tariffs affecting export business and lower customer profitability. Temporary idling of several pulp mills in the Nordic countries was also weighing on service demand, particularly for wear parts and shutdown work.

"We are growing in Pulp & Paper service, but we are also seeing a decline, because the temporary idling of several pulp mills in the Nordics means neither wear parts nor shutdown work is required," he said, "so we are growing in other regions."

Despite these challenges, ANDRITZ's overall service business continued to expand, with service revenue increasing 5% in Q3 and 6% in the first nine months of 2026.

Looking ahead, Schönbeck said the company was not overly optimistic about Pulp & Paper investment over the next six months, but expected service activities and Chinese investment to provide support.

Hydropower and Metals drive order intake

Across the wider group, Hydropower and Metals were the main contributors to order intake growth in Q3.

Hydropower order intake increased 34.2% to €703.9 million, supported by demand for renewable energy generation and modernization of existing hydropower plants. Revenue rose 25.4% to €501.1 million, driven by the execution of the strong order backlog.

Profitability also improved, with management attributing the higher margin to a greater contribution from newer orders and a lower share of legacy projects in revenue.

In Metals, order intake increased 20.8% to €357.4 million, while revenue remained broadly stable at €422.3 million, down 0.4%. ANDRITZ said restructuring measures were beginning to pay off, as low-margin legacy projects phased out and project execution improved.

Environment & Energy recorded a 6.1% decline in order intake to €398.1 million, while revenue increased 3.1% to €368.9 million. Its comparable EBITA margin fell to 7.6% from 10.3% in Q3 2025, reflecting additional project costs and learning-curve effects associated with new green-growth technologies.

Higher cash flow and confirmed guidance

Group operating cash flow increased to €319.8 million in Q3, compared with €144.8 million a year earlier. For the first nine months, operating cash flow reached €610.6 million, up from €313.5 million in the corresponding period of 2025. Net liquidity stood at €844 million at the end of September.

CFO Vanessa Hellwing attributed the improvement mainly to lower working-capital outflows, with customer advances and contract liabilities providing significant support.

ANDRITZ confirmed its full-year 2026 guidance, expecting revenue of €8.0 billion to €8.3 billion and a comparable EBITA margin of 8.7% to 9.1%.

Schönbeck said the upper end of the revenue range was a reasonable assumption. On order intake, he said the company did not expect a quarter-on-quarter decline in Q4, although he declined to provide a specific growth target.

The company also reaffirmed its medium-term targets, announced at its October 2026 Capital Markets Day, of €10 billion in revenue and a comparable EBITA margin of 10% by 2029.

For the first nine months of 2026, group revenue increased 6.5% to €5,900.9 million, while order intake rose 17.1% to €8,085.9 million. Comparable EBITA reached €514.6 million, up 9.3%, with a margin of 8.7%.