GEA Reports Profit Growth, Raises Full-Year Outlook Amid Strong Q3 Performance
GEA Group AG continued on its growth trajectory in Q3, reporting strong financial results and raising its full-year earnings outlook. Organic order intake rose 6.6% year-on-year to €1.3 billion, while revenue increased by 1.4% to €1.35 billion.
Earnings before interest, taxes, depreciation, and amortization (EBITDA), excluding restructuring expenses, climbed 4.9% to €217.1 million, pushing the EBITDA margin up to 16.1%.
In light of strong Q3 performance, GEA revised its 2024 EBITDA margin forecast upward to a range of 15.4% to 15.6%, up from an earlier estimate of 14.9% to 15.2%.
“With a strong third quarter, we are confirming our successful trajectory,” said CEO Stefan Klebert. “This growth is supported by a healthy order intake and profitability improvements across all divisions.”
Order Intake and Service Business Drive Growth
Q3 order intake rose 4.3% to €1.3 billion, driven by core business orders and a €58.6 million contract for GEA’s Liquid & Powder Technologies division. Organic growth reached 6.6% despite currency translation impacts, which moderated to €28.7 million from €95.6 million a year ago. GEA’s profitable service business grew across all divisions, with service revenue increasing to 39.2% of total revenue, up from 36.2% in Q3 2023.
Revenue was nearly stable at €1.35 billion, with organic growth at 1.4%, largely contributed by the Separation & Flow Technologies, Food & Healthcare Technologies, and Heating & Refrigeration Technologies divisions. The food, beverage, and pharmaceutical sectors showed particularly strong demand.
Improved Profit Margins and Strategic Investment
GEA’s EBITDA margin rose by 0.8 percentage points to 16.1%, driven by increased gross profit. Profit for the period, however, fell by 7.3% to €112 million, impacted by a €3.3 million after-tax loss from discontinued operations. Earnings per share before restructuring expenses remained steady at €0.72, while overall earnings per share declined slightly to €0.67.
Financial Position and Share Buyback Progress
GEA’s net liquidity reached €65.9 million as of September 30, down from €232.9 million a year prior, primarily due to cash outflows from a share buyback program. The average capital employed rose by 5% to €1.8 billion, mainly driven by an increase in non-current assets and net working capital. The return on capital employed (ROCE) remained high but edged down to 32.3% from 33.9%.
The second tranche of GEA’s €400 million share buyback program launched in June, with 1.2 million shares repurchased in Q3 for €48.9 million. To date, 6.2 million shares have been bought back since the program began in November 2023.
For the first nine months of 2024, GEA’s order intake dropped 6% to €3.95 billion, while revenue declined slightly by 1.3% to €3.91 billion. However, organic revenue grew by 1.9%, and EBITDA before restructuring expenses rose 4.9% to €598.2 million, bringing the margin to 15.3%.
In light of strong Q3 performance, GEA revised its 2024 EBITDA margin forecast upward to a range of 15.4% to 15.6%, up from an earlier estimate of 14.9% to 15.2%.
“With a strong third quarter, we are confirming our successful trajectory,” said CEO Stefan Klebert. “This growth is supported by a healthy order intake and profitability improvements across all divisions.”
Order Intake and Service Business Drive Growth
Q3 order intake rose 4.3% to €1.3 billion, driven by core business orders and a €58.6 million contract for GEA’s Liquid & Powder Technologies division. Organic growth reached 6.6% despite currency translation impacts, which moderated to €28.7 million from €95.6 million a year ago. GEA’s profitable service business grew across all divisions, with service revenue increasing to 39.2% of total revenue, up from 36.2% in Q3 2023.
Revenue was nearly stable at €1.35 billion, with organic growth at 1.4%, largely contributed by the Separation & Flow Technologies, Food & Healthcare Technologies, and Heating & Refrigeration Technologies divisions. The food, beverage, and pharmaceutical sectors showed particularly strong demand.
Improved Profit Margins and Strategic Investment
GEA’s EBITDA margin rose by 0.8 percentage points to 16.1%, driven by increased gross profit. Profit for the period, however, fell by 7.3% to €112 million, impacted by a €3.3 million after-tax loss from discontinued operations. Earnings per share before restructuring expenses remained steady at €0.72, while overall earnings per share declined slightly to €0.67.
Financial Position and Share Buyback Progress
GEA’s net liquidity reached €65.9 million as of September 30, down from €232.9 million a year prior, primarily due to cash outflows from a share buyback program. The average capital employed rose by 5% to €1.8 billion, mainly driven by an increase in non-current assets and net working capital. The return on capital employed (ROCE) remained high but edged down to 32.3% from 33.9%.
The second tranche of GEA’s €400 million share buyback program launched in June, with 1.2 million shares repurchased in Q3 for €48.9 million. To date, 6.2 million shares have been bought back since the program began in November 2023.
For the first nine months of 2024, GEA’s order intake dropped 6% to €3.95 billion, while revenue declined slightly by 1.3% to €3.91 billion. However, organic revenue grew by 1.9%, and EBITDA before restructuring expenses rose 4.9% to €598.2 million, bringing the margin to 15.3%.
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