Corporate press release
GEA continues successful performance in first quarter of 2025
8 May, 2025
- Order intake increased by 3.7 percent to EUR 1,414.8 million (Q1 2024: EUR 1,365.0 million); organic growth of 3.4 percent
- Revenue growth of 1.4 percent to EUR 1,258.4 million (Q1 2024: EUR 1,241.2 million); organic revenue growth of 0.9 percen
- EBITDA before restructuring expenses increased by 9.8 percent to EUR 198.2 million (Q1 2024: EUR 180.5 million); EBITDA margin before restructuring expenses up accordingly from 14.5 percent in prior-year quarter to 15.8 percent
- Return on capital employed (ROCE) increased to 34.9 percent (Q1 2024: 32.3 percent)
- Outlook for current fiscal year 2025 confirmed
GEA made a successful start to fiscal year 2025. The company once again recorded profitable growth in the first quarter. With increases in order intake and revenue as well as improvements in key profitability and financial indicators, GEA has laid a strong foundation for the full year. The growth in order intake was mainly due to the combination of strong base business (orders under EUR 1 million) and newly awarded large orders (orders over EUR 15 million).
“GEA got off to a strong start in the first quarter. We see that our technologies and innovations for resource and energy efficiency continue to be in demand worldwide. We increased both revenue and order intake. Furthermore, we once again significantly improved profitability,” said CEO Stefan Klebert. “Based on this, we confirm our outlook for the full year.”
Higher order intake and revenue
Order intake in the first quarter of 2025 showed a year-on-year increase of 3.7 percent to EUR 1,414.8 million (Q1 2024: EUR 1,365.0 million). On an organic basis – adjusted for portfolio and exchange rate effects – growth stood at 3.4 percent. The divisions Liquid & Powder Technologies and Farm Technologies contributed most strongly to this. In geographical terms, all regions except for Asia Pacific contributed to this growth. Particularly high order intake growth was recorded in the regions North America, Latin America and DACH & Eastern Europe.
Revenue likewise increased, by 1.4 percent to EUR 1,258.4 million (Q1 2024: EUR 1,241.2 million). Organic growth amounted to 0.9 percent. Additionally, GEA again increased the revenue share of its above-average profitable service business to 41.7 percent (Q1 2024: 38.0 percent).
Increased operating profit and margin
EBITDA before restructuring expenses rose to EUR 198.2 million, equivalent to growth of 9.8 percent (Q1 2024: EUR 180.5 million). The corresponding margin improved from 14.5 percent in the prior-year quarter to 15.8 percent – a new record high for a first quarter at GEA. This development was mainly driven by improved price and cost discipline, optimization initiatives in procurement and production, and the successful implementation of additional efficiency measures to reduce operating costs. Almost all GEA divisions contributed to the first-quarter profitability increase. The larger service share also had a positive impact.
Net income for the period went up by 4.2 percent in the first three months of the year to EUR 94.3 million (Q1 2024: EUR 90.6 million). Earnings per share before restructuring expenses consequently improved to EUR 0.62, compared to EUR 0.59 in the prior-year quarter. Earnings per share increased from EUR 0.53 to EUR 0.57.
Financial structure and liquidity improved
Net liquidity declined to EUR 185.9 million as of March 31, 2025 (March 31, 2024: EUR 218.0 million). This was primarily driven by payments for the latest share buyback program which was successfully completed in mid-April this year. Net working capital improved to EUR 386.1 million as of the reporting date, corresponding to a reduction of 15.6 percent (Q1 2024: EUR 457.1 million). The main driver was the implementation of optimization measures such as inventory reduction. Net working capital as a percentage of revenue, at 7.1 percent, was comfortably at the lower end of the new 7.0 to 9.0 percent target range (March 31, 2024: 8.6 percent). GEA also significantly improved its cash conversion. In the last four quarters, 63 percent of EBITDA before restructuring expenses was converted into the corresponding free cash flow, compared to 48 percent in the prior-year quarter. Starting from an already high level, return on capital employed (ROCE) likewise improved from 32.3 to 34.9 percent.
Outlook for fiscal year 2025 confirmed
For fiscal year 2025, GEA continues to forecast organic revenue growth between 1.0 and 4.0 percent. As before, the company expects an EBITDA margin before restructuring expenses between 15.6 and 16.0 percent and ROCE between 30.0 and 35.0 percent.
| (EUR million) | Q1 2025 | Q1 2024 | Change in % |
|---|---|---|---|
Results of operations |
|||
| Order intake | 1,414.8 |
1,365.0 | 3.7 |
| Book-to-bill ratio | 1.12 |
1.10 |
- |
| Order backlog | 3,238.9 |
3,241.3 |
-0.1 |
| Revenue | 1,258.4 | 1,241.2 | 1.4 |
| Organic revenue growth in % 1 | 0.9 | 2.7 | -189 bps |
| Share of service revenue in % | 41.7 |
38.0 |
365 bps |
| EBITDA before restructuring expenses | 198.2 | 180.5 | 9.8 |
| as % of revenue | 15.8 | 14.5 |
120 bps |
| EBITDA | 190.9 |
172.6 | 10.6 |
| EBITA before restructuring expenses | 163.6 |
145.8 | 12.2 |
| EBITA | 156.3 | 135.6 | 15.2 |
| EBIT before restructuring expenses |
149.7 | 132.9 | 12.7 |
| EBIT | 140.3 | 121.8 | 15.2 |
| Profit for the period | 94.3 | 90.6 | 4.2 |
| ROCE in % | 34.9 | 32.3 | 258 bps |
Financial position |
|||
| Cash flow from operating activities | -17.8 |
-42.2 | 57.9 |
| Cash flow from investing activities | -31.0 | -15.2 | < -100 |
| Free cash flow | -48.8 | -57.5 | 15.1 |
Net assets |
|||
| Net working capital (reporting date) | 386.1 | 457.1 | -15.6 |
| as % of revenue (LTM) | 7.1 | 8.6 | -146 bps |
| Capital employed (reporting date)3 | 1,842.0 | 1,881.5 | -2.1 |
| Equity | 2,410.5 | 2,448.5 |
-1.6 |
| Equity ratio in % | 42.2 | 41.9 | 38 bps |
| Net liquidity (+)/Net debt (-)2 | 185.9 | 218.0 | -14.7 |
GEA Shares |
|||
| Earnings per share (EUR) | 0.57 | 0.53 | 7.8 |
| Earnings per share before restructuring expenses (EUR) | 0.62 | 0.59 | 5.5 |
| Market capitalization (EUR billion; reporting date)3 | 9.6 | 6.8 | 42.6 |
| Employees (FTE; reporting date) | 18,290 | 18,810 | -2.8 |
| Total workforce (FTE; reporting date) | 19,047 | 19,581 | -2.7 |
2) Including lease liabilities of EUR 184.5 million as of March 31, 2025 (March 31, 2024: EUR 167.0 million).
3) The market capitalization includes treasury shares. XETRA closing price as of March 31, 2025: EUR 55.90; XETRA closing price as of March 28, 2024: EUR 39.19.
Matthias Schnettler
About GEA
GEA is one of the world’s largest suppliers of systems and components to the food, beverage and pharmaceutical industries.
GEA is listed on the German MDAX, the European STOXX® Europe 600 Index and is also a constituent of the leading sustainability indices DAX 50 ESG, MSCI Global Sustainability and Dow Jones Best-in-Class World.
