DÜSSELDORF (dpa-AFX) - Plant engineering company Gea Group is on track to achieve its 2025 targets after growth at the start of the year. Order intake, sales and profits increased, with operating earnings rising surprisingly sharply thanks to the expansion of high-margin service businesses. "On this basis, we are confirming our outlook for the full year," said CEO Stefan Klebert in a statement on Thursday in Düsseldorf. Order intake was particularly strong in North and Latin America, but also in German-speaking countries and Eastern Europe. In Asia, however, the trend was downward. Gea shares, which are listed on the MDax, rose.
The stock rose by up to 2.2 percent to 59.20 euros in the morning, marking a record high. In the current year alone, the share price has thus risen by more than a fifth. The operating margin was better than expected because the services business performed well, wrote JPMorgan analyst Akash Gupta.
Gea was particularly successful in securing orders in the fluid and powder processing sectors, while the milking technology and livestock farming equipment divisions also performed well. The order backlog at the end of the quarter remained virtually stable at 3.24 billion euros. Sales rose by 1.4 percent year-on-year to €1.26 billion in the first three months, while order intake grew more strongly by 3.7 percent to €1.41 billion.
The increase in earnings before interest, taxes, depreciation, and amortization (EBITDA) was surprisingly strong, with Gea increasing this figure by almost ten percent to €198.2 million before restructuring costs. The corresponding margin climbed from 14.5 to 15.8 percent. This is a new record for the company in a first quarter, it said. Almost all divisions contributed to the increase in margins. The higher share of service business also had a positive effect. Net profit improved by 4.2 percent to 94.3 million euros.
Gea manufactures equipment for breweries, centrifugal technology, valves, milking robots, feeding systems, and freeze dryers, supplying industries such as agriculture, food, beverages, and pharmaceuticals. The company name dates back to the dust extraction equipment company that was founded more than 100 years ago.
The US customs policy under President Donald Trump is of little concern to Gea CEO Klebert. According to earlier statements made in March, he believes that the company will be able to pass on any tariffs to its customers. Despite global developments and the debate surrounding US tariffs, the company currently expects to achieve its 2025 targets, it said on Thursday./men/mne/stk
