EU and US could reach trade deal this weekend - Reuters
Investing.com -- GEA Group AG (ETR:G1AG) reported first-quarter results that showed soft organic growth in orders and revenue but stronger-than-expected margins and earnings.
Organic order intake rose 3% to €1.415 billion, driven by growth in dairy processing and farming.
Large orders totaled €83 million, down from €230 million in the previous quarter. Revenue increased 1% organically to €1.258 billion, with the slowdown linked to weaker order intake earlier in 2024.
New machine sales declined 4.9% organically, while service revenue rose 10.3%. The service share of total revenue increased to 41.7%, up 3.7 percentage points from a year earlier.
Adjusted EBITDA before restructuring rose to €198 million, 5% above consensus. The margin expanded to 15.8% from 14.5% a year earlier, supported by improved volumes and gross margins despite higher operating costs.
Working capital dropped to €386 million, or 7.1% of sales, at the low end of the company’s guided range. Free cash flow was negative €49 million, a year-over-year improvement.
GEA maintained its 2025 forecast, expecting organic revenue growth of 1% to 4% and an adjusted EBITDA margin of 15.6% to 16.0%. Jefferies said the margin guidance appeared conservative given seasonal trends.
The company expects limited impact from potential U.S. tariffs, citing a mostly local cost structure and planned price increases.