GEA Group sustains profitable growth in Q1 2024 despite market challenges 

GERMANY – GEA Group AG, a prominent player in the industrial and technology sector, has continued its trajectory of profitable growth in the first quarter of 2024, defying the challenges posed by the persistently demanding market environment.  

Despite a decline in order intake, the company managed to achieve a 2.7 percent growth in revenue and a significant one-percentage-point increase in the EBITDA margin, showcasing the resilience of its business model. 

CEO Stefan Klebert expressed satisfaction with the company’s performance, stating, “We are delighted to have started 2024 with very good results. That is remarkable considering the current market environment. This performance reflects the strength of our business model.” 

GEA reported a 13.6 percent decrease in order intake for Q1 2024, dropping to EUR 1,365 million (US$192.87M) from EUR 1,581 million (US$223.42M) in the previous year. Despite this decline, the company maintained profitable growth, underscoring the robustness of its operations. 

While order intake saw a decline, revenue experienced an organic growth of 2.7 percent, settling at EUR 1,241 million (US$175.35M) compared to EUR 1,271 million (US$179.59M) in Q1 2023.  

The increase in revenue was driven notably by several divisions, including Separation & Flow Technologies, Farm Technologies, and Heating & Refrigeration Technologies. 

Furthermore, GEA’s EBITDA before restructuring expenses increased by 5.1 percent year-on-year to EUR 180.5 million (US$25.5M), reflecting an improved EBITDA margin of 14.5 percent. 

The company’s strategic focus remains clear, with the progression of its share buyback program and the overwhelming shareholder approval of its Climate Transition Plan 2040.  

CEO Klebert emphasized, “Plus, we have even achieved a new record by expanding our service share to 38 percent. We are confident overall for the months ahead and confirm our outlook for the current fiscal year.” 

Looking ahead, GEA has confirmed its outlook for fiscal year 2024, expecting organic revenue growth of 2.0 to 4.0 percent and an EBITDA margin before restructuring expenses of 14.5 to 14.8 percent. 

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