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Voith Group reports increase in orders received, profitability and cash flow

Published by , Senior Editor
World Pipelines,

The Voith Group reports that it performed well in the first six months of the current fiscal year 2023/24 (1 October 2023 to 31 March 2024) despite major uncertainties in the markets. The company's focus was on further improving profitability: Voith was able to increase both the operating result and the net income in the reporting period. Net liquidity and orders received also improved.

Voith Group reports increase in orders received, profitability and cash flow

As forecast, Group sales amounted to €2.64 billion, which was slightly lower than in the previous year (€2.75 billion). At €3.62 billion, orders received were significantly higher than in the previous year (€2.95 billion) – in particular due to a major order won by the Group Division Voith Hydro. Accordingly, the orders on hand reached a record level of €8.13 billion as of 31 March 2024 (previous year: €7.02 billion).

The operating result (EBIT)improved again in the first half of the year to €129 million (previous year: €123 million) – as did the net income at €38 million (previous year: €29 million). The cash flow from operating activities (ONCF) showed a clearly positive development and amounted to €159 million, compared to €35 million in the same period of the previous year.

“Voith performed well in the first half of the year despite continued major uncertainties in the markets. In particular, we were able to significantly improve cash flow and profitability. This means that Voith remains in a resilient position both operationally and financially and has the necessary resources to invest in its future,” explains Dr. Toralf Haag, CEO of the Voith Group.

Investments in innovative, future technologies

Voith continues to invest in climate-friendly technologies. In the area of mobility, alternative drive solutions are being moved forward, particularly in the field of hydrogen. In April of this year, “Voith HySTech GmbH” was founded. As an expert in carbon composite materials combined with many years of experience in industry and the automotive sector, Voith has a high level of knowledge in the field of hydrogen tank systems. On this basis, a ready-to-install Plug & Drive hydrogen storage system for heavy-duty vehicles was developed. The integrated 700 bar hydrogen tanks have had the road approval required for marketing in Europe since the end of 2023.

Sustainability as a business model

In January 2024, Voith realigned its climate protection strategy and committed to the Science Based Targets initiative (SBTi). The goal is to make further progress in reducing greenhouse gas emissions. Voith is also committed to the ten globally applicable principles of the Global Compact, which includes the areas of human and labour rights, diversity, and anti-corruption.

“Voith’s Corporate Board of Management is committed to continuing to make sustainability the basis for strategic decisions and to consistently drive forward our sustainability activities worldwide,” says Dr. Toralf Haag.

Good developments in the three Group Divisions of the Voith Group

In the first six months, the Group Division Hydro recorded an increase in sales of 4% compared to the previous year at €587 million. Orders received rose to €1.51 billion resulting from a major order in West Africa. At €6 million, the operating result was stable, but not yet satisfactory.

With sales of €1.04 billion, the Group Division Paper recorded a year-on-year decline (previous year: €1.18 billion). Orders received fell to €1.04 billion in the same period (previous year: €1.26 billion). The operating result remained stable and amounted to €76 million (previous year: €77 million).

The Group Division Turbo increased its operating result to €48 million (previous year: €33 million). Sales amounted to €977 million (up 2%), while orders received fell slightly to €1.03 billion (previous year: €1.05 billion).

Outlook: Voith expects an increase in orders received and profitability for the remaining fiscal year

In the second half of the current fiscal year 2023/24, Voith expects volatile markets and a global economy that will continue to be characterised by high interest rates and low economic growth. Nevertheless, Voith expects to achieve its targets for the fiscal year and is sticking to its targets for orders received, sales and earnings.

About the Voith Group

The Voith Group is a global technology company. With its broad portfolio of systems, products, services and digital applications, Voith sets standards in the markets of energy, paper, raw materials and transport & automotive. Founded in 1867, Voith today has around 22 000 employees, sales of € 5.5 billion and locations in over 60 countries worldwide and is thus one of the largest family-owned companies in Europe.

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