Q3 2026 GEA Group AG Pre-Close Earnings Call

October 5, 2026

Operator: Good day, and thank you for standing by. Welcome to the GEA Group AG pre-close call Q3 2026 conference call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you will need to press star 1 on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star 1 again. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker today, Oliver Luckenbach. Please go ahead.

Speaker #2: Good day, and thank you for standing by. Welcome to the GEA Group AG Pre-Close Call Q3 2026 conference call. At this time, all participants are in a listen-only mode.

Speaker #2: After the speaker's presentation, there will be a question-and-answer session. To ask a question during the session, you will need to press star 11 on your telephone; you will then hear an automated message advising your hand is raised.

Speaker #2: To withdraw your question, please press star one-one again. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker today, Oliver Lochenbach.

Speaker #2: Please go ahead.

Speaker #3: Thank you very much, Heidi, and good afternoon, ladies and gentlemen. Welcome to our Q3 2026 Pre-Close Call. My name is Oliver Lochenbach. I'm the Head of GEA's Investor Relations team, and I'm joined by my colleagues Rebecca and Eduard.

Oliver Luckenbach: Thank you very much, Heidi, and good afternoon, ladies and gentlemen. Welcome to our Q3 2026 pre-close call. My name is Oliver Luckenbach. I am the head of GEA's Investor Relations team, and I am joined by my colleagues Rebecca and Eduard. As today's call will contain forward-looking statements, it will be conducted according to our disclaimer. I will not read the disclaimer, but please be aware of the cautionary language that is included in our safe harbor statement, which is part of our presentations you can find on the internet. We will now address certain topics which we also discussed during recent conferences and roadshows, and afterwards, you will have time to ask questions. First topic, our guidance. We confirmed our group guidance for fiscal year 2026, which we raised in July.

Speaker #3: As today’s call will contain forward-looking statements, it will be conducted according to our disclaimer. I will not read the disclaimer, but please be aware of the cautionary language that is included in our Safe Harbor statement, which is part of our presentations you can find on the internet.

Speaker #3: We will now address certain topics, which we also discussed during recent conferences and roadshows. Afterwards, you will have time to ask questions. First topic: our guidance.

Speaker #3: We confirmed our group guidance for fiscal year 2026, which we raised in July. We expect organic sales growth between 6% and 8%, EBITDA margin before restructuring expenses of 17% to 17.4%, and return on capital employed between 36% and 40%.

Oliver Luckenbach: We expect organic sales growth between 6% and 8%, EBITDA margin before restructuring expenses 17% to 17.4%, and return on capital employed between 36% and 40%. Second topic, customer industries. Let me start with food. The business is looking good overall, with projects and sub-industries, like the poultry business, showing strength. On beverage, here the picture is strong, especially on the project side. Dairy processing, the pipeline continues to show activity across both projects and components. There is ongoing good market development in both areas. One of the drivers is the demand for protein-rich products, and we expect this trend to continue for the next 2 years or so. Dairy farming. In terms of the market outlook, we see that the general market sentiment is okay, with ongoing good demand, especially from large farms. Pharma continues to look good. We see good potential for our continuous tablet presses.

Speaker #3: Second topic: customer industries. Let me start with food. The business is looking good overall, with projects and sub-industries like the poultry business showing strength.

Speaker #3: On beverage, here the picture is strong, especially on the project side. Dairy processing, the pipeline continues to show activity across both projects and components.

Speaker #3: There's ongoing good market development in both areas. One of the drivers is the demand for protein-rich products, and we expect this trend to continue for the next two years or so.

Speaker #3: Dairy farming: In terms of the market outlook, we see that the general market sentiment is okay, with ongoing good demand, especially from large farms.

Speaker #3: Pharma continues to look good. We see good potential for our continuous tablet presses. That brings me to the third topic: order intake. We are very confident that 2026 will again be a good year for GEA in terms of order intake, with a growth rate which will ensure the Mission 30 organic sales growth target of more than 5% per annum over the next years.

Oliver Luckenbach: That brings me to the third topic, order intake. We are very confident that 2026 will be again, a good year for GEA in terms of order intake, with a growth rate which will ensure the Mission 30 organic sales growth target of more than 5% per annum over the next years. The pipeline looks very promising. In addition, we see a good baseload business as well. This supports our confidence that we will see good growth in order intake for full year 2026, despite the fact that we are running against very high comps in Q4, where we had an order intake volume of EUR 1.8 billion last year in Q4, including more than EUR 400 million in large orders.

Speaker #3: The pipeline looks very promising, and in addition, we see a good baseload business as well. This supports our confidence that we will see good growth in order intake for the full year 2026, despite the fact that we are running against very high comps in the fourth quarter, where we had an order intake volume of €1.8 billion last year in Q4, including more than €400 million in large orders.

Speaker #3: We had a strong first half, with organic order intake growth of 10.7%, and we see no reason why this trend shouldn't have continued in the third quarter.

Oliver Luckenbach: We had a strong H1 with an organic order intake growth of 10.7%, and we see no reason why this trend shouldn't have held up in Q3. Regarding Q3, in addition to a healthy development in base orders, we have seen several large orders. So orders above EUR 15 million, with a combined volume in the low triple digit million euros in the quarter. Whereas the previous year quarter, so Q3 2025, contained three large orders with a combined volume of EUR 64 million. Topic number four, sales. In H1 2026, we achieved an organic sales growth of 8.2%. For the full year, we are guiding organic sales growth to be between 6% and 8%. Topic number five, EBITDA margin before restructuring expenses.

Speaker #3: Regarding the third quarter, in addition to healthy development in base orders, we have seen several large orders—orders above €15 million—with a combined volume in the low triple-digit millions of euros in the quarter.

Speaker #3: Whereas the previous year quarter saw the third quarter 2025 contain three large orders with a combined volume of €64 million. Topic number four, sales.

Speaker #3: In the first half of 2026, we achieved an organic sales growth of 8.2%. For the full year, we are guiding organic sales growth to be 8%.

Speaker #3: Topic number five: EBITDA margin before restructuring expenses. Our raised EBITDA margin guidance of 17% to 17.4% clearly indicates that we want to make further progress with regard to our profitability in fiscal year 2026.

Oliver Luckenbach: Our raised EBITDA margin guidance of 17% to 17.4% clearly indicates that we want to make further progress with regards to our profitability in fiscal year 2026. After an already good H1 with an EBITDA margin before restructuring expenses of 16.8%, we expect further progress in Q3 2026. Last year's Q3 EBITDA margin was 17.0%. That's it for my side, and I will now pass over to Rebecca.

Speaker #3: After an already good first half, with an EBITDA margin before restructuring expenses of 16.8%, we expect further progress in Q3 2026. Last year's Q3 EBITDA margin was 17.0%.

Speaker #3: That's it from my side, and I will now pass over to Rebecca.

Speaker #2: Thanks, Oliver. Hello, everybody. Let me continue with topic number six, which is our cash flow. So, what to keep in mind for the cash flow in the third quarter.

Rebecca Weigl: Thanks, Oliver. Hello, everybody. Let me continue with topic number six, which is our cash flow. What to keep in mind for the cash flow in Q3. CapEx, just as a reminder, we expect CapEx of around EUR 240 million for the full year 2026. In H1, we had EUR 72 million. As in previous years, we expect CapEx to ramp up in H2. Net working capital to sales. As you know, our target corridor is 7% to 9%. Q3 will most likely be within this corridor. Cash outflow. Let me give you an update on our share buyback, which we started in August this year.

Speaker #2: So, CapEx—just as a reminder—we expect CapEx of around €240 million for the full year 2026, and in H1 we had €72 million.

Speaker #2: So, as in previous years, we expect CapEx to ramp up in the second half of the year. Net working capital to sales: as you know, our target corridor is 7% to 9%.

Speaker #2: Q3 will most likely be within this corridor. Cash outflow—so let me give you an update on our share buyback, which we started in August this year.

Speaker #2: So the cash outflow for the share buyback, as of last week Friday, 2nd of October: we bought back 955,764 shares for an aggregated volume of €62.5 million since the start of the program.

Rebecca Weigl: The cash outflow for the share buyback as of last week, Friday, 2 October, we bought back 955,764 shares for an aggregated volume of EUR 62.5 million since the start of the program. Let me continue with topic number seven, the additional financial information. Depreciation and amortization before restructuring expenses. For the full year 2026, we are guiding around EUR 230 million. In H1 of this year, we had EUR 107 million. Financial results. We have a guidance here for the entire year of -EUR 30 million, and in H1, we had -EUR 16.7 million. The tax rate is guided to be between 28% and 30% for the fiscal year 2026, and in H1, we had 29.7%. Last but not least, the R&D ratio. For the fiscal year, we are guiding around 3%, and in H1, we had 2.4%.

Speaker #2: Let me continue with topic number seven, the additional financial information: depreciation and amortization before restructuring expenses. For the full year 2026, we are guiding around €230 million.

Speaker #2: In the first half of this year, we had €107 million in financial results. We have a guidance here for the entire year of minus €30 million.

Speaker #2: And in the first half, we had minus €16.7 million. The tax rate is guided to be between 28% and 30% for the fiscal year 2026.

Speaker #2: And in the first half, we had 29.7%. And last but not least, the R&D ratio for the fiscal year—we are guiding around 3%.

Speaker #2: And in the first half, we had 2.4%. And with that, I hand back to Heidi for the Q&A session. We are happy to take any questions you might have.

Rebecca Weigl: And with that, I hand over back to Heidi for the Q&A session. We are happy to take any questions you might have.

Speaker #1: Thank you. We will now begin the question and answer session. If you wish to ask a question, you will need to press star 1-1 on your telephone and wait for your name to be announced.

Operator: Thank you. We will now begin the question and answer session. If you wish to ask a question, you will need to press star 1 1 on your telephone and wait for your name to be announced. To withdraw your question, please press star 1 1 again. We will take our first question, and the question comes from Sven Weier from UBS. Please go ahead. Your line is open.

Speaker #1: To withdraw your question, please press star 11 again. We will take our first question, and the question comes from Sven Weir from UBS. Please go ahead, your line is open.

Speaker #4: Yeah, thank you. Thanks for taking my questions; those are two. The first one is on order intake, please. Oliver, you said the H1 trend of around 10% organic growth should also hold true for the third quarter.

Sven Weier: Yeah, thank you. Thanks for taking my questions. There are two. The first one is on order intake, please. Oliver, you said the H1 trend of around 10% organic growth should also hold true for the Q3. Did you mean the positive trend or also with regards to the growth rate? That's the first question.

Speaker #4: So, did you mean the positive trend, or also with regard to the growth rate? That's the first question.

Speaker #3: Yeah, you can also translate this, that it's also with regards to the growth rate we have seen in the first six months. So the 10.7%, I've mentioned also the triple-digit number or million euros, so several large orders we have seen.

Oliver Luckenbach: Yeah. You can also translate this that it's also with regards to the growth rate we have seen in the first 6 months of the 10.7%. I've mentioned also the triple digit number or million euros, so several large orders we have seen. From that perspective, all we can see as of today is also another strong quarter also for order intake. Yeah.

Speaker #3: So, from that perspective, all we can see as of today is also another strong quarter for order intake. Yeah.

Speaker #4: And I think Stefan, in investor meetings, said he expects significant order intake growth for the year as a whole. Can you confirm that?

Sven Weier: I think Stefan in investor meetings, he said he expects significant order intake growth for the year as a whole. Can you confirm that?

Speaker #3: Yeah, I can confirm this. We know you know that Q4 will not be an easy quarter with €1.8 billion in front of us, but given the comments or what we see so far on Q3 is that Q3 should be a very good quarter in terms of order intake.

Oliver Luckenbach: Yeah, I can confirm this. We know you know that Q4 will not be an easy quarter with the EUR 1.8 billion in front of us. But given the comments or what we see so far on Q3 is that Q3 should be a very good quarter in terms of order intake. So let's say EUR 6 billion, more than EUR 6 billion in terms of order intake this year. That is something I think one can expect. Yeah.

Speaker #3: So let's say 6 billion, more than 6 billion in terms of order intake this year, that is something I think one can expect. Yeah.

Speaker #4: Sorry, could you just repeat the letter? I had a bad line.

Sven Weier: Sorry, could you just repeat the latter? The pipeline.

Speaker #3: So overall, we had $5.9 billion of order intake last year. So if we talk about further progress here also on order intake, the full-year number will most likely be more than $6 billion.

Oliver Luckenbach: Overall, we had EUR 5.9 billion of order intake last year. So if we talk about further progress here also on order intake, the full year number will most likely be more than EUR 6 billion. That is what we are expecting. Yeah.

Speaker #3: That is what we are expecting. Yeah.

Sven Weier: Understood. Yeah. Because I guess significant means more than 5% growth. Otherwise it would be slight, I guess.

Speaker #4: Understood. Yeah, because I guess 'significant' means more than 5% growth; otherwise, it would be 'slight,' I guess. And then, just on revenues, just to follow you there, did you say that Q3 should grow in line with the full-year guidance, between the 6 and 8?

Oliver Luckenbach: Yeah.

Sven Weier: Then just on revenues, just to follow you there, did you say that Q3 should grow in line with the full year guidance between 6% and 8%?

Speaker #3: I haven't said this, and as you know, overall in Q2, or in the second half, we are running against tougher comps. Q3 last year, organic sales growth was 4.5%, and 7.2%.

Oliver Luckenbach: I haven't said this. As you know, overall in Q2 or in the H2, we are running against tougher comps. Q3 last year, organic sales growth was 4.5%, 7.2% in Q4. But we have raised also our guidance for full year for the organic sales growth to 6% to 8%. So yeah, 6% to 8% is probably also a range for Q3. Yeah.

Speaker #3: In Q4, but we have raised also our guidance for full year for the organic sales growth to 6 to 8%. So yeah, 6 to 8% is probably also a range for Q3.

Speaker #3: Yeah.

Speaker #4: Because I remember you originally saying that the backlog had a phasing that is due to the second half. And I guess, especially on the project side, obviously, I guess that's still true, right?

Sven Weier: Because I remember you originally saying that the backlog had a phasing that is skewed to the H2. I guess especially on the project side, obviously, I guess that's still true, right?

Speaker #3: It is true, but also in the current backlog, and that is also explaining why, already today, it is so positive for 2027 and probably also 2028.

Oliver Luckenbach: It is true, but also in the current backlog, and that is also explaining why already today so positive for 2027 and probably also 2028. The overall backlog was up more than 13% at H1. So also most likely at the end of this year, we will go with a very strong order backlog already into next year because a lot of the especially very large orders like Palatna, they will also help us growing top line next year and probably also in 2028.

Speaker #3: The overall backlog was up more than 13% at H1. So, also most likely at the end of this year, we will go with a very strong order backlog already into next year, because a lot of the, especially very large orders like Balatna, will also help us grow top line next year and probably also in 2028.

Speaker #3: Yeah.

Speaker #4: Is there anything that has changed on the beverage side? Because I'm not sure what you said in Q2, but at least when we look at it from what Kronos has been saying, the momentum on the beverage side was a bit lukewarm.

Sven Weier: Is there anything that has changed on the beverage side? Because I am not sure what you said in Q2, but at least when we look at it from what Krones has been saying, that the momentum on the beverage side was a bit lukewarm, and I think you said it is strong. Has that changed in the last couple of months or did you say the same in Q2?

Speaker #4: And I think you said it's strong. Has that changed in the last couple of months, or did you say the same in Q2?

Speaker #3: Yeah. So, you know, we always have this mixture between the service business, which is a relatively stable, also growing business. Then we have the components business and the project.

Oliver Luckenbach: Well, it is always we have this mixture between the service business, which is a relatively stable and also growing business. Then we have the components business and the project business, and it is always then project driven. Every quarter can be different regarding are we able to book also bigger projects here. What we have seen, at least in the third quarter, is also good development here on the project side.

Speaker #3: Business. And it's always then the project-driven every quarter can be different regarding are we able to book also bigger projects here. And what we have seen at least in the third quarter is also a good development here on the project side.

Speaker #3: Yeah.

Speaker #1: And I mean, we mentioned also with the Q2 call, Sven, if you might remember, that for pure flow processing, beverage was actually one of the growth contributors for their order intake in the second quarter.

Rebecca Weigl: I mean, we mentioned also with the Q2 calls, if you might remember that for Pure Flow Processing, that actually beverage was also one of the growth contributors of their order intake in the second quarter.

Speaker #4: Okay. Understood. Thank you both.

Sven Weier: Okay, understood. Thank you both.

Speaker #3: You're welcome, Sven. Thanks.

Oliver Luckenbach: You are welcome, Sven. Thanks.

Speaker #1: Thank you. Once again, if you wish to ask a question, please press *11 on your telephone. We will take our next question. The question comes from Klaus Berglind from Citi.

Rebecca Weigl: Thank you.

Sven Weier: Thank you.

Operator: Once again, if you wish to ask a question, please press star one one on your telephone. We will take our next question, and the question comes from Klas Bergelind from Citi. Please go ahead. Your line is open.

Speaker #1: Please go ahead. Your line is open.

Speaker #5: Thank you. Yeah, so I had a couple of questions. First, on base orders—it looks like these are down slightly, quarter-on-quarter.

Klas Bergelind: Thank you. Yeah. I had a couple of questions. First on base orders, it looks like these are down slightly quarter-on-quarter. If I assume, I do not know exactly, but you said low triple digit, let us say EUR 120 million large orders, and then they are up high single digit organically. The comp is a little bit easier here compared to where we stood in Q2. I was just wondering, is there anything changing on the base order side? Obviously large orders are obviously picking up, but whether the base orders see some slowdown, if there was some pre-ordering Q2, that means they will be slowing down on base. Nutrition was very strong on base. Anything going on there, Oliver? Thank you.

Speaker #5: If I assume—I don't know exactly—but you said low triple digits. Let's say 120 million large orders. And they're up high single digits organically.

Speaker #5: The comp is a little bit easier here, compared to where we stood in the second quarter. And I was just wondering, is there anything changing on the base order side?

Speaker #5: Obviously, large orders are picking up. Whether the base orders see some slowdown—if there was some pre-ordering in the second quarter, that means they were slowing down on base. Nutrition was very strong on base.

Speaker #5: Anything going on there, Oliver? Thank you.

Speaker #3: No, no, not really, Klaus, to be honest. For sure, it's still relatively early now, so we do not have all these kinds of details.

Oliver Luckenbach: No, not really, Klas, to be honest. For sure, it is still relatively early now, so we do not have all these kind of details, but at least what we have seen so far and what we have also heard so far, there is no big disruption or downward trend or even no slight downward trend we are currently seeing here. So we also need to look then into the final numbers. But also in these lower order categories, we see continuous good demand across the different businesses.

Speaker #3: But at least what we have seen so far, and what we have also heard so far, there's no big disruption or downward trend, or even though there's a slight downward trend, we are currently seeing here.

Speaker #3: So, we also need to look into the final numbers. But also, in these lower order categories, we see continuous good demand across the different businesses.

Speaker #5: And then back to the large orders, customer industries—where are they tilted towards now, compared to when they're picking up?

Klas Bergelind: Back to the large orders. The customer industries, where are they tilted towards now when they are picking up?

Speaker #3: Yeah, so here we need to look into the details, but when we talked about the customer industries, I've already mentioned beverages. We talk, since quarters, about a very strong dairy business, especially on the processing side.

Oliver Luckenbach: Yeah. Now here we need to look into the details, but when we talked about the customer industries, I have already mentioned beverages. Since quarters, we talk about very strong dairy business, especially on the processing side, also pharma here, and I mentioned the continuous tablet presses, these are good businesses and where we see a very good demand here from our customers.

Speaker #3: Also, pharma here, and I mentioned the tablet presses. These are good businesses, and we see very strong demand from our customers.

Speaker #5: Okay, then my final one is on the sales growth. You're alluding to sort of midpoint—six to eight, around 7%—then for the third quarter.

Klas Bergelind: Okay. Then my final one is on the sales growth. You are alluding to sort of midpoint 6% to 8%, around 7% then for Q3. If you think about margin here, so no surprises, up 80, 90 basis points year-over-year, a bit similar to Q2, similar pace sequentially. Is that how to think about it, which is broad in line with consensus or anything going on from a price cost point of view mix that we need to think about this quarter?

Speaker #5: If you think about margin here—so yeah, I mean, no surprises. Up 80 to 90 basis points year over year, a bit similar to the second quarter.

Speaker #5: Similar pace, sequentially—is that how to think about it? Which is broadly in line with consensus? Or is there anything going on from a price-cost point of view, mix, that we need to think about?

Speaker #5: Yeah, this quarter.

Speaker #3: Yes, so if you look at what we have achieved in the first half, it was 16.8%. Last year, we had 17.0%. In the third quarter, as I've mentioned, we need and want to go into the corridor of 17 to 17.4% for the full year.

Oliver Luckenbach: Yeah. If you look at what we have achieved in H1, it was 16.8%. Last year, we had 17.0% in Q3. As I have mentioned, we need and want to go to the corridor of 17% to 17.4% for the full year. So there also needs to be some further improvement in terms of margin than also in Q3. Driven by what I have talked or we talked about in terms of sales growth and then also certain leverage that can be expected. For sure, always need to look into mix then a little bit later once we have the numbers. But yes, overall, you can also expect good margin development in Q3.

Speaker #3: So there also needs to be some further improvement in terms of margin, then also in the third quarter, and driven by what I talked—or we talked about—in terms of sales growth and then also certain leverage that can be expected.

Speaker #3: For sure, we always need to look into mix, then a little bit later, once we have the numbers. But yes, overall, you can also expect good margin development in Q3.

Speaker #5: Thank you.

Klas Bergelind: Thank you.

Speaker #1: Thank you. As a reminder, if you wish to ask a question, please press star 11 on your telephone. We will take our next question.

Operator: Thank you. As a reminder, if you wish to ask a question, please press star 11 on your telephone. We will take our next question, and the question comes from the line of Ben Seelman from Bernstein. Please go ahead. Your line is open.

Speaker #1: And the question comes from the line of Ben Fillman from Bernstein. Please go ahead, your line is open.

Speaker #4: Yeah, hey guys, can you hear me?

Ben Seelman: Yeah. Hey, guys. Can you hear me?

Ben Thielmann: Yeah. Hey, guys. Can you hear me?

Speaker #3: Yeah.

Oliver Luckenbach: Yeah.

Ben Seelman: Okay. I am traveling, so sorry for the background noises. Maybe 2 questions from my side, if I may. First one is on tablet presses. You already mentioned it, Oliver. Is that particularly driven by what? We see that estimates for prescription volumes for oral GLP-1 drugs looks quite promising. Is that something that you already see in the order book, or where exactly is potentially good demand for tablet presses coming from? That is the first question, and then the second question is on chemicals. Chemicals, it is a little bit with Krones on beverages. We hear so many negatives about the chemicals market. Andritz is talking about it. Sulzer registered this in their warning a couple of weeks ago. That business has been down for you in the last couple of quarters. Maybe any update on that would be super helpful. Thank you.

Ben Thielmann: Okay. I am traveling, so sorry for the background noises. Maybe 2 questions from my side, if I may. First one is on tablet presses. You already mentioned it, Oliver. Is that particularly driven by what? We see that estimates for prescription volumes for oral GLP-1 drugs looks quite promising. Is that something that you already see in the order book, or where exactly is potentially good demand for tablet presses coming from? That is the first question, and then the second question is on chemicals. Chemicals, it is a little bit with Krones on beverages. We hear so many negatives about the chemicals market. Andritz is talking about it. Sulzer registered this in their warning a couple of weeks ago. That business has been down for you in the last couple of quarters. Maybe any update on that would be super helpful. Thank you.

Speaker #4: Okay, I'm traveling. Sorry for the background noises. Maybe two questions from my side, if I may. The first one is on tablet presses. You already mentioned that, Oliver.

Speaker #4: Is that particularly driven by what? I mean, we see that estimates for prescription volumes for oral GLP-1 drugs look quite promising. Is that something that you already see in the order book, or where exactly is potentially good demand for tablet presses coming from?

Speaker #4: That's the first question. And then the second question is on chemicals. I mean, chemicals are a little bit like chrome is with beverages. We hear so many negatives about the chemicals market.

Speaker #4: Andrew is talking about it. Sulzer, we just had a Bilfinger warning a couple of weeks ago. That business has been down for you in the last couple of quarters. Maybe any update on that would be super helpful.

Speaker #4: Thank you.

Speaker #2: And maybe I'm going to start with the tablet presses. So, Ben, what is actually driving the good demand for tablet presses is the new innovation we brought to the market for continuous tablet presses.

Rebecca Weigl: Maybe I am going to start with the tablet presses. So Ben, what is driving the good demand for tablet presses is actually the new innovation we brought into the market for continuous tablet presses. Historically, tablets were produced in batches. It is a bit like producing or baking cookies for Christmas. So when you have one ready, you put it into the oven and wait until it is ready, and then you do the quality test. To simplify it. Batch processing and continuous tablet pressing is really, you have it all the time automatically going through the oven, and the quality check is happening in between. So you do not have these interruptions, and if you have a quality issue that you need to throw away the entire batch.

Speaker #2: So, historically, tablets were produced in batches. It's a bit like baking cookies for Christmas. When you have one ready, you put it into the oven and wait until it's done, and then you do the quality test.

Speaker #2: Yeah. So to simplify it, batch processing and continuous tablet pressing is really—you have it all the time, automatically going through the oven, and the quality check is happening in between.

Speaker #2: So you don't have these interruptions, and you don't have to throw away the entire batch if you have a quality issue.

Speaker #2: And this continuous tablet press technology has actually gained a lot of traction also, actually, I think we launched it a couple of years ago.

Rebecca Weigl: This continuous tablet press technology has actually gained a lot of traction also actually. I think we launched it a couple of years ago. We talked about that quite openly at our capital markets day in 2024, and we have seen actually good order intake since then. Plus on top, what you mentioned with GLP-1, what we are seeing now that GLP-1 is coming into tablets form, so it can be taken orally in the future. I think that opens another opportunity for the future for us, then if there is even more demand coming for the tablet business.

Speaker #2: We talked about that quite openly at our Capital Markets Day in 2024. And we have actually seen good order intake since then. And then, plus on top of what you mentioned with GLP-1, I mean, what we are seeing now is that GLP-1 is coming in tablet form.

Speaker #2: So, it can be taken orally in the future. And I think that opens another opportunity for us going forward. Then, if there is even more demand coming for the tablet business.

Speaker #3: And maybe on the chemicals side, it's not one of the customer industries. We are also talking here a lot in the pre-close call—not because we do not want to, but it's not one of the major focus areas of care in general.

Oliver Luckenbach: Maybe on the chemicals side, it is not one of the customer industries. We are also talking here a lot in the pre-close call, not because we do not want, but it is not one of the major focus areas of GEA in general. Here we need to see what was going on here in terms of orders. Most likely, maybe currently not the strongest end market.

Speaker #3: And here, we need to see if there was some—what was going on here in terms of orders. But yeah, most likely, maybe currently not the strongest end market.

Speaker #3: Yeah.

Speaker #1: Okay.

Ben Seelman: Okay. Sounds good.

Ben Thielmann: Okay. Sounds good.

Speaker #4: Much better.

Speaker #3: Thank you, Ben.

Oliver Luckenbach: Thank you, Ben.

Speaker #1: Thank you. There seem to be no further questions at this time. I will now hand back to Oliver. Looking to him for closing remarks.

Operator: Thank you. There seems to be no further questions at this time. I will now hand back to Oliver Luckenbach for closing remarks.

Speaker #3: Yeah. Thank you very much, Heidi, and thanks. I think we're...

Oliver Luckenbach: Yeah. Thank you very much, Heidi, and thanks.

Rebecca Weigl: I think we are hearing that there is another question coming in.

Speaker #2: Hearing that there's a question coming in.

Speaker #3: I was just told, so I stopped.

Oliver Luckenbach: I was just told. I apologize for the remarks.

Speaker #1: Apologies.

Speaker #3: Yeah.

Operator: Apologies. Please stand by. I will announce the question. One moment, please. Your question comes from Adrian Rale from Oddo BHF. Please go ahead. Your line is open.

Speaker #1: Apologies. Please stand by. I'll announce the question. One moment, please. And your question comes from Adrian Ralph from Otter BHF. Please go ahead, your line is open.

Adrian Rale: Yes. Hi, Adrian Rale from Oddo BHF. Just three housekeeping questions left, but nevertheless, good to check on them, I guess. For the free cash flow, not saying that this was an official guidance, but so far, I think the narrative was that you target pretty much the same range as last year. Just wanted to hear, is that still valid? The same holds true for the restructuring amount. Should we expect a similar quarterly number than what we have seen? The very last one is on foreign exchange. Should we factor in any specific moves on FX rates? Is that kind of waning off, in terms of the effect that we saw? Thank you.

Adrian Pehl: Yes. Hi, Adrian Rale from Oddo BHF. Just three housekeeping questions left, but nevertheless, good to check on them, I guess. For the free cash flow, not saying that this was an official guidance, but so far, I think the narrative was that you target pretty much the same range as last year. Just wanted to hear, is that still valid? The same holds true for the restructuring amount. Should we expect a similar quarterly number than what we have seen? The very last one is on foreign exchange. Should we factor in any specific moves on FX rates? Is that kind of waning off, in terms of the effect that we saw? Thank you.

Speaker #5: Yes, hi, Agent P from Otter BHF. Just three housekeeping questions left—but nevertheless, good to check on them, I guess. So, for the free cash flow, not saying that this was an official guidance, but so far I think the narrative was that you target pretty much the same range as last year.

Speaker #5: Just wanted to ask, is that still valid? And then, the same holds true for the restructuring amount. Should we expect a similar quarterly number to what we have seen in the very last one, regarding foreign exchange?

Speaker #5: Should we factor in any specific moves on interest rates on FX rates? Or is that kind of weighing off in terms of the effect that we saw?

Speaker #5: Thank you.

Speaker #3: Yeah, thanks for your question, Adrian. First of all, on free cash flow—yes, we can confirm what we have said so far: for the full year, it will be around about the same level as last year.

Oliver Luckenbach: Yeah. Thanks for your questions, Adrian. First of all, on free cash flow, yes, we can confirm what we have said so far, that for the full year, it will be round about the same level as last year. So let's say around about EUR 500 million. Also in terms of restructurings, we have set roughly the level of last year, so round about EUR 50 million. Last not least, on the FX side, it will be most likely in the neutral, maybe even slightly positive from the FX side. So it's a kind of a turnaround we are seeing here, at least compared to the last quarters. So it could be neutral and maybe even slightly positive, but no big impact from today's point of view. Yeah.

Speaker #3: So let's say, around about €500 million. Also, in terms of restructurings, we have said roughly the level of last year—so, around about €50 million.

Speaker #3: And last but not least, on the FX side, it will most likely be neutral, maybe even slightly positive from the FX side.

Speaker #3: So it's a kind of turnaround we are seeing here, at least compared to the last quarters. So it could be neutral and maybe even slightly, slightly positive, but no big impact from today's point of view.

Speaker #3: Yeah.

Speaker #5: Right. And just quickly, a follow-up on free cash. Given that you had, I guess, what you said is probably a bit ahead of expectations on the order intake for the third quarter—and since this has been a topic, or will be a topic, for the full year, I assume.

Adrian Rale: Right. Just quickly follow up on free cash. Given that you had, I guess what you said is probably a bit ahead of expectations on the order intake for the Q3, and since this has been a topic or will be a topic for the full year, I assume, should we take into account that your prepayments that you are collecting from customers will support the free cash flow? Are there any other effects we should take into account on that very number?

Adrian Pehl: Right. Just quickly follow up on free cash. Given that you had, I guess what you said is probably a bit ahead of expectations on the order intake for the Q3, and since this has been a topic or will be a topic for the full year, I assume, should we take into account that your prepayments that you are collecting from customers will support the free cash flow? Are there any other effects we should take into account on that very number?

Speaker #5: Should we take into account that the prepayments you're collecting from customers will support the free cash flow, or are there other effects we should take into account on that very number?

Speaker #3: Yeah, that's exactly what we are normally seeing—this kind of prepayments—and we then need to look into the details of how this developed, then, in Q3.

Oliver Luckenbach: Yeah, that is exactly what we are normally seeing, these kind of prepayments. We then need to look into the details, how this develops in Q3. But no other big impact to be considered from today's point of view. Yeah.

Speaker #3: But no other big impact to be considered from today's point of view.

Speaker #2: I mean, except for the fact, as we mentioned, like CapEx, that the second half will have more CapEx than the first.

Rebecca Weigl: Except for the factors we mentioned, like CapEx.

Oliver Luckenbach: Yeah, sure.

Adrian Pehl: Yeah, sure.

Rebecca Weigl: That the H2 will be more CapEx.

Oliver Luckenbach: Right. Yeah.

Adrian Pehl: Right. Yeah.

Rebecca Weigl: than the first.

Adrian Rale: Mm-hmm. Okay. Will you say something about the status of the ERP rollout?

Adrian Pehl: Mm-hmm. Okay. Will you say something about the status of the ERP rollout?

Speaker #5: Okay. Will you say something about the status of the ERP rollout? It seems a little bit delayed, but I'm not quite sure if that has changed incrementally since what you said the last couple of weeks and months.

Oliver Luckenbach: Yes.

Adrian Rale: It seems a little bit delayed, but not quite sure if that has changed incrementally since what you said the last couple of weeks and months.

Adrian Pehl: It seems a little bit delayed, but not quite sure if that has changed incrementally since what you said the last couple of weeks and months.

Speaker #3: Yeah. Yeah. Actually, we have heard that there was some feedback was that it's delayed, but it's not delayed. It's or when we had our capital markets day 2024, then we have given them the new framing and so from that perspective, it's delayed.

Oliver Luckenbach: Yeah. Actually, we have heard that there was some feedback that it is delayed, but it is not delayed. When we had our capital markets day 2024, then we have given them the new framing, so from that perspective, it is delayed. But as such, it is not delayed. Today, we have around about 15%, 15% of total sales on this new platform. It will be about a quarter, then beginning of next year. We always said it is a longer-lasting project, and it still takes some time, but at least according to what we see so far, it is running according to plan. Yeah.

Speaker #3: But as such, it's not delayed. And today, we have around about 15%—one-five percent—of total sales on this new platform. It will be about a quarter.

Speaker #3: Then, beginning of next year, and we always said it's a longer-lasting project. And it still takes some time, but at least according to what we see so far, it's running according to plan.

Speaker #3: Yeah.

Speaker #5: Okay, I think the financial impact will be limited anyway. But thank you for that. So, have a good week.

Adrian Rale: Okay. I think the financial impact will be limited anyway, but thank you for that. Have a good week.

Adrian Pehl: Okay. I think the financial impact will be limited anyway, but thank you for that. Have a good week.

Speaker #3: Sure.

Oliver Luckenbach: Sure.

Speaker #1: Thank you. We will take our next question. Your next question comes from Bowen Thacker from Bloomberg Intelligence. Please go ahead—your line is open.

Operator: Thank you. We will take our next question. Your next question comes from Bhavin Thakkar from Bloomberg Intelligence. Please go ahead. Your line is open.

Speaker #4: Thank you so much for taking my question. I just had one with regard to Farm Technologies order intake. Over the last three quarters, we have seen quite a step up, in the range of $230 to $240 million worth of order intake.

Bhavin Thakkar: Thank you so much for taking my question. I just had one with regards to Farm Technologies order intake. Over the last three quarters, we have seen quite a step-up in the range of EUR 230 to EUR 240 million worth of order intake. Shall we expect such a momentum to continue into the H2 of the year, or shall we think otherwise?

Bhawin Thakker: Thank you so much for taking my question. I just had one with regards to Farm Technologies order intake. Over the last three quarters, we have seen quite a step-up in the range of EUR 230 to EUR 240 million worth of order intake. Shall we expect such a momentum to continue into the H2 of the year, or shall we think otherwise?

Speaker #4: Shall we expect such momentum to continue into the second half of the year, or should we think otherwise?

Speaker #3: Yeah, thanks for your question. Let's say, on specific divisions, it's too early to talk about certain numbers in a certain quarter.

Oliver Luckenbach: Yeah. Thanks for your question. On specific divisions, it is too early to talk about certain numbers in a certain quarter. But what I have mentioned at the beginning is that in dairy farming, the market outlook that what we see is the sentiment is okay, and that we are seeing here ongoing good demand, especially driven by large or larger farms. So that is what we can share as of today.

Speaker #3: But let's say, as I mentioned at the beginning, in dairy farming the market outlook we see is that the sentiment is okay.

Speaker #3: And what we are seeing here is ongoing good demand, especially driven by large, or larger, farms. Yes, so that is what we can share as of today.

Speaker #4: Thank you.

Bhavin Thakkar: Thank you.

Bhawin Thakker: Thank you.

Speaker #3: You're welcome.

Oliver Luckenbach: You are welcome.

Speaker #1: Thank you. We will take our next question. The question comes from the line of Meian Yang from Goldman Sachs. Please go ahead, your line is open.

Operator: Thank you. We will take our next question. The question comes from the line of Meiyan Yang from Goldman Sachs. Please go ahead. Your line is open.

Meiyan Yang: Hi, good afternoon. I just want to follow up on the dairy farming business, per your comment that you think the sentiment was okay. Do you see versus in Q1 and Q2, has the recent moves in agriculture products prices been helpful, or have you seen more pushback from customers because of the high energy and the material cost? Thank you.

Meihan Yang: Hi, good afternoon. I just want to follow up on the dairy farming business, per your comment that you think the sentiment was okay. Do you see versus in Q1 and Q2, has the recent moves in agriculture products prices been helpful, or have you seen more pushback from customers because of the high energy and the material cost? Thank you.

Speaker #2: Hi, good afternoon. I just want to follow up on the dairy farming business per your comment that you think the sentiment was okay. Do you see versus in Q1 and Q2, has the recent moves in agriculture product prices been helpful?

Speaker #2: Or have you seen more pushback from customers because of the high energy and the material costs? Thank you.

Speaker #3: Yeah, I would say no, let's say, special new developments here. And what we are certainly also looking at, and what you can also see, is the milk-to-feed price ratio.

Oliver Luckenbach: Yeah, I would say no, let's say, special new developments here. What we are certainly also looking at, and what you can also see in the milk to feed price ratio. So in most of the regions and countries where we are active, that's still, let's say, at a very healthy level also for the farmers. There might always be some small holder farmers also depending on subsidies, which can vary then also country by country, year by year, quarter by quarter, this might have an impact. But the overall picture, as I've just said, remains positive for the time being.

Speaker #3: So, in most of the regions and countries where we are active, that's still, let's say, at a very healthy level also for the farmers.

Speaker #3: There might always be some smallholder farmers also depending on subsidies, which can then vary country by country, year by year, quarter by quarter.

Speaker #3: This might have an impact, but the overall picture, as I've just said, remains positive—for the time being.

Speaker #2: Got it. Thank you.

Meiyan Yang: All right. Thank you.

Meihan Yang: All right. Thank you.

Speaker #3: You're welcome.

Oliver Luckenbach: You're welcome.

Operator: There seems to be no further questions at this time. I will hand back for closing remarks.

Speaker #1: There seem to be no further questions at this time. I will hand back for closing remarks.

Speaker #3: So, yeah, my second try for the closing remarks. So, first of all, to the investors and analysts, many thanks for participating in today's pre-close call and also especially for your questions.

Oliver Luckenbach: My second try for the closing remarks. First of all, dear investors and analysts, many thanks for participating in today's pre-close call, and also especially for your questions. With the end of this call, as always, we will start our quiet period and are already very much looking forward to talking to you again, then beginning of November, 9 November, the day of the release of our Q3 numbers. All the best from the entire IR team. Stay healthy and talk to you in November. Bye bye.

Speaker #3: With the end of this call, as always, we will start our quiet period. We are already very much looking forward to talking to you again.

Speaker #3: Then, beginning of November—9th of November, the day of the release of our Q3 numbers. All the best from the entire IR team. Stay healthy and talk to you in November.

Speaker #3: Bye-bye.

Operator: This concludes today's conference call. Thank you for participating. You may now disconnect.

Browse all earnings call transcripts

Q3 2026 GEA Group AG Pre-Close Earnings Call

Request TrialDemo

GEA

Earnings