Friedrich Vorwerk Group SE ((DE:VH2)) has held its Q3 earnings call. Read on for the main highlights of the call.
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Friedrich Vorwerk Group SE’s recent earnings call conveyed a strong performance, marked by record-breaking revenue and profitability. The company demonstrated significant growth in order volume and successful recruitment efforts. However, challenges such as potential delays in major projects and seasonal revenue fluctuations were also highlighted.
Record-Breaking Quarterly Revenue
Friedrich Vorwerk achieved a milestone by recording quarterly revenue exceeding EUR 200 million for the first time in its history. This represents a remarkable 39% growth compared to the previous year, showcasing the company’s robust financial health and market presence.
Strong Profitability
The company’s profitability saw a significant boost, with the EBITDA margin improving to 25.4% in Q3. This marks a 4 percentage point increase from the previous quarter and an 8 percentage point increase compared to the previous year, reflecting efficient operational management.
Significant Growth in Order Volume
The total project volume acquired by Friedrich Vorwerk rose by 45% to EUR 886 million in the first nine months of 2025. This substantial increase underscores the company’s ability to secure and manage large-scale projects effectively.
Successful Employee Recruitment
The company successfully recruited over 100 new employees in Q3, which included a small M&A transaction. This strategic move has significantly contributed to the company’s growth and operational capacity.
Innovative Welding System
Friedrich Vorwerk’s newly developed PX2 welding system has demonstrated high productivity and low defect rates. This innovation has opened new markets in Croatia and Turkey, highlighting the company’s commitment to technological advancement.
Potential Delays in Anord Project
The Anord project faces potential delays due to a lack of building clearance and missing permits. These issues are expected to impact revenue expectations, presenting a challenge for the company.
Order Backlog Decline
There was a slight decline in the order backlog to EUR 1.1 billion, primarily due to a shift in order structure toward joint ventures. This shift indicates a strategic realignment in the company’s project management approach.
Seasonal Revenue Fluctuations
The company anticipates weaker revenue in Q4 due to usual seasonality, weather conditions, and fewer working days. This seasonal fluctuation is a common challenge in the industry.
Forward-Looking Guidance
During the earnings call, the company provided substantial guidance for future growth. CEO Torben Kleinfeldt emphasized a robust growth trajectory with a notable order backlog exceeding EUR 1 billion and a focus on hydrogen projects. The company raised its guidance, projecting 2025 revenues between EUR 650 million and EUR 680 million with an EBITDA margin of 20% to 22%. The strategic initiatives in pipeline construction, district heating, and CO2 transport, along with innovative welding systems, position Friedrich Vorwerk for continued success in the coming years.
In conclusion, Friedrich Vorwerk Group SE’s earnings call highlighted a strong financial performance with record-breaking achievements and strategic growth initiatives. While challenges such as project delays and seasonal fluctuations exist, the company’s forward-looking guidance and commitment to innovation suggest a promising future.