Order intake in Q1 2024 remained strong, growing by 4.0% and exceeding the high baseline in Q1 2023, which had recorded an increase of 31.2% compared to Q1 2022. This was driven by continued strong performance in Services and yet another large order placed with Chemtech. 

Q1 2024 order intake in Swiss Francs was negatively impacted by CHF 84.0m due to a translation effect resulting from the strengthening of the Swiss Franc, our reporting currency, against most currencies. Divestments amounted to CHF 2.6m. 

Q1 2024 order intake in Flow Equipment declined by -13.8% compared to Q1 2023 after an extraordinary order intake growth in Q1 2023. Q1 2023 order intake was 42.8% higher than Q1 2022 order intake due to an exceptional cumulation of Energy orders that Quarter. Water and Industry increased by 7.6%, with solid demand in all markets. 

Strong performance in Services saw orders grow by 26.2%, benefitting from the strong market momentum in the Americas and Asia Pacific region. All product lines contributed to the double-digit growth. 

In Chemtech, orders grew by 8.2% compared to an already strong baseline in Q1 2023, fueled by continued momentum in its renewables markets.

Geographically, Sulzer’s order intake grew 15.7% in the Americas and 5.1% in Asia Pacific, whereas Europe, the Middle East and Africa declined -8.2%, mainly due to the exceptionally high comparison base in Q1 2023 for Energy.

Note: All % growth rates are adjusted for currency and acquisition / disposal effects.

Outlook

Order intake in Q1 2024 was above our expectations due to the nature of the project business in Sulzer’s markets. We expect demand in our markets to remain in the range of the previously communicated guidance for the full year 2024, with order intake growth of 2 to 5% year-on-year, sales growth of 6 to 9% and operational profitability to continue its upward trajectory to around 12% of sales.

Sulzer plans a Capital Markets Day (CMD) on June 10, 2024, with a specific spotlight on its 2028 strategy.

This document may contain forward-looking statements including, but not limited to, projections of financial developments, market activity, or future performance of products and solutions containing risks and uncertainties. These forward-looking statements are subject to change based on known or unknown risks and various other factors that could cause actual results or performance to differ materially from the statements made herein.