GEA Group Aktiengesellschaft (OTCPK:GEAGF) Q1 2025 Earnings Call May 8, 2025 8:00 AM ET Company Participants Oliver Luckenbach - Head, Investor Relations Stefan Klebert - Chief Executive Officer Bernd Brinker - Chief Financial Officer Conference Call Participants Klas Bergelind - Citi Adrian Pehl - ODDO BHF Operator Good day and thank you for standing by. Welcome to the GEA Group AG Q1 2025 Conference Call.
GEA Group has shown consistent improvement, with sales, EBITDA, and ROCE significantly increasing since 2019, justifying a higher valuation of 17-20x P/E. The company's market-leading position in industrial and process systems, coupled with strong service contracts, ensures stability and growth potential despite historical earnings forecast inaccuracies. With new leadership and strategic focus on sustainability, digitalization, and innovation, GEAGF is well-positioned for future growth, targeting €60-€80/share by 2027.
GEA Group saw a significant jump in stock price, outperforming the index by 9%. Despite declining order intake and revenues, the company raised profitability and full-year expectations. GEA Group is a market leader in industrial systems, with positive outlooks for the future and strong cash generation.
Here is how GEA Group AG (GEAGF) and Gorman-Rupp (GRC) have performed compared to their sector so far this year.
GEA Group (GEAGF) might move higher on growing optimism about its earnings prospects, which is reflected by its upgrade to a Zacks Rank #1 (Strong Buy).