Continued growth, strong order intake
Note: If not otherwise indicated, changes from the previous year are based on organic figures (adjusted for currency effects, acquisitions / divestitures and deconsolidations).
The Flow division achieved a strong order intake increase of 12.3% in 2024. Thanks to rising demand in the wastewater and the “green minerals” sectors, the Water and Industrial business order intake increased by 10.6%, while order intake for the Energy and Infrastructure business saw an increase of 14.7%. Overall sales for the Flow division increased by 9.4% to CHF 1’444.3 million. Operational profitability rose by 150 basis points year-on-year, reflecting an ongoing focus on commercial and operational excellence, and cost discipline.
Focus on growth and excellence
The Energy and Infrastructure business profited from a good market momentum in the second half of 2024. Sales in the Water and Industrial business continued to grow profitably. The water business delivered double-digit order intake growth in 2024. The division is also placing greater emphasis on aftermarket services, expanding beyond spare parts to offer comprehensive lifecycle solutions, including the servicing of non-Sulzer equipment.
Flow concluded a number of strategic growth investments in 2024, including the expansion of Sulzer’s plant in Easley, USA, where new assembly lines and testing facilities were installed. Also, the manufacturing plant near Mexico City has been updated with a state-of-the-art assembly and test center for vertical turbines.
In 2024, two major projects highlighted the know-how and industry leadership of Flow: in collaboration with TechnipFMC, the division developed a new subsea CO2 pump solution. Used in technology leveraging the HISEP® process, it is an enabler of the separation of CO2-rich natural gas from oil at the seabed, resulting in significant energy efficiency gains. Flow was also the chosen partner for one of the world’s largest water treatment projects in Egypt. With a daily capacity of 7.5 million cubic meters, the New Delta Treatment Plant is using individualized Sulzer technology to treat wastewater.
Flow pump solutions have also been the choice of one of China’s production sites for Sustainable Aviation Fuels (SAF). This facility in Shandong will produce more than 500’000 metric tons of SAF per year. The SAF meets rigorous aviation performance standards and is made from renewable feedstocks.
The Flow division introduced several product innovations in 2024 to expand its range of water solutions, underscoring its leading position in the water business. It also completed the multi-year modernization project of its desalination pump portfolio, further optimizing efficiency.
Key figures for Flow
|
millions of CHF |
|
2024 |
|
2023 |
|
Change in +/–% |
|
+/–% adjusted 1) |
|
+/–% organic 2) |
|
Order intake |
|
1’603.3 |
|
1’466.5 |
|
9.3 |
|
12.4 |
|
12.3 |
|
Order intake gross margin |
|
31.3% |
|
30.2% |
|
|
|
|
|
|
|
Order backlog as of December 31 |
|
1’053.5 |
|
878.3 |
|
20.0 |
|
|
|
|
|
Sales |
|
1’444.3 |
|
1’354.4 |
|
6.6 |
|
9.7 |
|
9.4 |
|
EBIT |
|
111.8 |
|
74.1 |
|
50.9 |
|
|
|
|
|
EBITDA |
|
169.6 |
|
128.4 |
|
32.1 |
|
|
|
|
|
Operational profit |
|
137.4 |
|
108.2 |
|
27.0 |
|
32.2 |
|
31.4 |
|
Operational profitability |
|
9.5% |
|
8.0% |
|
|
|
|
|
|
|
Employees (number of full-time equivalents) as of December 31 |
|
5’492 |
|
5’465 |
|
0.5 |
|
|
|
|
1) Adjusted for currency effects.
2) Adjusted for acquisition, divestiture / deconsolidation and currency effects.
Continued strong order intake
After a strong order intake in 2023, the Flow division once again demonstrated continued strong growth, with a 12.3% increase in order intake in 2024. This was supported by large one-time orders in Energy and Infrastructure and a number of larger orders in Water and Industrial.
Order intake by market segment
2024
Order intake by region
2024
Improved profitability
All business units contributed to the overall strong sales growth (+9.4%) of the Flow division. Operational profitability increased by 150 basis points from 8.0% to 9.5%, mainly driven by an increased focus on disciplined control of operational expenditures and improved commercial and operational excellence. By merging the two business units of Water and Industry, further improvements in profitability were achieved.
Safety performance in 2024
Flow’s accident frequency rate (AFR) increased from a multi-year low of 0.95 cases per million working hours in 2023 to 1.4 in 2024. This is above the target of 1.0 cases per million working hours, and concerted efforts will be undertaken in 2025 to decrease the division’s AFR through strengthened safety measures and communications. The division’s accident severity rate (ASR) also increased to 29.5 lost days per million working hours, up from 16.9 the previous year.
In 2024, Sulzer continued to reinforce its commitment to workplace safety through its “Stop Work for Safety” campaign across the three divisions. Aimed at improving risk assessments and promoting work interventions where unsafe practices are observed, the 2024 campaign targeted the critical area of mechanical handling. Sulzer further prioritized its company-wide accident investigation capabilities, conducting comprehensive Accident Investigation Trainings, incorporating principles from the Human and Organizational Performance (HOP) and Learning from Normal Work concepts. These training efforts will continue throughout 2025, with a focus on equipping Sulzer's global ESH management teams with the skills and insights needed to identify root causes, understand human error traps and implement effective corrective actions.
Abbreviations
EBIT: Earnings before interest and taxes
EBITDA: Earnings before interest, taxes, depreciation, amortization and impairment
For the definition of the alternative performance measures, please refer to “Supplementary information.”