NORDEX AG ((DE:NDX1)) has held its Q2 earnings call. Read on for the main highlights of the call.
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The recent earnings call of Nordex AG reflected a generally positive sentiment, highlighting significant growth in order intake and profitability, particularly in the European market. Despite facing challenges in the U.S. and Brazilian markets, as well as dealing with high warranty provisions, the company’s performance remains robust with continuous improvement in financial metrics.
Significant Order Intake Growth
Nordex AG reported a remarkable growth in turbine order intake, reaching 2.3 gigawatts in Q2, which marks an 82% increase year-over-year. This growth translates to an 83% increase in euro value, pushing the order book to EUR 14.3 billion.
Improved Profitability
The company saw a 64% year-over-year rise in EBITDA, with an increase in the EBITDA margin by 220 basis points, reaching 5.8%. Additionally, Nordex reported a net income of EUR 31 million, showcasing improved profitability.
Positive Free Cash Flow
Nordex achieved a positive free cash flow of EUR 145 million in Q2 2025, attributed to strong operational performance, which is a significant indicator of financial health.
Strong Service Business Performance
The service segment of Nordex AG showed robust performance with revenues growing by 17% year-over-year. The EBIT margin in this segment reached 17.7%, supported by a high fleet availability of 97%.
Market Leadership in Europe
Nordex continues to lead the market in Europe, with strong order intake from countries like Germany, Turkiye, and Latvia, reinforcing its dominant position in the region.
Challenges in the U.S. Market
The U.S. market presents uncertainties in the short term due to executive orders impacting the safe harbor provision and order pipeline, posing challenges for Nordex.
Brazil Market Challenges
In Brazil, Nordex faces difficulties due to low electricity prices and grid issues, which are affecting project execution and market dynamics.
Legacy Warranty Provisions
Warranty provisions were notably high in Q2, amounting to EUR 85 million, primarily due to final agreements with large customers, indicating ongoing challenges in this area.
Forward-Looking Guidance
Nordex AG’s forward-looking guidance remains optimistic, with promising metrics indicating substantial progress. The company anticipates maintaining momentum with sales guidance set between EUR 7.4 billion to EUR 7.9 billion for 2025, aiming for an 8% EBITDA margin in the medium term. The overall market outlook is solid, with Europe playing a significant role in future growth.
In conclusion, Nordex AG’s earnings call highlighted a positive trajectory with substantial growth in order intake and profitability, particularly in Europe. Despite challenges in the U.S. and Brazilian markets, the company is well-positioned to capture future opportunities, supported by strong financial metrics and strategic market leadership.