NORDEX AG ((DE:NDX1)) has held its Q4 earnings call. Read on for the main highlights of the call.
Nordex AG’s recent earnings call highlighted a strong financial performance, marked by record order intake and significant growth in service revenue. Despite facing challenges in installation rates and potential underutilization in the U.S. market, the company expressed optimism about its future growth and profitability, supported by a solid order book and improving margins.
Record Order Intake in 2024
Nordex AG achieved a record order intake of 8.3 gigawatts in 2024, reflecting a 12% year-on-year growth. This impressive feat translates to a total order value of €7.5 billion, spanning 24 countries, showcasing the company’s expanding global footprint and robust demand for its offerings.
Strong Financial Performance
The company reported a robust free cash flow of €271 million and a net cash position of €848 million in 2024. Additionally, the EBITDA margin improved to 4.1%, a significant recovery from the breakeven point last year, indicating enhanced operational efficiency and financial health.
Service Business Growth
Nordex’s service revenue grew by 15%, reaching €777 million in 2024. The company is on track to return its EBIT margins to normal levels of 18%-19% within the next 12-18 months, reflecting strong performance in its service segment.
Positive Outlook for 2025
Looking ahead to 2025, Nordex has set guidance for sales between €7.4 billion and €7.7 billion, with an EBITDA margin projected between 5% and 7%. This outlook underscores the company’s confidence in its growth trajectory and market position.
Sustainability Achievements
Nordex made significant strides in sustainability, achieving a notable reduction in lost time injury frequency and receiving approval for science-based targets to reduce greenhouse gas emissions. These achievements highlight the company’s commitment to sustainable operations.
Decrease in Installations
The company experienced an 8% decrease in installations in 2024 compared to the previous year. This decline was primarily attributed to customer schedules and minor delays on the customer side, indicating external factors influencing installation rates.
U.S. Market Challenges
Nordex faced a temporary slowdown in the U.S. market, with some potential underutilization of its Iowa plant. This challenge reflects broader market conditions and underscores the need for strategic adjustments to navigate regional market dynamics.
Forward-Looking Guidance
During the Nordex Q4 2024 conference call, the company reported strong financial and operational performance, fully achieving its guidance for the year. Key metrics included a record order intake of 8.3 gigawatts, a 12% year-on-year growth, and an order book valued at €12.8 billion. For 2025, Nordex expects sales between €7.4 billion and €7.7 billion and an EBITDA margin of 5% to 7%, supported by its strong market position, especially in Europe and the Americas.
In summary, Nordex AG’s earnings call reflected a positive sentiment, driven by record order intake and robust financial performance. Despite facing challenges in installation rates and the U.S. market, the company remains optimistic about its future, supported by a solid order book and improving margins. Key takeaways include strong growth in the service business, sustainability achievements, and a positive outlook for 2025.