Nordex (NDX1) AI Stock Analysis

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Nordex

(XETRA:NDX1)

Rating:68Neutral

Price Target:

€23.50

▲(8.90% Upside)

Nordex's overall stock score is driven by strong financial performance and positive technical indicators, reflecting a stable and improving business trajectory. However, the high P/E ratio suggests potential overvaluation, which is a significant risk factor. The optimistic earnings call further supports the positive outlook, despite some market challenges.

Positive Factors

Cash Flow

Nordex is off to a solid start, surprising positively on profitability and free cash flow.

Company Performance

Nordex reported a solid Q2 print, with a beat across the board.

Order Momentum

Orders came in strong at 2.3GW, taking the project order book to a record €8.85bn, providing solid visibility.

Partnerships

Luxcara has reserved capacity for 19 Siemens Gamesa turbines for its projects.

Negative Factors

Market Targets

A cut to Germany's onshore 2030 target could weigh on the shares.

Political Scrutiny

The deal with Ming Yang had drawn political scrutiny, impacting its potential continuation.

Nordex (NDX1) vs. iShares MSCI Germany ETF (EWG)

Market Cap

$5.10B

Dividend YieldN/A

Average Volume (3M)644.49K

Price to Earnings (P/E)84.6

Beta (1Y)0.80

Revenue Growth0.04%

EPS GrowthN/A

CountryDE

Employees10,559

SectorIndustrials

Sector Strength75

IndustryIndustrial - Machinery

Share Statistics

EPS (TTM)0.13

Shares Outstanding236,450,360

10 Day Avg. Volume519,054

30 Day Avg. Volume644,494

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)N/A

P/FCF RatioN/A

Enterprise Value/Market Cap0.63

Enterprise Value/Revenue0.45

Enterprise Value/Gross Profit2.17

Enterprise Value/Ebitda8.34

Forecast

1Y Price Target

$22.21

Price Target Upside2.92% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering7

Nordex Business Overview & Revenue Model

Company DescriptionNordex SE is a global manufacturer of wind turbines headquartered in Hamburg, Germany. The company operates in the renewable energy sector, focusing on the design, production, and installation of onshore wind turbines. Nordex offers a range of turbine models tailored to different wind conditions and customer needs, and it provides comprehensive services including maintenance and after-sales support to enhance operational efficiency and extend the lifespan of its products.

How the Company Makes MoneyNordex generates revenue primarily through the sale of wind turbines, which includes both the manufacturing and installation of these systems. The company also earns money from long-term service agreements, which provide maintenance and support for the turbines after installation. Key revenue streams include the sale of turbine components, installation contracts, and ongoing service contracts. Additionally, Nordex benefits from strategic partnerships with energy companies and project developers, which help secure large-scale wind farm projects, thereby ensuring a steady flow of income. Factors such as government incentives for renewable energy, increasing global demand for clean energy solutions, and the company's focus on innovation and efficiency in turbine design also contribute significantly to its earnings.

Nordex Earnings Call Summary

Earnings Call Date:Jul 28, 2025

(Q2-2025)

% Change Since: |

Next Earnings Date:Nov 04, 2025

Earnings Call Sentiment Positive

The earnings call highlighted strong order intake growth, improved profitability, and a positive cash flow position, indicating a robust operational performance. However, challenges persist in specific markets like Brazil and the U.S., and there was a significant increase in warranty use related to legacy issues. Overall, the positive aspects outweigh the negative, leading to an optimistic outlook.

Q2-2025 Updates

Positive Updates

Strong Order Intake Growth

Nordex recorded a turbine order intake of 2.3 gigawatts in Q2, which represents an 82% increase in gigawatts and an 83% increase in euro value year-over-year.

Improved Profitability

EBITDA rose by 64% year-over-year, and the EBITDA margin increased by 220 basis points, reaching 5.8%. Net income turned positive at EUR 31 million.

Positive Free Cash Flow

Nordex achieved a free cash flow of EUR 145 million in Q2, driven by strong operational performance.

Service Business Growth

Service revenues grew by 17% year-over-year, with an EBIT margin reaching 17.7%.

Solid Financial Position

The company ended Q2 with a cash position of approximately EUR 1.2 billion and a net cash total of EUR 942 million.

Negative Updates

Challenging Market in Brazil

The market in Brazil remains challenging due to low electricity prices and grid issues, impacting Nordex's business operations there.

Uncertainty in the U.S. Market

The outlook in the U.S. market remains uncertain due to executive orders impacting safe harbor provisions and order pipelines.

Increased Warranty Use

Warranty use in Q2 was at its highest level in years, at EUR 85 million, partly due to legacy issues requiring provisions to be moved to liabilities.

Company Guidance

In the Nordex SE Q2 2025 Results Conference Call, the company reported significant progress, with a turbine order intake of 2.3 gigawatts, reflecting an 82% increase and translating to an 83% year-on-year increase in euro value. The order book reached over EUR 14 billion, with the turbine order book increasing by 28% to EUR 8.9 billion. EBITDA rose by 64% year-over-year, resulting in a 5.8% EBITDA margin, and the Service business achieved an EBIT margin of 17.7%. Nordex generated a positive free cash flow of EUR 145 million, with expectations of maintaining solid free cash flow for the full year 2025. The company remains confident in reaching its sales guidance range of EUR 7.4 billion to EUR 7.9 billion and targets an 8% EBITDA margin in the medium term.

Nordex Financial Statement Overview

Summary

Nordex has demonstrated resilience with strong revenue growth and improved profitability. Cash flow generation is robust, and the balance sheet is stable, though leverage requires attention. Overall, financial performance is on a positive trajectory.

Income Statement

Neutral

The company has shown a positive trend in revenue growth, with the most recent TTM revenue increasing by 10.7% from 2023 to 2024. Gross profit margin improved significantly from 2022 to 2024, though it declined in the latest TTM period. Net income turned positive in the TTM period, indicating improved profitability. However, margins such as EBIT and EBITDA remain relatively low, pointing to challenges in operational efficiency.

Balance Sheet

Neutral

The company has maintained a stable balance sheet with an improving equity position. The debt-to-equity ratio is manageable, and the equity ratio indicates moderate financial stability. However, the overall leverage has been a concern in previous years, and the recent improvement in net debt position is a positive sign.

Cash Flow

Positive

Cash flow from operations has improved markedly, with a substantial increase in free cash flow in the TTM period. The company has managed capital expenditures well, contributing to positive free cash flow growth. The operating cash flow to net income ratio is strong, indicating solid cash generation relative to net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	7.17B	7.30B	6.49B	5.69B	5.44B	4.65B
Gross Profit	1.48B	1.53B	127.81M	486.05M	826.96M	547.36M
EBITDA	385.48M	313.32M	17.16M	-241.65M	60.06M	100.11M
Net Income	60.32M	8.84M	-302.83M	-497.76M	-230.16M	-129.71M
Balance Sheet
Total Assets	5.67B	5.63B	5.42B	4.76B	4.11B	4.41B
Cash, Cash Equivalents and Short-Term Investments	1.25B	1.17B	925.92M	662.06M	792.12M	793.32M
Total Debt	472.80M	500.56M	475.07M	581.89M	487.00M	919.83M
Total Liabilities	4.65B	4.63B	4.44B	3.88B	3.05B	3.64B
Stockholders Equity	1.01B	990.65M	976.60M	878.06M	1.06B	773.53M
Cash Flow
Free Cash Flow	548.76M	265.56M	28.32M	-555.46M	-42.09M	-516.06M
Operating Cash Flow	706.34M	429.75M	161.20M	-350.09M	127.56M	-352.20M
Investing Cash Flow	-126.90M	-159.08M	-139.68M	-163.81M	-152.09M	231.82M
Financing Cash Flow	-45.09M	-37.88M	285.66M	345.53M	62.34M	405.80M

Nordex Technical Analysis

Technical Analysis Sentiment

Neutral

Last Price21.58

Price Trends

50DMA

19.91

Positive

100DMA

18.38

Positive

200DMA

15.46

Positive

Market Momentum

MACD

0.42

Positive

RSI

53.51

Neutral

STOCH

27.78

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DE:NDX1, the sentiment is Neutral. The current price of 21.58 is below the 20-day moving average (MA) of 21.99, above the 50-day MA of 19.91, and above the 200-day MA of 15.46, indicating a neutral trend. The MACD of 0.42 indicates Positive momentum. The RSI at 53.51 is Neutral, neither overbought nor oversold. The STOCH value of 27.78 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for DE:NDX1.

Nordex Peers Comparison

Overall Rating

UnderperformOutperform

Sector (64)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NDX1	68 Neutral	$5.10B	84.59	5.96%	―	0.04%	―
Sector *	64 Neutral	$10.95B	16.10	8.81%	1.99%	2.59%	-16.41%
0J9C	―	€1.56B	14.47	-6.59%	―	―	―
0MPJ	―	€10.16B	26.68	17.92%	―	―	―
0EXP	―	€3.18B	11.27	11.92%	―	―	―
0LQ4	―	€4.20B	14.51	15.37%	―	―	―
SMEGF	―	$84.34B	85.05	9.35%	―	―	―

* Industrials Sector Average

Performance Comparison

DE:NDX1

Nordex

21.58

7.17

49.76%

GB:0J9C

Durr AG

22.13

3.01

15.74%

GB:0MPJ

GEA Group AG

62.85

21.99

53.82%

GB:0EXP

Jungheinrich

31.00

3.71

13.59%

GB:0LQ4

Krones AG

134.20

13.37

11.07%

SMEGF

Siemens Energy

109.97

81.84

290.93%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 20, 2025