Nordex (NDX1) AI Stock Analysis

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Nordex

(OTC:NDX1)

Rating:66Neutral

Price Target:

€22.50

▲(2.65% Upside)

Nordex's overall score is driven by positive technical indicators and a strong earnings call performance, indicating growth and market leadership in Europe. However, the high valuation and ongoing challenges in operational efficiency and specific markets, such as the U.S. and Brazil, temper the outlook.

Positive Factors

Cash Generation

Potential cash return to shareholders is seen as a positive factor for Nordex.

Financial Performance

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

Order Momentum

A record order intake for the quarter has been achieved, indicating strong demand.

Negative Factors

Installation Volumes

Nordex's Q1 sales did disappoint, leading to an 11% miss on sales due to lower installation volumes and timing of projects.

Market Targets

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

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

Market Cap

€5.18B

Dividend YieldN/A

Average Volume (3M)700.63K

Price to Earnings (P/E)88.6

Beta (1Y)0.84

Revenue Growth0.04%

EPS GrowthN/A

CountryDE

Employees10,559

SectorIndustrials

Sector Strength84

IndustryIndustrial - Machinery

Share Statistics

EPS (TTM)0.13

Shares Outstanding236,450,360

10 Day Avg. Volume794,084

30 Day Avg. Volume700,627

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)0.00

Price to Sales (P/S)0.00

P/FCF Ratio0.00

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

€22.21

Price Target Upside1.34% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering7

Nordex Business Overview & Revenue Model

Company DescriptionNordex SE, together with its subsidiaries, develops, manufactures, and distributes multi-megawatt onshore wind turbines worldwide. It operates through Projects and Services segments. The company provides project development services, as well as acquires rights and creates the infrastructure required to construct wind power systems at suitable locations. It also offers maintenance and remote monitoring services for wind farms, as well as spare parts, and repair and technical enhancement services for existing turbines. The company was incorporated in 1985 and is headquartered in Hamburg, Germany.

How the Company Makes MoneyNordex generates revenue primarily through the sale of wind turbines and associated services. The company's key revenue streams include the manufacturing and sale of wind turbine systems, as well as maintenance, repair, and operational services provided to wind farm operators. Additionally, Nordex engages in long-term service agreements with clients, ensuring steady income through maintenance contracts. Strategic partnerships and collaborations with energy providers and governments also play a significant role in securing large-scale projects, enhancing Nordex's market presence and revenue potential.

Nordex Earnings Call Summary

Earnings Call Date:Jul 28, 2025

(Q2-2025)

% Change Since: 5.49%|

Next Earnings Date:Nov 04, 2025

Earnings Call Sentiment Positive

The earnings call showcased significant growth in order intake and profitability, indicating a strong market position, especially in Europe. However, challenges in the U.S. and Brazilian markets, along with high warranty provisions, present ongoing obstacles. Overall, the company's performance is positive, with continuous improvement and strong financial metrics.

Q2-2025 Updates

Positive Updates

Significant Order Intake Growth

Turbine order intake reached 2.3 gigawatts in Q2, marking an 82% increase year-over-year, translating to an 83% increase in euro value. The order book grew to EUR 14.3 billion.

Improved Profitability

EBITDA rose by 64% year-over-year, with an EBITDA margin increase of 220 basis points, reaching a 5.8% margin. Net income was reported at EUR 31 million.

Positive Free Cash Flow

Nordex achieved a positive free cash flow of EUR 145 million in Q2 2025, driven by strong operational performance.

Strong Service Business Performance

Service revenues grew by 17% year-over-year, with the EBIT margin reaching 17.7%, and a high fleet availability of 97%.

Market Leadership in Europe

Nordex remains the market leader in Europe, with a strong order intake from Germany, Turkiye, and Latvia.

Negative Updates

Challenges in the U.S. Market

The outlook in the U.S. remains uncertain in the short term due to executive orders impacting the safe harbor provision and order pipeline.

Brazil Market Challenges

The Brazilian market remains challenging with low electricity prices and grid issues affecting project execution.

Legacy Warranty Provisions

Warranty use in Q2 was at its highest, with EUR 85 million, mainly due to final agreements with large customers.

Company Guidance

In the Nordex SE Q2 2025 Results Conference Call, the company reported promising metrics, indicating substantial progress. The turbine order intake reached 2.3 gigawatts, marking an 82% increase, translating to an 83% year-over-year rise in euro value. The EBITDA saw a 64% year-over-year growth, with the margin improving by 220 basis points to reach 5.8%. Net income was reported at EUR 31 million, with a free cash flow of EUR 145 million. The order book expanded to over EUR 14 billion, with a 28% increase in the turbine segment and 32% in services. The service EBIT margin improved to 17.7%, and the company aims for an 18-19% margin within the next year. Nordex anticipates maintaining the momentum with the guidance range set between EUR 7.4 billion to EUR 7.9 billion in sales for 2025, aiming for an 8% EBITDA margin in the medium term. The overall market outlook remains solid, with Europe as a significant contributor, and the company is well-positioned to capture upcoming opportunities.

Nordex Financial Statement Overview

Summary

Nordex has shown resilience in improving its financial performance, with strong revenue growth and positive net income in the TTM period. The cash flow has improved significantly, and the balance sheet is stable. However, operational efficiency remains a challenge, and attention to leverage is necessary.

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

Nordex Technical Analysis

Technical Analysis Sentiment

Positive

Last Price21.92

Price Trends

50DMA

18.53

Positive

100DMA

17.35

Positive

200DMA

14.75

Positive

Market Momentum

MACD

0.98

Negative

RSI

76.05

Negative

STOCH

90.82

Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DE:NDX1, the sentiment is Positive. The current price of 21.92 is above the 20-day moving average (MA) of 20.01, above the 50-day MA of 18.53, and above the 200-day MA of 14.75, indicating a bullish trend. The MACD of 0.98 indicates Negative momentum. The RSI at 76.05 is Negative, neither overbought nor oversold. The STOCH value of 90.82 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DE:NDX1.

Nordex Peers Comparison

Overall Rating

UnderperformOutperform

Sector (63)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NDX1	66 Neutral	€5.18B	88.59	5.96%	―	0.04%	―
Sector *	63 Neutral	$10.64B	16.04	5.48%	2.12%	2.73%	-23.95%
0J9C	―	€1.55B	14.67	4.78%	―	―	―
0MPJ	―	€10.31B	27.25	16.56%	―	―	―
0EXP	―	€3.35B	11.53	12.41%	―	―	―
0LQ4	―	€4.18B	14.62	15.37%	―	―	―
SMEGF	―	$89.95B	90.49	9.35%	―	―	―

* Industrials Sector Average

Performance Comparison

DE:NDX1

Nordex

21.92

8.60

64.56%

GB:0J9C

Durr AG

22.40

2.18

10.78%

GB:0MPJ

GEA Group AG

63.80

25.00

64.43%

GB:0EXP

Jungheinrich

32.68

5.97

22.35%

GB:0LQ4

Krones AG

133.00

18.92

16.58%

SMEGF

Siemens Energy

114.00

87.98

338.12%

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: Jul 30, 2025