Nordex (NDX1) AI Stock Analysis

• Market Cap: €10.21B
• Dividend Yield: N/A
• Average Volume (3M): 477.62K
• Price to Earnings (P/E): 37.2
• Beta (1Y): 0.71
• Revenue Growth: 1.27%
• EPS Growth: 384.94%
• Country: DE
• Employees: 10,559
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): 0.78
• Shares Outstanding: 236,450,360
• 10 Day Avg. Volume: 562,042
• 30 Day Avg. Volume: 477,622
• PEG Ratio: <0.01
• Price to Book (P/B): 5.39
• Price to Sales (P/S): 0.91
• P/FCF Ratio: 8.16
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: €31.78
• Price Target Upside: -26.36% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 10
• EPS Forecast (FY): 1.64
• Revenue Forecast (FY): €8.55B

• Rating: 70 Outperform
• Price Target: €47.00 ▲(8.90% Upside)
• Action: Reiterated Date: 02/28/26
• Date: Action: Reiterated 02/28/26

The score is driven primarily by the strong financial inflection—profits and cash generation improved materially—supported by bullish trend indicators. The main offsets are a relatively expensive valuation (P/E ~37) and technically overbought momentum signals, while the earnings call was constructive due to upgraded margin guidance but flagged uncertainties for 2026 and certain markets.

Positive Factors

Free cash flow strength

Nordex's material step-up in operating cash flow and ~€844M free cash flow in 2025 indicates earnings are reliably converting to cash. Durable FCF supports capex, LTSA investments, working capital flexibility and balance-sheet repair, reducing financing risk over coming quarters.

Improved margins and profitability

Upgraded EBITDA guidance and quarter-over-quarter margin expansion reflect structural execution improvements and pricing discipline. Sustained higher EBIT margins enhance internal funding for growth, improve resilience to cyclical demand and increase likelihood of lasting profitability gains.

Service segment recovery

A faster-than-expected recovery in services strengthens recurring, higher-margin revenue via LTSAs and aftermarket sales. Growing service income improves revenue visibility, reduces reliance on new-turbine cycles and supports long-term margin stability and customer retention.

Negative Factors

Net margin still modest

Despite the turnaround, net margin is still low relative to revenue scale and prior volatility. Sustaining improved margins requires consistent execution, stable pricing and cost control; any demand softness or execution slips could quickly erode recent profitability gains.

Order intake uncertainty

Uncertain future order volumes weaken revenue visibility and planning for manufacturing capacity and supply commitments. Prolonged order volatility can inflate working capital needs, depress utilization and make it harder to sustain margin and cash-generation improvements long term.

Regulatory & supply-chain risks

Exposure to CBAM, steel quotas and other trade/regulatory shifts can raise component costs, constrain inputs and lengthen project timelines. These structural pressures increase margin risk and may require higher prices or investment in supply-chain resilience, pressuring returns.

Nordex Business Overview & Revenue Model

Company Description

Nordex 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 Money

Nordex generates revenue primarily through the sale of wind turbines and associated services. The company's revenue model is built around several key streams: direct sales of wind turbine systems to energy producers and utility companies, long-term service agreements (LTSA) that provide ongoing maintenance and operational support, and project financing solutions. Significant partnerships with energy developers and governments enhance its market reach and create large-scale projects that drive sales. Additionally, Nordex benefits from incentives and subsidies related to renewable energy production, which can augment its earnings in various markets.

Nordex Financial Statement Overview

Summary

Strong turnaround with sharply improved profitability and materially higher margins in 2024–2025, supported by a major step-up in operating and free cash flow. Key risks are the relatively modest net margin versus revenue scale and a history of losses/cash-flow volatility earlier in the cycle.

Income Statement

Nordex shows a clear earnings turnaround: after sizable losses in 2021–2023, profitability improved sharply in 2024 and accelerated in 2025 with net income rising to ~€274M. Revenue has grown consistently each year (mid-single-digit growth in 2025 after stronger growth earlier), and margins expanded materially—gross margin improved from ~2% (2023) to ~27% (2025), and net margin improved from negative levels to ~3.6% (2025). The main weakness is that profitability only recently normalized, and net margin remains relatively modest for the revenue base, suggesting execution and cost pressures could still be a risk in a weaker demand environment.

Balance Sheet

Leverage looks manageable and improving: debt relative to equity is around ~0.49 in 2025 (similar to 2024 and better than the higher leverage seen in 2020), which provides reasonable balance-sheet flexibility. Equity has grown versus 2022–2024, but a key watch item is that returns on shareholder capital were deeply negative in prior years and only recently turned profitable, indicating the balance sheet has been through a difficult cycle. Total assets expanded meaningfully in 2025, which can support scale, but also raises the need for sustained profitability and efficient asset use going forward.

Cash Flow

Cash generation strengthened substantially: operating cash flow rose to ~€1.02B in 2025 (from ~€430M in 2024), and free cash flow increased to ~€844M with strong year-over-year growth. Free cash flow is healthy relative to earnings (about ~83% of net income in 2025), indicating earnings are translating into cash. The main weakness is that cash flow was volatile earlier in the period (notably negative operating and free cash flow in 2020 and 2022), so the durability of the recent step-up is the key factor to monitor.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	7.55B	7.30B	6.49B	5.69B	5.44B
Gross Profit	2.04B	1.53B	127.81M	486.05M	826.96M
EBITDA	2.04B	313.32M	13.10M	-241.65M	60.06M
Net Income	274.30M	8.84M	-302.83M	-497.76M	-230.16M
Balance Sheet
Total Assets	8.44B	5.63B	5.42B	4.76B	4.11B
Cash, Cash Equivalents and Short-Term Investments	1.93B	1.17B	925.92M	662.06M	792.12M
Total Debt	627.99M	500.56M	475.07M	581.89M	487.00M
Total Liabilities	7.16B	4.63B	4.44B	3.88B	3.05B
Stockholders Equity	1.28B	990.65M	976.60M	878.06M	1.06B
Cash Flow
Free Cash Flow	844.14M	265.56M	28.32M	-555.46M	-42.09M
Operating Cash Flow	1.02B	429.75M	161.20M	-350.09M	127.56M
Investing Cash Flow	-153.00M	-159.08M	-139.68M	-163.81M	-152.09M
Financing Cash Flow	-43.53M	-37.88M	285.66M	345.53M	62.34M

Nordex Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 43.16
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: 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 43.16 is above the 20-day moving average (MA) of 35.27, above the 50-day MA of 33.12, and above the 200-day MA of 24.73, indicating a bullish trend. The MACD of 2.38 indicates Negative momentum. The RSI at 80.84 is Negative, neither overbought nor oversold. The STOCH value of 86.09 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
KRN	75 Outperform	€4.06B	14.07	14.99%	1.95%	8.15%	16.17%
ENR	74 Outperform	$138.31B	74.32	18.39%	―	13.38%	22.22%
JUN3	73 Outperform	€3.27B	11.50	11.92%	2.29%	-1.50%	2.01%
NDX1	70 Outperform	€10.21B	37.18	10.44%	―	1.27%	384.94%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
G1A	61 Neutral	€10.40B	26.56	17.71%	2.01%	2.26%	6.49%
DUE	54 Neutral	€1.63B	-51.19	-7.86%	3.12%	-18.21%	-137.62%