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Investing.com -- Nordex Group (ETR:NDXG)’s strong Q2 results propelled its stock up 4% on Monday, following a jump in new project orders and significant improvements in profitability.
The Hamburg-based wind turbine manufacturer secured 2.3 gigawatts in new project orders, marking an 81.7% increase from Q2 2024. This translated into a total order value of €2.2 billion, a 45.6% year-on-year growth.
The company exceeded expectations in key financial metrics. Sales totaled €1.87 billion, up 0.7% year-over-year.
EBITDA surged 64% to €108 million, surpassing analyst consensus of €102 million, with the EBITDA margin rising to 5.8% from 3.5% in the previous year.
Net profit rose significantly to €31 million, up from €0.5 million in Q2 2024, exceeding the Jefferies consensus of €26.4 million.
Nordex’s service segment showed strong performance, with revenues increasing 17% to €207 million and an EBIT margin of 17.7%, contributing €37 million to EBIT.
Free cash flow grew by 54.4% to €145 million, driven by lower capital expenditures and stronger results, despite a working capital outflow.
Jefferies analysts noted the strong FCF as a positive surprise and anticipate a potential increase to over €200 million in the second half of the year.
The company’s order book reached a record €8.85 billion at the end of June 2025, up from €6.89 billion the previous year.
Project intake for 2025 was 2.310 gigawatts, an 82% increase compared to 2024, with a Book to Bill ratio of 1.4x.
The average selling price (ASP) rose 1% year-over-year and 12% quarter-on-quarter to €0.97 million per megawatt.
Nordex is optimistic that 2025 orders will exceed 2024’s 8.3 gigawatts, with Europe expected to be a key contributor.
Net cash increased to €942 million from €824 million in Q1 2025, reflecting a solid liquidity position.
The equity ratio remained stable at 18%. Despite a 14.4% drop in turbine production to 1,586 megawatts, rotor blade production rose 8.1%, with 1,399 units manufactured in-house.
Nordex installed 337 wind turbines across 16 countries, totaling 1,959 megawatts, with 87% of the installations in Europe.
Jefferies analysts maintained their "buy" rating for Nordex (NDX1 GR) with a price target of €21, offering a potential 1% upside from the stock’s July 25 closing price.
The 52-week range for the stock is €10.48 to €20.78. Analysts will look for more information on order momentum, profitability in the second half of 2025, provision outflows, and capital allocation during the company’s afternoon conference call.
Nordex has confirmed its full-year 2025 guidance, forecasting revenues between €7.4 billion and €7.9 billion, with a midpoint estimate of €7.71 billion.
The company projects an EBITDA margin of 5% to 7%, or €459 million at the midpoint.
Risks include potential changes in government support policies, production development, competition, and currency and interest rate fluctuations.