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Nordex With Strong First Quarter And Operating Profit - Full-Year Guidance For 2024 Confirmed

Hamburg, Germany - Wind turbine manufacturer Nordex has closed the first quarter of 2024 with solid sales growth and an operating profit. Nordex sees itself well on the way to more stable results, the Nordex share climbs by more than 8 percent to around EUR 15.70 in early trading.

A stable cost environment, high order intake and projects with higher profitability are the basis for a successful start to 2024 for the Nordex Group. After years of high fluctuations, the Management Board expects a more stable earnings and margin trend in the current year.

Nordex with Q1 profit after previous year's quarterly loss

The Nordex Group generated sales of EUR 1.574 billion from January to March 2024 (Q1 2023: EUR 1.217 billion), an increase of 29 percent.

Earnings before interest, taxes, depreciation and amortization (EBITDA) amounted to EUR 52.1 million in the first quarter of 2024 (Q1 2023: minus EUR 114.9 million), resulting in an EBITDA margin of 3.3% (Q1 2023: minus 9.4%).

Positive operating performance in the Projects and Service segments

Nordex was able to increase sales in both the Projects and Service segments. The main driver was the Projects segment. In the first quarter of 2024, the Nordex Group installed a total of 227 wind turbines in 13 countries with a total capacity of 1,103 MW (Q1 2023: 276 turbines, 1,319 MW). Of the installed capacity (in MW), 71 percent was attributable to Europe, 19 percent to Latin America and 10 percent to the rest of the world. Q1 revenues in the Projects segment increased sharply by 32.3 percent to EUR 1.413 billion (Q1 2023: EUR 1.068 billion).

Nordex was also able to continue its positive performance in the Service segment, although the increase in sales here was significantly lower at 9.3 percent to EUR 166 million (Q1 2023: EUR 152 million).

Strong increase in order intake

Order intake (excluding the Service segment) grew to EUR 1.765 billion (Q1 2023: EUR 917 million), while nominal output climbed to a total of 2,086 MW (Q1 2023: 1,021 MW). The orders were placed in eleven countries, with the largest individual markets (in MW) being Germany, South Africa and Lithuania.

At the end of the quarter, the order backlog in the Projects segment rose to EUR 7.3 billion at the end of March 2024 (Q1 2023: EUR 6.5 billion). In the Service segment, the order backlog increased from EUR 3.4 billion to EUR 3.8 billion, resulting in a total order backlog for both segments of EUR 11.1 billion (Q1 2023: EUR 9.9 billion).

Nordex confirms guidance for 2024

José Luis Blanco, Chief Executive Officer (CEO) of the Nordex Group: “Overall, we have made a strong start on our path towards improving our margins and achieving more stable results. We have executed projects with higher profitability and found a stable cost environment, meaning that we have significantly improved our performance compared to the previous year. After several years of high volatility and fluctuations, we now expect a more stable earnings and margin trend over the course of the year.”

Nordex confirms its 2024 forecast from the beginning of the year, according to which sales are expected to increase to EUR 7.0 to 7.7 billion. Nordex is forecasting an EBITDA margin of between two and four percent.

Source: IWR Online, May 05 2024