Nordex Group reports consistently improving performance in H1/2024, leading to an update of annual guidance
Hamburg, Germany - Nordex has presented its financial figures for the first half of 2024. Overall, the wind turbine manufacturer reports a robust financial and operating performance for the first six months. Nordex is adjusting its EBITDA margin forecast for 2024. The share benefits and is one of the few stocks in the RENIXX to gain in the morning.
Sales climb by 25 percent to around EUR 3.4 billion
Nordex generated sales of EUR 3.4 billion in the first half of the year, an increase of around 25 percent on the same period of the previous year (H1 23: EUR 2.8 billion). The Projects segment accounted for the majority of sales with an increase of 26% to EUR 3.1 billion (H1 23: EUR 2.5 billion). Nordex also recorded growth in the Service segment, where sales rose by 12 percent to EUR 343 million (H1 23: EUR 305 million).
The operating result EBITDA (earnings before interest, taxes, depreciation and amortization) improved significantly to EUR 118.0 million in the first half of 2024 (H1 23: minus EUR 114.3 million). With an EBITDA margin of 3.4%, profitability stabilized at a level of over 3% in the first half of 2024, having already reached 3.3% in the first quarter (H1/2023: -4.2%). In the second quarter of 2024, EBITDA amounted to EUR 65.8 million with an EBITDA margin of 3.5 percent (Q2/2023: EUR 0.6 million and 0.0 percent).
Nordex adjusts forecast for 2024
Due to the positive development in the first half of 2024, Nordex has adjusted its forecast for the full year. The company now expects an EBITDA margin of 3.0 to 4.0 percent, which is above the original range of 2.0 to 4.0 percent. Sales are still expected to be between EUR 7.0 and 7.7 billion, with investments of EUR 175 million. The working capital ratio in relation to Group sales is expected to be below minus 9%.
“We have been able to achieve a clear stabilization in our margin development in recent quarters and this positive trend should continue in the future. Against this backdrop, together with our robust order book and stable pricing, we are now narrowing our initial EBITDA guidance range to 3 to 4 percent for the full year,” commented Nordex CEO José Luis Blanco on the figures.
Operational development - wind turbines installed in 20 countries
In the Projects segment, Nordex recorded an order intake of 3.4 GW from January to June 2024, compared to 2.6 GW in the first half of 2023. This corresponds to an increase of 27 percent, with the total value of new orders reaching EUR 3.0 billion (H1 23: EUR 2.4 billion). The Nordex Group's order backlog amounted to EUR 11.0 billion in June 2024, compared with EUR 9.8 billion in the first half of 2023, of which EUR 6.9 billion (H1 23: EUR 6.4 billion) was attributable to the Projects segment and EUR 4.1 billion (H1 23: EUR 3.4 billion) to the Service segment.
In the first half of 2024, turbine assembly production reached 3,023 MW, which corresponds to an increase of 4.7% compared to the previous year (H1 23: 2,886 MW). Rotor blade production also increased from 2,224 units in H1 2023 to 2,333. 718 of these rotor blades were produced in-house (H1 23: 506), while 1,615 (H1 3: 1,718) were sourced from external suppliers.
In the first six months of 2024, the Nordex Group installed 592 wind turbines in 20 countries with a total capacity of 3.0 GW in line with internal planning. In the first half of 2023, it installed 632 wind turbines in 22 countries with a total capacity of 3.1 GW. Of the installations made in the reporting period (in MW), 73% were in Europe, 16% in Latin America, 2% in North America and 9% in the “Rest of the world” region.
Nordex stock performs strongly in 2024
In a generally rather weak stock market environment, Nordex shares rose by 2.34 percent to EUR 13.57 this morning (12:30 p.m., July 25, 2024, Stuttgart Stock Exchange). Since the turn of the year, this represents a price increase of around 30 percent. The Nordex share is thus one of the best-performing RENIXX stocks of 2024 to date.
Source: IWR Online, Jul 07 2024