Quarterly Figures: Nordex With Sales Growth And Rising Profitability in The First 9 Months

Hamburg, Germany - Wind turbine manufacturer Nordex can look back on a successful business performance in the period from January to September 2024. Nordex significantly increased its sales in the first nine months. Following a loss in the same period of the previous year, the manufacturer is now reporting an operating profit. The share price initially fell sharply yesterday.

The Nordex Group reports a robust financial performance for the first nine months of 2024. The RENIXX Group also believes it is on track in its operating business. According to Nordex, the EBITDA margin for the full year is likely to be closer to the upper end of the margin forecast (forecast 3 to 4 percent). Nordex CEO Jose Luis Blanco believes that the company is well on track to achieve its medium-term margin target of 8 percent.

Sales grow by 14 percent to over EUR 5 billion in the first nine months

Overall, Nordex increased its sales by 14 percent to EUR 5.1 billion in the first three quarters of 2024 (9M 2023: EUR 4.5 billion). Earnings before interest, taxes, depreciation and amortization (EBITDA) improved significantly to EUR 189 million in the first nine months, compared to a loss of EUR -67 million in the previous year.

At the same time, profitability also continued to rise gradually until September and now stands at an EBITDA margin of 3.7 percent (9M 2023: - 1.5 percent). In view of the positive development, Nordex expects the EBITDA margin for financial year 2024 to be closer to the upper end of the forecast range of 3 to 4 percent.

“I am very pleased with the operational progress over the past nine months, demonstrating a consistent increase in profitability each quarter and aligning with our expectations. In the third quarter again, we achieved a positive net profit and a positive free cash flow, showing a consistent and sustainable progress. This puts us on a strong path to further improve profitability and reach our mid-term goal of an 8 percent EBITDA margin,” says José Luis Blanco, CEO of the Nordex Group.

Nordex on track with operating performance

As already announced by Nordex in October, the Group recorded order intake of around 5,100 MW (5.1 GW) in the Projects segment in the first nine months of 2024, compared to around 4,900 MW (4.9 GW) in the same period of 2023. This corresponds to an increase of 4 percent. The total value of the new orders reached EUR 4.6 billion (9M 2023: EUR 4.1 billion). These orders came from 23 countries and cover various turbine variants.

Nordex's order backlog totaled EUR 11.5 billion in September 2024 compared to EUR 10.2 billion in September 2023, of which EUR 6.9 billion (9M 2023: EUR 6.7 billion) was attributable to the Projects segment and EUR 4.6 billion (9M/2023: EUR 3.6 billion) to the Service segment.

From January to September, Nordex installed 944 wind turbines in 24 countries with a total capacity of around 5,000 MW (5.0 GW). In the same period in 2023, 1,090 wind turbines were installed in 24 countries with a total capacity of 5,500 MW (5.5 GW). Of the installations (in MW) in the reporting period, 73 percent were in Europe, 15 percent in Latin America, 7 percent in the “Rest of the World” region and 5 percent in North America.

Nordex share price initially under pressure

Despite the good business figures, Nordex shares initially fell sharply yesterday in the wake of the US election results, dropping to a daily low of EUR 11.67, but then turned around again. At the end of the day, the stock closed down 0.5 percent at EUR 12.32 (closing price, November 7, 2024, Stuttgart Stock Exchange).

Source: IWR Online, Nov 11 2024