thyssenkrupp nucera (NCH2) investor relations material

Executive summary

• Sales and EBIT guidance for FY 2024/25 were raised following a solid nine-month performance, with key project milestones such as 80% completion of the NEOM green hydrogen plant and new contracts in Europe and India.

• Achieved significant technology expansion through the acquisition of Green Hydrogen Systems technology and the launch of the SOEC pilot production plant in Germany.

• Order intake dropped sharply in Q3, mainly due to a 94% fall in green hydrogen orders, while the core alkali segment order intake remained stable.

• Paid engineering contracts totaling 1.5 GW in Europe are expected to convert to firm orders in 6–12 months, supporting a substantial order backlog of approximately EUR 0.7 billion.

• Workforce increased by 149 employees year-over-year, reaching 1,093.

Financial highlights

• Q3 sales declined 22% year-over-year to EUR 184 million, reflecting high prior-year base and project completion; nine-month sales rose 9% to EUR 663 million.

• Q3 EBIT was flat at EUR 0 million; nine-month EBIT improved to EUR 4 million from EUR -13 million.

• Net income for Q3 was -EUR 2 million; nine-month net income was EUR 4 million, with EPS at EUR 0.04.

• Free cash flow improved to EUR 50 million for the nine-month period, up from -EUR 57 million prior year.

• Gross margin in Q3 was 14%, up from 11% prior year; 9M gross margin up 26% to EUR 76 million.

Outlook and guidance

• Full-year group sales expected between EUR 850–920 million; EBIT guidance raised to EUR -7 million to +7 million.

• Green hydrogen segment sales expected at EUR 450–510 million, EBIT at -EUR 75 to -EUR 55 million; core alkali segment sales at EUR 380–420 million, EBIT at EUR 55–75 million.

• Order intake in Q4, especially for green hydrogen, expected to remain subdued due to timing of FIDs and project delays.

• Outlook based on execution of contracted projects and market conditions.