Nordex (NDX1) Q3 2024 earnings summary

Executive summary

• Sales increased 14% year-over-year to €5.1 billion for the first nine months of 2024, with order intake at 5.1 GW and stable pricing at €0.9 million per MW.

• EBITDA margin improved to 3.7% for the nine months, with Q3/2024 EBITDA margin at 4.3%.

• Free cash flow reached breakeven for the nine months, with expectations for material positive free cash flow by year-end.

• Installations normalized to 5 GW year-to-date, slightly below last year due to catch-up effects in 2023.

• 2024 EBITDA margin expected near the top end of guidance; midterm 8% EBITDA margin target reaffirmed.

Financial highlights

• Sales rose to €5,105 million (+14% YoY); gross profit up 68.8% to €1,030 million.

• EBITDA at €189 million (vs. -€67 million YoY); EBIT at €55 million (vs. -€205 million YoY); net loss narrowed to -€8.7 million (from -€334 million YoY).

• Gross margin at 20.2% (nine months), 21.6% (Q3/2024), up from 13.6% and 18.3% respectively last year.

• Free cash flow at breakeven for the nine months; cash flow from operating activities at €111.8 million.

• Liquidity at €962 million at quarter-end, with net cash at €583 million.

Outlook and guidance

• Full-year EBITDA margin expected at the top end of guidance, despite higher legacy order share in Q4.

• 2024 sales guidance confirmed at €7.0–7.7 billion; EBITDA margin guidance 3.0–4.0%.

• Midterm EBITDA margin target of 8% reaffirmed, contingent on stable market and pricing.

• Order intake for the full year expected to be at least similar or higher than last year.

• Working capital ratio expected below -9% for 2024; CAPEX for FY/2024 around €175 million.