Nordex (NDX1) Q2 2024 earnings summary

Executive summary

• Sales rose 25% year-over-year to EUR 3.4 billion in H1 2024, with EBITDA margin improving to 3.4% from -4.2% and gross margin reaching 19.5%.

• Order intake increased 27% to over 3.4 GW, with stable pricing at EUR 0.89 million per MW and installations at 3 GW, matching last year's level.

• Liquidity stood at EUR 827 million at period end, and free cash flow turned positive in Q2.

• Net loss narrowed significantly to EUR 12.6 million from EUR 298.9 million, and EPS improved to EUR -0.05 from EUR -1.34.

• U.S. re-entry plan finalized, including reopening the Iowa plant and launching a U.S.-tailored turbine.

Financial highlights

• EBITDA reached EUR 118 million in H1, compared to -EUR 114 million last year; Q2 EBITDA was EUR 66 million (3.5% margin).

• EBIT margin improved to 0.8% from -7.5% last year; net loss narrowed to EUR 13 million from EUR 299 million.

• Working capital ratio stood at -7.4% at Q2 end, in line with expectations.

• CapEx was EUR 70 million in H1, focused on production facilities and U.S. expansion.

• Net cash at EUR 446 million; equity ratio stable at 17.9%.

Outlook and guidance

• EBITDA margin guidance tightened to 3%-4% for 2024, up from initial 2%-4%, with sales expected between EUR 7.0–7.7 billion.

• Midterm EBITDA margin target of 8% remains, contingent on stable market and price discipline.

• Working capital ratio expected below -9% for 2024; CapEx guidance confirmed at EUR 175 million.

• Expect higher installation run rates in H2, with Q3 as the record quarter and Q4 slightly lower.