In This Article:
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Total Order Book Growth: Increased by 21%.
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Turbine Order Intake: 2.2 gigawatts, up 5% in volume and 12% in euro value year-on-year.
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EBITDA: EUR80 million, up 53% with a 5.5% margin.
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Net Income: EUR8 million.
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Service EBIT Margin: 16.8%, up by 1.7%.
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Free Cash Flow: Positive EUR4 million.
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Sales: Slightly above EUR1.4 billion, down from EUR1.6 billion year-on-year.
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Gross Margin: 27.3%, up from 19.6% in Q1 2024.
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Cash Position: More than EUR1.1 billion.
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Working Capital Ratio: Minus 8.3%.
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Service Revenue Growth: 19%, reaching EUR197 million.
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Installations: Slightly over one gigawatt, down 5% year-on-year.
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Turbine Assembly: Increased by 3%, totaling 1.2 gigawatts.
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Blade Production: Increased by 14%.
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CapEx: EUR25 million in Q1, with a full-year expectation of around EUR200 million.
Release Date: April 25, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Nordex SE (NRDXF) reported a strong start to 2025 with improved margins and positive free cash flow in the first quarter.
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The total order book grew by 21%, with a turbine order intake of 2.2 gigawatts, marking a 12% year-on-year increase in euro value.
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Profitability levels increased across all segments, with total EBITDA rising by 53% to EUR 80 million, translating into a 5.5% EBITDA margin.
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The service order book increased by 37% year-on-year, reaching EUR 5.2 billion, reflecting the expansion of the turbine business.
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Nordex SE (NRDXF) remains confident in achieving positive free cash flow for the full year 2025 and is on track to meet its medium-term EBITDA margin target of 8%.
Negative Points
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Sales in the first quarter of 2025 were slightly above EUR 1.4 billion, down from EUR 1.6 billion in the previous year, due to lower installation levels and timing effects.
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Installations reached slightly over one gigawatt in the first quarter, down around 5% year-on-year, mainly due to customer delays.
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The gross margin, although improved, is influenced by a relatively weak top line, and future quarters may not see the same level of gross margin.
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There are concerns about potential local inflation impacts on the supply chain due to tariffs, which could affect local execution costs.
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The company faces challenges in the US market due to tariffs and geopolitical uncertainties, impacting order intake and timing.
Q & A Highlights
Q: Can you explain the assumptions behind the strong service order and revenue growth, and whether inflation has played a significant role? A: Jose Luis Blanco, CEO: The growth in service revenue is driven by three main factors: renewal rates on existing contracts, inflation on the backlog, and order intake in the turbine business. We prefer to guide conservatively, considering inflation is difficult to predict. However, with the current pace of order intake, we are confident in achieving double-digit growth in the service business.