Nordex Group reports consistently improving performance in H1/2024, leading to an update of annual guidance 

• Sales increase by 25 percent 
• EBITDA margin improved to 3.4 percent 
• Working capital stable at minus 7.4 percent
• Positive free cash flow of EUR 94 million in Q2 
• EBITDA margin guidance for 2024 tightened to 3.0 to 4.0 percent

The Nordex Group reported robust financial and operational performance for the first half of 2024, with sales increasing by around 25 percent to EUR 3.4 billion (H1/2023: EUR 2.8 billion). Total performance, including changes in inventories, rose by 16 percent to EUR 3.3 billion (H1/2023: EUR 2.8 billion).

Earnings before interest, taxes, depreciation, and amortization (EBITDA) significantly improved to EUR 118.0 million in the first half of 2024 (H1/2023: minus EUR 114.3 million). With an EBITDA margin of 3.4 percent, profitability has stabilized at a level above 3 percent during the first half of 2024 after having reached 3.3 percent already in the first quarter (H1/2023: minus 4.2 percent). In Q2/2024, EBITDA was EUR 65.8 million with a margin of 3.5 percent (Q2/2023: EUR 0.6 million, 0.0 percent).

Given the stable performance in the first half of 2024, the Nordex Group has revised its guidance for the current financial year. The Company now expects an EBITDA margin of 3.0 to 4.0 percent, up from the initial range of 2.0 to 4.0 percent. Expectations for sales remain between EUR 7.0 to 7.7 billion, with capital expenditure of around EUR 175 million. The Working capital ratio is expected to stay below minus 9 percent.

“We have been able to achieve a clear stabilization in our margin development in recent quarters and this positive trend should continue in the future. Against this backdrop, together with our robust order book and stable pricing, we are now narrowing our initial EBITDA guidance range to 3 to 4 percent for the full year” says José Luis Blanco, CEO of the Nordex Group.
 
Operational performance 

In the Projects segment, the Nordex Group recorded order intake of 3.4 GW for H1 2024, up from 2.6 GW in H1/2023. This represents a 27 percent increase, with a total value of new orders reaching EUR 3.0 billion (H1/2023: EUR 2.4 billion). These orders were received from 17 countries and span various turbine variants. As of June 2024, the Nordex Group’s order book stood at EUR 11.0 billion, compared to EUR 9.8 billion in H1/2023. This comprises EUR 6.9 billion (H1/2023: EUR 6.4 billion) in the Projects segment and EUR 4.1 billion (H1/2023: EUR 3.4 billion) in the Service segment.

In the first half of 2024, turbine assembly production reached 3,023 MW, marking a 4.7 percent increase compared to last year (H1/2023: 2,886 MW). Additionally, rotor blade production rose to 2,333, up from 2,224 units in H1/2023. Of these, 718 rotor blades were produced in-house (H1/2023: 506), while 1,615 (H1/2023: 1,718) were sourced from external suppliers.

The Nordex Group successfully installed 592 wind turbines across 20 countries, totaling 3.0 GW in the first six months of 2024, in line with internal planning. This compares to 632 wind turbines in 22 countries with a total output of 3.1 GW in H1/2023. Of the installations carried out in the period under review (in MW), 73 percent were attributable to Europe, 16 percent to Latin America, 2 percent to North America, and 9 percent to the region “Rest of the World”.

Sales in the Projects segment rose by 26 percent to EUR 3.1 billion in the first half of the year, up from EUR 2.5 billion in H1/2023. The Service segment also experienced growth, with sales increasing by 12 percent to EUR 343 million (H1/2023: EUR 305 million).

Key financial figures at a glance

Total assets remained steady at approximately EUR 5.4 billion, consistent with the end of 2023. The equity ratio was 17.9 percent compared to 18.0 percent as of 31 December 2023. As of the reporting date, the Group cash and cash equivalents stood at EUR 747 million (31 December 2023: EUR 926 million), leading to a healthy net cash position of EUR 446 million (31 December 2023: EUR 631 million). The working capital ratio as a percentage of consolidated sales was minus 7.4 percent (31 December 2023: minus 11.5 percent). Free cash flow in the first half of 2024 was minus EUR 160 million (H1/2023: minus EUR 282 million). However, in Q2/2024, Nordex generated a positive free cashflow of EUR 94 million (Q2/2023: minus EUR 167 million) primarily due to positive cashflow from operating activities and working capital.

KeyFacts Energy Industry Directory: Nordex