On Monday, German wind turbine manufacturer Nordex raised its expectations for the year's operating profit (EBITDA margin) from 5-7 percent to 7.5-8.5 percent.
The upward adjustment is based on preliminary results for the third quarter, in which the company delivered an EBITDA of 136 million euros with a margin of 8 percent, compared to 72 million euros and 4.3 percent the year before. The upward adjustment was well received by the market and on Tuesday the share rose by more than 22 percent.
Nordex highlights solid operations in both the project department and the service business as well as a stable macroeconomic environment as explanations for the improved earnings. Revenue in the quarter is expected to be around 1,706 million euros - about the same as the year before - while the company has increased its liquidity to 1,378 million euros and generated a free cash flow of 298 million euros in the first nine months of the year.
- Our teams have delivered strongly in the third quarter, and the results show the strength of our execution on both the project and service sides. We continue to expect a significant improvement in earnings compared to 2024 and maintain focus on profitable growth, said José Luis Blanco, CEO of Nordex Group, in connection with the upgrade.
Can Vestas follow suit?
Nordex will present its final quarterly financial statements on November 4. It is the same day that Vestas presents its and, according to investment economist Per Hansen from Nordnet, it is now Vestas' turn to show whether the company can follow suit when the financial statements are published.
- Nordex has a more geographical and narrower focus than Vestas. Nordex does not earn more than Vestas expected and going forward.
- Everyone is focused on the share price, which for Vestas has been disappointing. On the other hand, there has been no focus on the comparison with Nordex, writes the economist in a comment according to Ekstra-Bladet.
On Tuesday, Vestas was pleased to be drawn to the positive measures from Nordex, which spread optimism in the sector.
- Vestas stands out after a super good financial report from Nordex. The reports from Nordex increase optimism that Vestas can also come up with a good financial report, says senior equity advisor Martin Munk from Jyske Bank to MarketWire.
However, Jyske Bank warns against expecting a similar upward adjustment from the Danish wind turbine manufacturer.
- We are a little cautious about drawing parallels to the financial report from Nordex. We do not expect any upward adjustment from Vestas in connection with the accounts - quite the opposite, as higher costs in connection with the series production of the new offshore wind turbine are expected to pull down, says Martin Munk.
Jyske Bank's Vestas analyst, Janne Vincent Kjær, therefore expects Vestas to lower its forecast range for the operating margin, EBIT, to 4-6 percent from 4-7 percent.
On Wednesday, Nordex and Vestas opened with a decline of 2.58 and 0.98 percent, respectively.
Text, graphics, images, sound, and other content on this website are protected under copyright law. DK Medier reserves all rights to the content, including the right to exploit the content for the purpose of text and data mining, cf. Section 11b of the Copyright Act and Article 4 of the DSM Directive.
Customers with IP agreements/major customer agreements may only share Danish Offshore Industry articles internally for the purpose of handling specific cases. Sharing in connection with specific cases refers to journaling, archiving, or similar uses.
Customers with a personal subscription/login may not share Danish Offshore Industry articles with individuals who do not themselves have a personal subscription to Danish Offshore Industry.
Any deviation from the above requires written consent from DK Medier.
