Nordex SE (NRDXF) Q3 2024 Earnings Call Highlights: Strong Financial Performance Amid Market ...

In This Article:

  • Order Intake: 5.1 gigawatts in the first three quarters of 2024, up from 4.9 gigawatts last year.

  • Average Selling Price: EUR0.9 million per megawatt, stable compared to EUR0.85 last year.

  • Installations: Approximately 5 gigawatts year-to-date, slightly lower than the previous year.

  • Gross Margin: Improved to 21.6% in Q3 2024 from 18.3% in Q3 2023.

  • EBITDA Margin: 3.7% for the first nine months of 2024, up from negative 1.5% in the same period last year.

  • EBITDA: EUR190 million in the first nine months of 2024.

  • Free Cash Flow: EUR160 million at the end of Q3 2024, break-even year-to-date.

  • Liquidity: EUR962 million at the end of Q3 2024.

  • Sales Revenue: Increased by 14% to EUR5.1 billion in the first nine months of 2024.

  • Service Revenue: Grew by 13% to EUR543 million in the first nine months of 2024.

  • Order Book: EUR11.5 billion at the end of September 2024.

  • Service Order Book: Increased by 29% year-on-year to EUR4.6 billion.

  • Cash Level: EUR882 million at the end of Q3 2024.

  • Working Capital Ratio: Minus 7.3% in Q3 2024.

  • Net Cash: Improved to EUR583 million.

  • Equity Ratio: 18.5% at the end of Q3 2024.

Release Date: November 07, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • Nordex SE (NRDXF) reported a stable pricing environment with an average selling price of EUR 0.9 million per megawatt, indicating strong market demand.

  • The company achieved a significant improvement in gross margins, reaching 21.6% in Q3 2024 compared to 18.3% in the same period last year.

  • Nordex SE (NRDXF) ended the quarter with a healthy liquidity level of EUR 962 million, reflecting strong financial management.

  • The order book remains robust at EUR 11.5 billion, with a notable increase in service order book by 29% year-on-year.

  • The company is on track to achieve its midterm EBITA margin target of 8%, supported by a stable market environment and strong order intake pipeline.

Negative Points

  • Total installations in 2024 are expected to be slightly lower than in 2023, indicating potential challenges in scaling operations.

  • The company faces geopolitical uncertainties, such as potential changes in the US and German political landscapes, which could impact future market dynamics.

  • Legacy projects continue to affect profitability, with some projects having lower than average profitability.

  • There is ongoing competition from Chinese manufacturers in certain markets, which could pressure pricing and market share.

  • Provisions related to legacy products have increased, reflecting ongoing challenges in resolving past issues and impacting financial performance.