- Record Order Intake: Achieved 10.2 gigawatts, reflecting strong market demand and operational scalability.
- EBITDA Margin Improvement: Reached 8.4% in Q4 2025, with target upgraded to 10-12% for midterm via efficiency and service growth.
- Free Cash Flow Strength: Generated EUR 863 million, supported by working capital optimization and EUR 1.9 billion cash reserves.
- Service Business Growth: Service revenue hit EUR 240 million with a 19% EBIT margin, underscoring operational predictability.
- Shareholder Returns Policy: Introduced EUR 50 million minimum annual return, balancing capital deployment and balance sheet resilience.
Financial Highlights
The company's financial foundation was strengthened, with a cash position of EUR 1.9 billion and a working capital ratio of minus 12.4%. The company's guidance for 2026 includes sales between EUR 8.2 billion and EUR 9 billion, and an EBITDA margin range of 8-11%. The company's upgraded midterm EBITDA margin ambition to 10-12% is driven by continued volume growth, operating leverage, and further margin improvement via efficiency measures. As Jose Luis Blanco mentioned, "we are committed to long-term investments in the market and have been successful in [GECA 4]."
Valuation Metrics
Nordex's current valuation metrics indicate a Price-to-Sales Ratio of 1.39, an EV/EBITDA of 20.4, and a Free Cash Flow Yield of 5.51%. The company's ROE stands at 10.65%, and the Net Debt to EBITDA ratio is -1.84, indicating a strong financial position. The current valuation multiples suggest that the market is pricing in a certain level of growth, with analysts estimating revenue growth at 7.5% for next year.
Outlook and Guidance
Nordex expects growth in production and installation in 2026, despite being cautious about selling and revenue margins. The company is well-positioned to take advantage of opportunities in Germany, with a strong market position and a favorable outlook for the market. The introduction of a shareholder return policy, targeting a minimum annual shareholder return of EUR 50 million, is a positive step towards returning value to shareholders.
Key Risks and Challenges
The company's guidance highlights potential risks, including substantial delays in order intake, delays due to customers or permits, and disruptions in the supply chain. The U.S. market is also seen as a potential risk, although the company is hopeful about growth. The company's ability to maintain its margin targets and achieve its growth ambitions will be crucial in driving shareholder value.