• Revenue: EUR7.3 billion in 2024, up from EUR6.5 billion in 2023, an increase of over 12%.
• EBITDA Margin: 4.1% for 2024, with an exit EBITDA margin of 4.89% in Q4.
• Net Profit: EUR9 million for 2024.
• Free Cash Flow: EUR271 million in 2024.
• Order Book: Record high of EUR12.8 billion, with turbine order book at EUR7.8 billion and service order book at nearly EUR5 billion.
• Service Revenue: Grew by 15% to EUR777 million in 2024.
• Gross Margin: 21% for full year 2024, up from 15.2% in the previous year.
• Cash Position: Over EUR1.1 billion at year-end 2024.
• Working Capital Ratio: Minus 9.1%, in absolute numbers at minus EUR663 million.
• CapEx Spending: EUR153 million for 2024.
• Order Intake: 8.3 gigawatts in 2024, a growth of 12% year on year.
• Installation Figures: 6.5 gigawatts installed in 2024, down by around 8% from the previous year.

• Warning! GuruFocus has detected 7 Warning Signs with NRDXF.

Release Date: February 27, 2025

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

Positive Points

• Nordex SE (NRDXF) achieved a record order intake in 2024, resulting in a high order book of EUR12.8 billion.
• The company reported a robust free cash flow of EUR271 million for 2024.
• Nordex SE (NRDXF) improved its EBITDA margin to 4.89% by the end of 2024.
• The service business continues to grow, with revenues increasing by 15% and EBIT margins improving.
• Nordex SE (NRDXF) remains the third largest onshore player worldwide in terms of order intake, excluding China.

Negative Points

• Installations decreased by 8% in 2024, primarily due to customer schedule delays.
• Turbine assembly decreased by 5% in 2024, indicating potential production challenges.
• The company faces uncertainties in the US market, which could impact future growth.
• Despite improvements, the EBITDA margin of 4.1% is still below the medium-term target of 8%.
• There are ongoing provisions and warranty issues that may impact financials in the coming years.

Q & A Highlights

Q: What regions outside of Germany should we focus on for order intake growth? A: Jose Blanco Dieguez, CEO, mentioned that while Germany is expected to grow significantly, there is also anticipated growth in other European markets such as the Baltics, Turkey, Spain, and the Mediterranean. Outside Europe, Canada and Australia are key focus areas, with ambitions to develop the US market further.

Q: How sustainable is the growth in service orders seen in Q3 and Q4? A: Jose Blanco Dieguez, CEO, expressed optimism for another strong year in service order intake, potentially better than the previous year, although they do not provide specific guidance for order intake.

Q: What are the implications of the clean industrial deal announced recently? A: Jose Blanco Dieguez, CEO, highlighted that the deal supports homemade energy production, emphasizing renewables and electrification. It includes financial instruments to support faster electrification and initiatives to improve permitting processes, which are positive for Nordex's business and industry.

Q: Can you provide insights into the expected order intake and its impact on ASPs and visibility into 2027? A: Jose Blanco Dieguez, CEO, stated that while they do not guide order intake, they expect to improve on the 8.3 gigawatts achieved last year. ASPs are stable, and the German market's growth should provide visibility into 2027, with expected order intake translating into deliveries in 2026 and 2027.

Q: What are the key factors driving the EBITDA margin guidance of 5% to 7% for 2025? A: Jose Blanco Dieguez, CEO, and Ilya Hartmann, CFO, explained that the absence of legacy projects and a decrease in provisions will contribute to margin improvements. The biggest uncertainty is order intake and its impact on revenue and margins, but they expect stable execution.

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