Nordex Financials 2021: Sales Up - Losses Increased - Outlook Positive
Hamburg, Germany - The Nordex Group has presented its annual financial statements and confirmed the preliminary results. For 2022, the Management Board continues to assume a difficult market environment. In terms of sales and operating margin, Nordex aims to reach or improve on the 2021 level in 2022. The stock climbs.
Nordex meets adjusted forecast for 2021
In its 2021 financial statements, the Nordex Group confirmed the preliminary results published on March 9, 2022. Consolidated sales rose by a strong 17 percent to EUR 5.4 billion (2020: EUR 4.7 billion). The Projects segment increased its sales by 18.2 percent to EUR 4.987 billion (2020: EUR 4.217 billion), while the Service segment grew by 6.9 percent to EUR 468 million (2020: EUR 438 million). Service thus accounted for 8.6 percent of total sales.
Earnings before interest, taxes, depreciation and amortization (EBITDA) of 52.7 million euros were impacted by high costs for raw materials and, above all, sea freight, while the previous year was positively influenced by the sale of the European project development business (2020: 94 million euros). At 1.0 percent, the EBITDA margin was at the expected level, but down on the previous year (2020: 2.0 percent). Due to the explosive increase in costs for raw materials and transport services, especially towards the end of the year, the originally planned improvement in margins could not be realized in 2021, Nordex said. Overall, Nordex reported a loss of EUR 230.2 million (2020: EUR - 129.7 million).
As of the balance sheet date 2021, the Group's equity ratio was 25.9 percent (December 31, 2020: 17.5 percent). The significant improvement is mainly due to the capital increase in July 2021 and the repayment of borrowings. The Nordex Group's liquidity has increased slightly to EUR 784.4 million at the end of 2021 (December 31, 2020: EUR 778.4 million).
Further increase in installations and service, order books full
In 2021, Nordex significantly increased installations, even though the COVID-19 pandemic caused repeated disruption to project development activities. In total, Nordex installed 1,619 wind turbines in 22 countries (2020: 1,533 in 24 countries) with a total capacity of 6.7 GW (2020: 5.5 GW). At the end of the year under review, Nordex serviced 9,765 wind turbines worldwide with a total capacity of 27 GW, most of them on long-term contracts. The order book in the Service segment increased by 7.7 percent to EUR 3.0 billion, while the order book in the Projects segment expanded considerably to EUR 6.2 billion.
Forecast for 2022 and medium-term target
For the current year, Nordex expects consolidated sales of EUR 5.4 to 6.0 billion. The EBITDA margin is expected to be within a range of 1.0 to 3.5 percent. Cost-pass through, further increasing share of projects using the Delta4000 platform and stability in the macro environment will be essential for achieving the Company’s margin improvement targets. The Management Board of the Nordex Group expects the market environment to remain challenging and for costs to remain under pressure, particularly as a result of the war in Ukraine. All in all, the Management Board believes that Nordex is on the right track and confirms its strategic objective of achieving an EBITDA margin of 8 percent in the medium term.
Share price climbs by midday
Nordex's figures and outlook were initially well received on the stock market. Analysts at Jefferies maintain their rating for Nordex at "Buy" with a target price of EUR 20 after publication of the figures. The stock climbs to a daily high of EUR 15.17 by midday, but falls back again in the afternoon. At the end of the trading day, Nordex stock closes up 3.2 percent at EUR 14.51 (March 29, 2022, closing price, Stuttgart Stock Exchange). Compared with the price at the beginning of the year, Nordex is thus currently up just under 4 percent.
Source: IWR Online, 30 Mar 2022