BUY
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Original-Research: INDUS Holding AG - from NuWays AG
Classification of NuWays AG to INDUS Holding AG
Soft start into the year // order intake better than expected Topic: INDUS released mixed Q1 figures with sales and adj. EBITA below our expectations. However, a soft start into the year was already largely anticipated and a solid order intake gives confidence for H2’25e. Sales came in at € 402m (eNuW: € 409m), 1.9% below last year due to a challenging economic environment. While sales in Infrastructure grew by 3.4% to € 136m partly due to the acquisition of GRIDCOM, sales in Engineering declined by 4.8% to € 123m, primarily as a result of lower sales in sorting systems, clean room systems and measurement technology for vehicles. Materials Solutions sales decreased by 4.1% to € 143m mainly due to the discontinuation of IMECO. Order intake increased 2.6% yoy to € 455m with a strong demand in Engineering (+19.5% yoy) thanks to major long-term plant engineering orders (automotive and logistics) compensating for a softer Infrastructure (-7.8% yoy) and Materials Solution segment (-2.9% yoy). Order backlog increased by 4.4% yoy to € 665m but remains at a relatively low level. Adj. EBITA came in at € 24.9m (eNuW: € 28.8m), a 21% decrease yoy with a 6.2% margin (-1.5pp yoy) mainly due to a weak Engineering segment. Nonetheless, like last year, a gradual improvement throughout the year with a strong Q4 is expected for Engineering. Overall, higher personnel costs despite a lower number of employees as well as a slightly higher material cost ratio (44.4% of sales vs. 44.1% in Q1’24) weighed on profitability in the first quarter. FCF decreased to € -23.6m from € 6.1m last year, due to a € 14.3m higher seasonal increase in working capital but also higher investments. FY’25e outlook: Last week, INDUS reduced its FY’25e guidance, especially due to export controls on tungsten compounds from China, which puts pressure on the supply chain of INDUS’ largest holding BETEK (16% of FY’24 sales). Management now expects sales in the range of € 1.70-1.85bn (eNuW: € 1.74bn) and adj. EBITA between € 130-165m (eNuW: € 143m), which looks plausible to us, as we already conservatively account for a tungsten carbide shortage in H2’25e. Reiterate BUY with an unchanged PT of € 34 per share, based on FCFY’25e. You can download the research here: http://www.more-ir.de/d/32610.pdf For additional information visit our website: https://www.nuways-ag.com/research-feed Contact for questions: NuWays AG - Equity Research Web: www.nuways-ag.com Email: research@nuways-ag.com LinkedIn: https://www.linkedin.com/company/nuwaysag Adresse: Mittelweg 16-17, 20148 Hamburg, Germany ++++++++++ Diese Meldung ist keine Anlageberatung oder Aufforderung zum Abschluss bestimmter Börsengeschäfte. Offenlegung möglicher Interessenskonflikte nach § 85 WpHG beim oben analysierten Unternehmen befinden sich in der vollständigen Analyse. ++++++++++
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2138010 15.05.2025 CET/CEST
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