Core Insights - Nordex is a significant player in the renewable energy sector, focusing on onshore wind turbine manufacturing and planning to expand into the U.S. market to enhance growth prospects [1][3] Financial Performance - On February 26, 2026, Nordex reported earnings per share of $0.91, surpassing estimates of $0.87, with revenue reaching approximately $2.98 billion, significantly exceeding the estimated $1.49 billion [2][6] - The positive earnings report resulted in a 16% increase in Nordex's stock price, indicating strong investor confidence [2] Strategic Focus - The company's strategy to target the U.S. market is driven by rising energy demand from AI-driven data center expansions, which is expected to boost the demand for renewable energy solutions in North America [3][6] Market Valuation - Nordex has a price-to-earnings (P/E) ratio of approximately 35.14, indicating high market valuation of its earnings [4][6] - The price-to-sales ratio is about 1.28, and the enterprise value to sales ratio is around 1.17, reflecting investor willingness to pay per dollar of sales [4] Financial Health - The debt-to-equity ratio stands at approximately 0.51, suggesting a moderate level of debt relative to equity [5][6] - A current ratio of around 1.04 indicates the company's capability to cover short-term liabilities with short-term assets [5] - An earnings yield of about 2.85% provides a comprehensive view of Nordex's financial standing and investment potential [5]

Nordex delivered record order intake and sharply higher profitability in 2025, prompting the company to raise its medium-term EBITDA margin target to 10–12 percent. Nordex SE capped off 2025 with a standout fourth quarter, hitting all financial and operational targets and surpassing its previously stated mid-term profitability goal as Europe’s wind sector regains momentum. The Hamburg-based onshore turbine manufacturer reported Q4 sales of €2.5 billion, up nearly 16 percent year-on-year, while EBITDA s ...

Core Insights - Nordex, an onshore wind turbine manufacturer, is targeting expansion in the U.S. market following a better-than-expected core profit for 2025, driven by a record order intake for the second consecutive year [1] Company Summary - The company reported a significant increase in core profit for 2025, exceeding market expectations [1] - Nordex's growth is attributed to a record order intake, indicating strong demand for its products [1] Industry Summary - The wind turbine manufacturing industry is experiencing robust growth, particularly in the U.S. market, as companies like Nordex seek to capitalize on increasing demand for renewable energy solutions [1]

Group 1 - Leonardo, the Italian defense group, reported financial results for 2025 that exceeded its targets, showing significant increases in all key indicators and a reduction in debt [1][2] - CEO Roberto Cingolani stated that the company surpassed challenging guidance, which had already been upgraded during the year, marking the completion of a value-accretion path initiated three years ago [2] Group 2 - Nordex, an onshore wind turbine manufacturer, announced better-than-expected core profit for 2025 following a record order intake for the second consecutive year [3]

Core Viewpoint - Vestas, a wind turbine manufacturer, reported quarterly profits that slightly missed expectations, leading to a decline in its shares by up to 6% despite the CEO's confidence in future growth [1] Group 1: Financial Performance - The quarterly profit reported by Vestas fell short of market expectations, impacting investor sentiment and share price [1] - The decline in shares reached as much as 6% following the earnings announcement [1] Group 2: Management Outlook - The CEO of Vestas expressed confidence in the company's future growth prospects, indicating a positive long-term outlook despite the current quarterly results [1]

Group 1 - The British government will provide a grant of 20 million pounds (approximately $27.56 million) to Vestas' Isle of Wight wind turbine plant [1] - This financial support is expected to save around 300 jobs at the facility [1]

Corporate News - Danish drugmaker Novo Nordisk surged nearly 5 percent after launching its once-daily Wegovy pill in the United States [3] - TomTom jumped 4.1 percent after renewing its partnership with Uber Technologies to integrate its maps, Maps APIs, and live services across Uber's global platform [4] - German wind turbine maker Nordex gained 1 percent after receiving new orders from wind and solar park developer UKA [4] - Prudential rose about 2 percent after launching a $1.2 billion share buyback program [4] - Next Plc shares were up almost 3 percent after lifting its annual profit forecast, reporting a significant 10.6 percent increase in full-price sales for the nine weeks ending December 27, 2025 [5] - InPost shares soared 15 percent after announcing it received an indicative buyout offer, with a special committee set to assess the potential transaction [5] Market Overview - European stocks were mixed, with the pan-European Stoxx 600 up 0.2 percent at 602.81 after climbing 0.9 percent on Monday amid easing U.S.-Venezuela tensions [2] - The German DAX was marginally lower, France's CAC 40 slipped 0.3 percent, while the U.K.'s FTSE 100 was up 0.6 percent [2] - The shop price index in the U.K. posted an annual growth of 0.7 percent in December, following an increase of 0.6 percent in November, aligning with the three-month average of 0.7 percent [2]

Summary of Key Points from the Conference Call Industry Overview - The conference call focused on the wind turbine Original Equipment Manufacturers (OEMs) sector, particularly highlighting the performance of Nordex and Vestas in Q3 2025, indicating a positive trend in project margins and demand for onshore wind energy [1][2][9]. Core Insights and Arguments - **Earnings Performance**: Both Nordex and Vestas reported stronger-than-expected Q3 2025 earnings, primarily driven by improved project margins. This improvement is attributed to solid execution in a stable logistics environment, high-priced backlog deliveries, and fewer turbine quality issues [2][11]. - **Historical Benchmarking**: The margin recovery in Power Solutions since the 2022 low is compared to the previous upcycle from 2012-2016, suggesting potential for continued positive surprises in the upcoming year [3][14]. - **Onshore Demand**: Strong onshore order intake was reported, with Nordex securing 2.2GW and Vestas 4.6GW in Q3. The German market is expected to see over 11GW of auction volumes in 2026, indicating robust demand [4][15]. - **Market Dynamics**: The US market is anticipated to support onshore volumes towards 2030, with a clear opportunity for order intake in the next 12-24 months [4][15]. Company-Specific Highlights - **Nordex**: - Target price remains unchanged at EUR 33.00, with expectations for margin upticks in 2026 and strong free cash flow (FCF) supporting potential shareholder returns [5][52]. - The company is optimistic about the German onshore market, projecting 11.3GW of auctions in 2026, and is also focusing on opportunities in Canada and the US [51][52]. - **Vestas**: - Target price raised to DKK 190 from DKK 155, reflecting strong performance and positive market dynamics [5][44]. - The offshore segment is ramping up as planned, with expectations for positive margins in 2026. The service business is undergoing a turnaround, although it may take more time to fully realize improvements [45][46]. - Vestas is confident in the US onshore market, with a significant pipeline awaiting clarity on tariffs, which is crucial for negotiations with off-takers [45][46]. Financial Metrics and Valuation - **Nordex Financials**: - Revenue projections for 2025 are EUR 7.784 billion, with EBITDA expected to reach EUR 623 million. The company anticipates a first dividend payment in 2026 with a payout ratio of 25% [63][52]. - **Vestas Financials**: - Revenue for 2025 is projected at EUR 19.121 billion, with EBITDA of EUR 2.163 billion. The company is also targeting a dividend payout ratio of 25-30% [56][57]. Risks and Considerations - **Market Risks**: Potential downside risks include increasing logistics disruptions, tariff uncertainties in the US, and competition from Chinese manufacturers [40][55][50]. - **Operational Risks**: Vestas faces challenges in its service turnaround and must address backlog issues while managing warranty provisions that have peaked [45][46]. Conclusion - The wind turbine OEM sector is experiencing a positive margin upcycle, with both Nordex and Vestas positioned to benefit from strong onshore demand and improving project margins. The outlook for 2026 appears optimistic, supported by robust order intake and strategic market positioning. However, potential risks related to market dynamics and operational challenges remain pertinent [9][14][15].

Industry Overview - Renewable power is abundant and inexpensive in China [1] - This situation benefits consumers but puts pressure on renewable equipment manufacturers [1] Company Strategy - Leading wind turbine manufacturers are responding to the challenges with innovative solutions [1]

Investment & Expansion - Ming Yang Smart Energy Group 将投资 20 亿美元在苏格兰建立制造基地 [1] - 公司正在扩大其在欧洲的影响力 [1]