Nordex share: These are good news

Last Updated: 1. März 2024By

Nordex stock rose significantly yesterday after the presentation of its business figures, including an optimistic outlook for 2024. In today’s morning trading, the stock was able to maintain the positive trend and is up around 8 percent since the release of the fresh numbers, trading at around 11 euros as of March 1, 2024, at approximately 10:30 am.

Nordex saw 2023 as a transitional year and is now looking at the current year with growth prospects. The company also expects to improve its profitability in 2024. Overall, the stock of the wind power company listed on the MDAX has potential for catching up after a weak performance in the last 3 years. For this to happen, the margin targets should be met, preferably in the medium term.

Nordex with strong revenue forecast for 2024 Just under 3 weeks ago, Nordex released its preliminary figures for the 2023 financial year – and surprised positively, especially in terms of revenue. With (according to final figures) 6.49 billion euros, revenue was significantly higher than expected. The forecast range was between 5.6 and 6.1 billion euros.

The EBITDA reached break-even in 2023 with 2 million euros, while the EBITDA margin was in the expected range at 0 percent. For the current year of 2024, Nordex is optimistic and expects revenue to be between 7.0 and 7.7 billion euros.

At the same time, the company aims to become more profitable, with an EBITDA margin of 2 to 4 percent. In the medium term, Nordex’s ambitious goal is to increase the margin to 8 percent.

Nordex stock: A lot of light – now delivery is key With an order backlog of a total of 10.5 billion euros at the end of 2023, the wind power company is well equipped for 2024 and beyond. In fact, the company delivered a strong revenue forecast. In addition, break-even was achieved in EBITDA, taking a step forward. Whether Nordex stock can sustainably rise now depends, among other things, on the development of profitability.

If the margin targets for 2024 and, above all, the medium-term goal of 8 percent EBITDA margin prove to be realistic in the coming quarters, this will also give a boost to Nordex stock. With these ambitious goals, an important first step has been taken. Now the company must deliver – investors should not underestimate the opportunities and risks of this stock.