Nordex trims 2021 EBITDA margin outlook amid market volatility

German wind turbine maker Nordex SE (ETR:NDX1) on Monday posted a 42.2% year-on-year increase in preliminary EBITDA for the first nine months of 2021 but cut its EBITDA margin projection for the full year due to the volatility in commodity and logistics markets.

The manufacturer now expects its 2021 earnings before interest, tax, depreciation and amortisation (EBITDA) margin to hover around 1%, while previously it was seen to fall within the 4%-5.5% range. Fuelled by high demand, meanwhile, sales are projected to stand at between EUR 5 billion (USD 5.8bn) and EUR 5.2 billion rather than EUR 4.7 billion-5.2 billion. Capital expenditure is still expected to be around EUR 180 million.

Nordex explained that the effects of the COVID-19 pandemic have been more severe than anticipated in the second half of the year. The period is also burdened by inflationary pressures and “unprecedented” growth of prices of raw materials and logistics costs.

"These inflationary pressures are currently severe, but in the medium term we expect to benefit from the fundamentals shaping the industry and to return to a more positive business development,” said CEO Jose Luis Blanco.

According to preliminary figures, Nordex will register EBITDA of EUR 100.7 million in January-September, against EUR 70.8 million a year back, with an EBITDA margin of 2.5%, up from 2.2% a year back. Consolidated sales were spurred by increased installation and production in the projects segment and reached EUR 4 billion. In the year-ago period, sales totalled EUR 3.2 billion.

The company’s equity ratio and net cash position at end-September amounted to 28.5% and EUR 516 million, respectively.

Nordex will release its third-quarter financial report on November 15.

(EUR 1.0 = USD 1.159)

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