Financial Results Show Marked Improvement (Image Credits: Pexels)
As Europe accelerates its shift toward renewable energy, Nordex SE delivered a robust start to 2026 with first-quarter results that exceeded prior-year performance and reinforced its position in the wind turbine market. The German manufacturer reported higher sales, expanded margins, and a surge in net income, prompting a 4.28% rise in its stock price to €46.78.[1] These figures underscore the company’s operational improvements at a time when steady demand from key markets like Germany supports the sector’s growth trajectory.
Investors welcomed the update, which arrived amid ongoing geopolitical tensions and supply chain scrutiny, signaling Nordex’s resilience and readiness to meet full-year targets.
Financial Results Show Marked Improvement
Nordex posted sales of €1,588 million in the first quarter, marking a 10.6% increase from €1,435 million a year earlier.[2] This growth stemmed from both project and service segments, each advancing by roughly 11%. Gross profit rose 19.2% to €466 million, lifting the gross margin to 29.4% from 27.3%.
Earnings before interest, taxes, depreciation, and amortization climbed 64.3% to €131 million, with the EBITDA margin expanding to 8.2% from 5.5%.[2] Net income jumped to €54 million from €8 million, reflecting stronger profitability across operations. EBIT reached €89 million, up more than 100% year over year, with the margin at 5.6%.
| Metric | Q1 2026 | Q1 2025 | Change |
|---|---|---|---|
| Sales (€ million) | 1,588 | 1,435 | +10.6% |
| EBITDA (€ million) | 131 | 80 | +64.3% |
| EBITDA Margin | 8.2% | 5.5% | +2.7 pp |
| Net Income (€ million) | 54 | 8 | >100% |
Orders and Installations Bolster Backlog
The company secured €1.7 billion in project order intake, equivalent to 1.9 gigawatts, though slightly below the prior year’s strong base. Service order intake grew sharply by 73.6% to €683 million, highlighting demand for maintenance and operations.[2] Total order book stood at €17 billion as of March 31, comprising €10.5 billion in projects and €6.5 billion in services – a 27% and 24% increase, respectively, from year-end levels.
Installations advanced with 227 turbines erected across 14 countries, up 10% in megawatts terms, primarily in Europe and South Africa. Production output rose to 249 units from 209, supported by facilities in Germany, Spain, and emerging capacity in Turkey.[1] Europe accounted for 97% of project orders, led by Germany, Turkey, and Sweden.
Service Business Drives Margin Expansion
Nordex emphasized its service segment, which generated €218 million in revenue – 14% of the total – and delivered an EBIT margin of 19.2%. The service order book covers 49.4 gigawatts from nearly 14,000 turbines, with contracts averaging over 13 years and fleet availability at 97%.[1] CEO José Luis Blanco noted, “Our strong Q1 results demonstrate the effectiveness of our strategy and operational excellence, positioning us well for sustained growth.”[1]
This recurring revenue stream offset seasonal pressures in projects and contributed to overall margin gains. Management attributed improvements to efficiency measures, stable pricing at €0.91 million per megawatt, and a favorable regional mix.
Full-Year Guidance Remains Firm
Nordex confirmed its 2026 outlook, projecting sales between €8.2 billion and €9 billion alongside an EBITDA margin of 8% to 11%.[1] Capital expenditures will total around €200 million, focused on blades, production cells, and tooling. Free cash flow should remain solid, though first-quarter seasonality led to a €98 million outflow.
The balance sheet stayed strong, with €1.8 billion in cash equivalents and a net cash position of €1.5 billion. Working capital ratio improved to -9%, and equity ratio edged up to 19.4%. Blanco added, “The first quarter confirms that we are on track to deliver on our guidance for 2026.”[1] Executives flagged potential risks from geopolitics and supply chains but expressed confidence through diversification and stockpiling.
- Wind sector stakeholders gain visibility into sustained profitability amid Europe’s energy transition.
- Investors eye H2 acceleration for margin midpoint-plus delivery.
- Service growth offers stability against project seasonality and external shocks.
Nordex’s Q1 performance highlights a maturing business model in renewables, where service revenues and operational discipline provide a buffer as global wind demand evolves.
