Märkte & Kurse

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Original-Research: INDUS Holding AG - from NuWays AG

15.05.2025 / 09:00 CET/CEST
Dissemination of a Research, transmitted by EQS News - a service of EQS
Group.
The issuer is solely responsible for the content of this research. The
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Classification of NuWays AG to INDUS Holding AG

     Company Name:                INDUS Holding AG
     ISIN:                        DE0006200108

     Reason for the research:     Update
     Recommendation:              BUY
     from:                        15.05.2025
     Target price:                EUR 34.00
     Target price on sight of:    12 months
     Last rating change:
     Analyst:                     Christian Sandherr

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 EUR 402m (eNuW: EUR 409m), 1.9% below last year due to a
challenging economic environment. While sales in Infrastructure grew by 3.4%
to EUR 136m partly due to the acquisition of GRIDCOM, sales in Engineering
declined by 4.8% to EUR 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 EUR 143m mainly due to the
discontinuation of IMECO.

Order intake increased 2.6% yoy to EUR 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 EUR 665m but remains at a relatively low level.

Adj. EBITA came in at EUR 24.9m (eNuW: EUR 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 EUR -23.6m from EUR 6.1m last year, due to a EUR 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 EUR 1.70-1.85bn (eNuW: EUR 1.74bn)
and adj. EBITA between EUR 130-165m (eNuW: EUR 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 EUR 34 per share, based on FCFY'25e.

You can download the research here: http://www.more-ir.de/d/32610.pdf
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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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