Märkte & Kurse

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Original-Research: INDUS Holding AG - from NuWays AG

13.08.2025 / 09:00 CET/CEST
Dissemination of a Research, transmitted by EQS News - a service of EQS
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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:                        13.08.2025
     Target price:                EUR 34.00
     Target price on sight of:    12 months
     Last rating change:
     Analyst:                     Christian Sandherr

Weak H1 but strong order intake to fuel improvements

Sales in Q2 came in at EUR 434m (eNuW: EUR 424m, eCons: EUR 426m), up 1.2% yoy as

sales from the Infrastructure segment grew by 7.5% yoy to EUR 156m (due to two
acquisitions and improving demand), which compensated for weaker Materials
Solutions (-3.6% yoy to EUR 142m) as a result of supply chain constraints, a
smaller divestment and flattish yoy development of Engineering (-0.2% yoy to
EUR 137m). Overall, the weak USD turned into another headwind. H1 sales were
down 0.3% yoy (2.6% positive M&A effect).

Order intake uptick supports H2 improvements. The group's order intake
increased by 16% yoy to EUR 446m (backlog at the end of Q2: +4.5% yoy to EUR
665m). Most noteworthy, Engineering recorded a 32% jump of incoming orders
(H1: +25% yoy) while Infrastructure and Material Solutions both posted a
decent gain for the quarter (10%, 7%) and a slight gain for H1 (1%, 2%).

Adj. EBITA stood at EUR 31.2m (eNuW: EUR 33.9m, eCons: EUR 35.6m), a 26% yoy
decrease with a 7.2% margin (-2.7pp yoy) largely driven by the challenging
supply chain situation in regards to rare earths (Materials Solutions margin
-4pp yoy), a price pressure in the Infrastructure segment (-3.1pp yoy) and a
group-wide FX headwind. H1 adj. EBITA was down 24% yoy at EUR 56.1m.

Q2 FCF of EUR 15.7m was down 55% yoy as a result of continued investments
across the group's portfolio as well as higher working capital needs; H1 FCF
stood at EUR -7.9m. During H2, FCF is seen to strongly increase carried by
seasonal working capital dynamics and the expected rise of adj. EBITA
putting the FY25 FCF guidance of more than EUR 90m in reach (eNuW: EUR 90m).
Mind you, in FY24, Q4 accounted for more than half of FY FCF. During the
earnings call, management highlighted a year-end net debt target of EUR
580-590m (H1: EUR 635m).

M&A engine running well. Year-to-date, INDUS acquired five companies (four
in H1) across Engineering and Infrastructure also expanding its geographical
footprint in the US and the Nordics. This is in line with its recently
introduced "Empowering Mittelstand" strategy which includes a EUR 500m M&A war
chest to be deployed until 2030.

FY25 guidance confirmed. Management continues to expect sales of EUR
1.7-1.85bn, adj. EBITA of EUR 130-165m and FCF of more than EUR 90m. In light of
the H1 results and the required improvements that are partially backed by
the order backlog/order momentum, we regard the guidance as reasonable.

BUY with an unchanged EUR 34 PT based on FCYF25e.



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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
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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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2183164 13.08.2025 CET/CEST

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