Nordex SE: Nordex Group began 2020 with turbine order backlog of EUR 5.5 billion

The Nordex Group (ISIN: DE000A0D6554) today announced that it began 2020 with a well-filled order book for new wind turbines of EUR 5.5 billion, up 43 percent on the previous year (2018: EUR 3.9 billion). In light of this, the Company once again expects a visible rise in sales and a further increasing operating profit.

Guidance for 2020

Subject to the unforeseeable extent and duration of the measures taken worldwide to contain COVID-19 and their economic impact, the Nordex Group anticipates consolidated sales of EUR 4.2 to 4.8 billion for the current financial year in which sales in the second half of the year will exceed those of the first half. The Company expects earnings before interest, taxes, depreciation and amortization (EBITDA) to be within a range of EUR 160 to 240 million. These expanded ranges take into account the significant increase in activity and the grown operational challenges this will bring. However, against the backdrop of COVID-19, the Group’s business performance in 2020 is subject to significant uncertainty, which primarily result from the action that has already been and has yet to be taken in many countries to contain the virus, and from the spread of the disease itself. It is still too early to conclusively assess the consequences of this new, complex and continuously changing situation. This guidance is based on Nordex’s expectation that it will be able to process its strong order book efficiently and without any material interruptions despite the current and possible future measures taken to contain COVID-19. However, should significant disruptions occur in the wake of the pandemic, a correction may be necessary.

Working capital is dependent upon order intake and activity levels. At the end of the year, the working capital ratio as a percentage of consolidated sales is expected to be in negative territory at below zero percent. The Nordex Group has planned at a minimum of EUR 140 million in investments. The final investment amount will ultimately depend on the market situation and the pace in which the supply chain continues to evolve.

Nordex Group closes 2019 in line with its guidance

The annual financial statements presented today confirm the preliminary results published on 9 March 2020 and the fact that the company met its guidance for the 2019 financial year. Consolidated sales increased significantly by 33.6% to EUR 3,284.6 million (2018: EUR 2,459.1 million). The company’s EBITDA margin was 3.8 percent (2018: 4.1 percent). The working capital ratio improved significantly from minus 3.8 percent in the previous year to minus 9.1 percent at the end of 2019. Investments increased in line with expectations to EUR 172.5 million (2018: EUR 112.9 million). As a result, free cash flow amounted to EUR minus 126.0 million (2018: EUR 44.0 million).

The Nordex Group still has an equity ratio of 18.6 percent as at the reporting date (31 December 2018: 22.8 percent). This development was primarily driven by the capital increase implemented in October 2019 and the consolidated net loss. However, total assets grew faster than equity, causing the equity ratio to fall. At the end of the year, the Nordex Group had cash and cash equivalents of EUR 510.0 million, which remains at a good level (31 December 2018: EUR 610.0 million). Net debt amounted to EUR 84.0 million (31 December 2018: EUR 32.5 million).

Installations and service

The Nordex Group installed 938 wind turbines (2018: 828) in 21 countries with a total output of 3.1 GW in 2019 (2018: 2.5 GW). Sales in the Service segment rose by 17.7 percent to EUR 403.2 million (2018: EUR 342.6 million), thus making a 12 percent contribution to overall sales. By the end of the year, Nordex serviced more than 7,760 wind turbines worldwide with total output of 19.6 GW, often on long-term service contracts. In a particularly encouraging development, the Nordex Group convinced a customer of its service expertise as a turbine manufacturer for a 99 MW wind farm in Italy and won the customer back from a third-party provider. The order book in the Service segment rose by 14.4 percent to EUR 2,536.5 million (31 December 2018: EUR 2,217.7 million).

Three new turbine models added to product portfolio

In 2019, the Nordex Group added three new models of the Delta4000 platform to its product portfolio. The N149/5.X and N163/5.X in the 5 MW class are ideally suited to regions with weak and moderate wind speeds and are distinguished by their improved efficiency. The N155/4.5 primarily offers cost benefits in markets with limited grid availability.

“We used the past year to further expand our product portfolio based on the Delta4000 platform and steadily enhance the efficiency of our products. By doing this, we are addressing the different requirements of our customers and international markets around the world. We are also aligning and further developing our global supply chain,” said José Luis Blanco, Chief Executive Officer (CEO) of the Nordex Group.

2019 Sustainability Report presented

The Nordex Group is today publishing its fourth Sustainability Report, which has once again been reviewed by auditing firm PWC, at the same time as the Annual Report. This report explains the latest developments, activities and key figures in the field of sustainability and also contains the consolidated non-financial report. The Nordex Group also presents the progress it has made during the reporting year on the 2019-2021 Sustainability Strategy. In addition, the report includes the process and results of the lifecycle analysis carried out on a wind farm with a new Nordex turbine on the Delta4000 platform during the reporting period.

The Annual Report and the Sustainability Report are now available for download from the Investor Relations section of the company’s website under “Publications” (ir.nordex-online.com). The Nordex Group will report its results for the first quarter of 2020 on 11 May 2020.

Nordex Group key financials