Key Results for Q3 2025
- Revenue: €1.706 billion (up ~2.1% vs. Q3 2024’s ~€1.6707 billion). (Investegate)
- EBITDA: €135.9 million (vs. €71.5 million in Q3 2024) → ~90% increase. (Investegate)
- EBITDA margin: 8.0% (vs. 4.3% in Q3 2024) → improvement of ~3.7pp. (WebDisclosure)
- Net income: €51.7 million (vs. ~€3.9 million in Q3 2024) → very large year-on-year jump. (Investing.com)
- Free cash flow for Q3: €149.0 million (vs. ~€159.2 million in Q3 2024). (WebDisclosure)
- Order intake (Projects) in Q3: ~2,170 MW (vs. ~1,726 MW in Q3 2024; +25.7%). (Investegate)
- Order book (end-September 2025): €9.3 billion in Projects (vs. €6.9 billion Sep 2024); €5.6 billion in Service (vs. €4.6 billion). (WebDisclosure)
- Cash & cash equivalents (end Sep 2025): €1,378.1 million (vs. €1,151.4 million end-2024) → net cash position of €1,073.0 million. (WebDisclosure)
- Guidance for Full Year 2025: EBITDA margin raised to 7.5 %–8.5% (previously 5.0%–7.0%). Sales guidance unchanged at €7.4 billion–€7.9 billion. (windindustry.com)
What’s Driving the Improvement
- Stronger execution across both the Projects and Service segments — increased order intake, improved project margins. (Investegate)
- Growth in Service revenue: Q3 Service sales ~€219.2 million (+9.2% vs. Q3 2024). (WebDisclosure)
- Working capital improvements and strong cash generation, aiding free cash flow and net cash build.
- The margin improvement appears partly due to cost discipline and better project mix (higher value, better execution).
- The elevated order book gives visibility and supports the revised guidance.
Strategic Implications
- For Nordex, the leap in profitability suggests it is approaching its medium-term margin target (historically ~8%).
- A stronger balance sheet and large net cash position improve flexibility (investment, product development, M&A, etc.).
- Growing service business is beneficial — recurring revenue streams typically provide higher margin stability.
- With backlog strong, the company is better positioned to ride the global wind-turbine demand tailwinds (onshore in particular).
- For investors, the margin upgrade is a positive signal — the business is moving from just growth to profitable growth.
Risks & Considerations
- Although revenue grew, it was modest (~2%), so margin improvement is crucial — sustaining it will be key.
- Some supplier delays were noted (e.g., in Turkey) which impacted the Projects segment. (Investing.com)
- The wind-turbine market is competitive and subject to commodity cost inflation, supply-chain volatility and policy/regulatory risks (subsidy regimes, grid access).
- Execution risk remains high: large order intake and backlog are positive, but delivering profitably is non-trivial in large infrastructure-projects.
- The revised guidance covers margin but not growth in sales volume — macro conditions (demand, raw materials, currencies) could affect results.
- Free cash flow in Q3 was slightly lower than Q3 2024 (€149m vs €159.2m) despite higher profit — working capital or capex swings may be influencing this.
My View & What to Watch
- My view: This is a strong quarter for Nordex — the sharp margin jump and net profit improvement show the strategy is working. The move toward higher-margin services plus improved project execution is paying off.
- What to watch next:
- Q4 performance: whether the margin improvement sustains, and full-year targets are met.
- Service segment growth: how big a proportion of revenue/EBIT it becomes, and if margin in service is maintained or improved.
- Execution on the large backlog: conversion of orders into profitable installations.
- Supply-chain & cost inflation: whether raw material/transportation pressures bite.
- Market demand: wind-turbine demand across regions (Europe, North America, Latin America, “Rest of World”) and policy/regulatory tailwinds.
- Capex and working-capital trends: sustained free cash flow generation is key given the heavy investment environment.
- Here’s a case-study-style breakdown of Nordex SE’s Q3 2025 performance followed by commentary and implications.
Key Facts (Q3 2025)
- Sales: ~EUR 1.706 billion in 3Q 2025 (versus ~EUR 1.671 billion in 3Q 2024). (WebDisclosure)
- EBITDA: EUR 135.9 million (versus EUR 71.5 million in 3Q 2024) → ~90% growth. (WebDisclosure)
- EBITDA margin: 8.0% in 3Q 2025 (vs 4.3% in same quarter previous year) → margin improvement +3.7 pp. (WebDisclosure)
- Net income: EUR 51.7 million in 3Q 2025 vs ~EUR 3.9 million in 3Q 2024. (WebDisclosure)
- Free cash flow (Q3): EUR 149.0 million (slightly below EUR 159.2 million in same quarter prior year) but still strong. (WebDisclosure)
- Order intake in Projects segment: ~2,170 MW in Q3 2025, up ~25.7% vs Q3 2024 (1,726 MW). (WebDisclosure)
- Order book (30 Sept 2025): Projects ~EUR 9.3 billion (vs ~€6.9 billion Sept 2024); Service ~EUR 5.6 billion (vs ~€4.6 billion) → strong backlog. (WebDisclosure)
- Guidance: Full-year 2025 EBITDA margin guidance raised to 7.5%-8.5% (from prior 5.0%-7.0%). (RTTNews)
Case Study Elements
A. Execution in Projects & Service
Nordex’s stronger results are driven by both the Projects and Service segments:
- Projects: Order intake up strongly (~26%) indicates improving sales momentum.
- Service: While Projects sales were flat (~€1.5 billion) in Q3 vs prior year, Service sales grew ~9.2% to €219.2 million. (WebDisclosure)
- The company deploys more turbines: In Q3 the installed MW increased (2,576 MW vs 2,010 MW a year earlier) reflecting better execution. (WebDisclosure)
B. Margin Improvement & Profitability Leap
- A margin jump from ~4.3% to 8.0% is substantial. This suggests cost discipline, better project mix, improved negotiation or scale-efficiencies.
- Net profit moving to ~€51.7 million from ~€3.9 million is a large inflection point.
- Backlog growth gives visibility: helps management and investors believe the improved margins may persist.
C. Financial Health / Cash & Backlog
- Net cash position improved (cash ≈€1,378 million end Sept) and working capital ratio improved. (WebDisclosure)
- Order book expansion gives pipeline: Projects ~€9.3 billion, Service ~€5.6 billion.
- Free cash flow strong: though slightly down vs prior year Q3, but still substantial and positive in an industry that often struggles with cash flow.
- With improved profitability and backlog, Nordex appears to be transitioning from growth / volume focus to profitable growth.
Comments & Implications
Strengths
- Credible step-up: The margin improvement is not trivial — indicates Nordex is starting to convert scale into profit rather than just revenue growth.
- Service business rising: Growth in service is important since it’s typically higher margin, more predictable, and adds recurring revenue.
- Backlog gives visibility: A larger order book supports future revenue and gives confidence that results are not fluky.
- Guidance raised: Raising the full-year margin guidance is a signal of management confidence and better underlying fundamentals.
Risks / Areas to Watch
- Flat Projects revenue in Q3 vs prior year: while order intake is up, sales didn’t grow much in the Projects segment in Q3, perhaps due to seasonal or supply-chain delays (they noted delays at a supplier in Turkey). (WebDisclosure)
- Supply chain / execution risk: The rotor blade production dropped ~24.7% in Q3 due to supplier delays in Turkey. (WebDisclosure)
- Macro & market risks: Wind turbine business is exposed to commodity input costs, regulation/subsidy changes, currency and global project timing.
- Sustainability of margin improvement: Achieving ~8% margin is a good milestone, but staying there (or improving further) requires consistent execution, stable pricing and cost control.
Broader Industry Implications
- For the onshore wind turbine market, Nordex’s improvement shows that competitive pressure and cost inflation do not necessarily doom profitability — companies that execute well can improve margins.
- The service business is becoming more important in renewables equipment firms: recurring revenues provide stability.
- Investors may start treating renewable equipment firms less as “growth at any cost” and more as capable of delivering profit — which changes valuation frameworks.
What to Monitor Next
- Q4 and full-year 2025 results: whether Nordex hits its raised guidance and sustains margin improvement.
- Project mix: What geographies, what turbine types, how much backlog converts into revenue.
- Supply-chain trends: Particularly turbine blades, logistics, labour costs, raw materials.
- Service segment margin: How profitable services become, what the growth rate is.
- Competitive environment: How does Nordex compare with peers (Vestas Wind Systems A/S, Siemens Energy AG) in terms of margin and backlog.
- Policy/regulatory tailwinds: Onshore wind permitting, auctions, grid access — these can significantly affect order intake and timing.
Conclusion
Nordex’s Q3 2025 is a strong inflection point: revenue largely stable, but profitability and margin substantially improved. The increased order intake and backlog support further growth. If Nordex can mitigate supply-chain risks and execute efficiently, it may transition into a more sustainably profitable business rather than just a growth play.