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Nordex Se

Q22026

7/29/2026

speaker
Moritz
Chorus Call Operator

Ladies and gentlemen, welcome to the Q2 Figures 2026 conference call. I'm Moritz, the chorus call operator. I would like to remind you that all participants will be in the listen-only mode and the conference has been recorded. The presentation will be followed by a question and answer session. You can register for questions at any time by pressing star and one on your telephone. For operator assistance, please press star and zero. The conference must not be recorded for publication or broadcast. At this time, it's my pleasure to hand over to Anja Siehler. Please go ahead.

speaker
Anja Siehler
Nordics Team / Investor Relations

Thanks, Moritz. A warm welcome from the Nordics team in Hamburg. Thank you for joining the Q2 2026 Results Management Call. As always, we ask you to take notice of our safe harvest date. With me are our CEO Jose Luis Blanco and our CFO Ilya Hartmann, who will lead you through the presentation. Afterwards, we will open the floor for your questions. and now I would like to hand over to you Jose Luis.

speaker
Jose Luis Blanco
Chief Executive Officer

Thank you very much for the introduction Anja and on behalf of the management board I would like to welcome you to our second quarter results of 2026. Let me start with a brief overview of the key highlights of the quarter. Overall, I'm pleased to report that the second quarter of 26 reflects Continued positive momentum for Nordex. We deliver revenue growth, achieve a double digit EBITDA margin, generate a healthy free cash flow, and maintain a strong financial position. First, order intake reached 3.1 gigawatts, representing growth of 32% year on year. Europe continues to be our largest region, accounting for 74% of the project order intake, while Germany and the United States were the most important individual markets during the quarter. Second, we continue to deliver strong revenue growth. Total revenues increased by 16% year-on-year to 2.2 billion euros, Project revenues accounted to around 90% of total revenue and grew by 18%, reflecting continued progress in project execution. At the same time, our service business continued its positive development while revenues increased by 8% year-on-year and EBIT margin going to 19.7%. Third, profitability improved further. We achieved an EBITDA margin of 10.3%, exceeding the 10% threshold and improving by 450 basic points compared to last year. Finally, cash generation remained strong. We generated free cash flow of 165 million euros, while working capital remained stable at minus 8.3%. In addition, we strengthen our financial flexibility by securing 2.5 billion euros of bank warranty facilities on improved commercial terms. At the end of the quarter, our net cash position stood at 1.7 billion euros, underlying the strength of our balance sheet. Overall, the second quarter demonstrates the continued progress we are making across the business. We remain focused on discipline execution, profitable growth, and delivering on our guidance for the full year 2026. Moving on, turning to our activities in North America, particularly in US, on page 5. I'm happy to report that we have successfully re-established our presence in the market. Year to date, we have secured around 800 megawatts of orders until the end of June. supported by a diversified customer mix and we keep on working on increasing the pipeline. At the same time, the ramp up of our IOA facility is progressing well. Production is underway. The facility is ready to scale with demand and no further capex will be required. Combined with our established service footprint and growing regional organization, we believe We are well positioned to capture future opportunities in the US and Canada. And let me turn now to our operational performance, starting with development of our ordering tape. As published in our ordering tape press release on July the 9th, we saw a strong uptick in orders driven by various regions. During the second quarter, we recorded 3.1 GB of order intake, an increase of 32% year-on-year. The growth was supported by major US orders entering the book. Consequently, order intake for the first six months of the year reached close to 5 GB. In euros, turbine order intake totaled almost 3 billion. Orders were received from 10 different countries, and the average The selling price of 0.97 million euros per megawatt was stable when compared with the second quarter of previous year. Although average selling prices are influenced by the specific project and regional mix, in any given quarter we continue to see stable pricing across our markets. From a regional perspective, Europe remained the main region and accounted for 74% of the order intake. While, and as usual, we are not providing specific guidance for order intake for 2026, we continue to expect a good order momentum for this year. And with this, let's move to slide A, where I will discuss the development of the order book. The combined order book strengthens further and exceeds 18 billion euros at the end of the second quarter of 2026, reflecting continued positive momentum of both our turbine and service business. Turbine order book reached 11.6 billion and most of the orders came from Europe, followed by North America, rest of the world and Latin America. In the service segment, the order book increased to 6.8 billion euros. By the end of the quarter, the service portfolio crossed an important milestone. For the first time, we have over 50 gigawatts under service, representing more than 14,000 wind turbines. Overall, the order book developed supports planning visibility and reflects the expansion of our installed base over the past years. And let us move to slide number nine. and have a closer look into the service business. The second quarter of 26 continued to show solid progress in the service business. Service sales increased by 8% and reached 223 million euros, representing 10% of total group revenues. EBIT margin further improved to 19.7%, progressing towards our mid-term EBIT margin target of crossing the 20%. Operationally, fleet availability remained stable at around 97%, and the average tenure of service contracts increased to over 14 years. Let me move to the next slide. Giving you some insights into our installation and productions, in page number 10, installations developed according to plan and total 1.2 gigabits. The reduction year-on-year was primarily driven by project scheduling, with a large share of installations waited for second half of the year. There were also some regional mix effects, some customers delays, and as previously communicated, place-related postponements in Turkey. While installations in Germany increased year on year, this was not sufficient to fully offset this regional mix effect. The key takeaway is that these are primarily timing-related factors. We continue to expect full-year installation to grow compared to 2025. On the production side, turbine output increased to 337 units, reflecting project scheduling and delivery requirements. Blade production remains stable at around 1,343 blades. And now I will I'd like to hand over to Ilya to talk about the finances.

Disclaimer

This conference call transcript was computer generated and almost certianly contains errors. This transcript is provided for information purposes only.EarningsCall, LLC makes no representation about the accuracy of the aforementioned transcript, and you are cautioned not to place undue reliance on the information provided by the transcript.

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