Original-Research: INDUS Holding AG (von NuWays AG): BUY

Classification of NuWays AG to INDUS Holding AG

Company Name:	INDUS Holding AG
ISIN:	DE0006200108
Reason for the research:	Update
Recommendation:	BUY
Target price:	EUR 34
Target price on sight of:	12 months
Last rating change:
Analyst:	Christian Sandherr

Q3 results surprise with significantly stronger bottom-line

INDUS reported Q3 results with a surprisingly strong adj. EBITA. Here are the key takeaways:

Sales in Q3 came at € 437.4m, down 1% yoy (eNuW: € 456m, eCons: € 448.1m). Key drivers were the weak performance in Engineering and Material Solutions, which Infrastructure largely compensated for. € 8.4m were attributable to first-time consolidation of acquisitions. A positive surprise was adj. EBITA of € 48.1m rising by 10% yoy, well above expectations (eNuW: 36.4m, eCons. € 37.1m) despite a significant raw material headwind, especially tungsten. This led to a particularly strong increase in EBIT of 36% yoy to € 43.3m, implying a 9.9% margin (eNuW 31m, eCons. €31.1m). Currency effects contributed costs of € 2.2m, due to the continued dollar weakness.

Engineering sales declined to € 138.5m (-9.2% yoy, eNuW: € 147m), due to a combination of significant end market weakness in mechanical engineering concerning plant equipment demand as anticipated VDMA data. New acquisitions HBS and METFAB contributed positively to the segment’s performance. The segment’s adjusted EBITA of € 12.4m (8.9% margin) was down 26% yoy.

Material Solutions recorded a 3.3% yoy sales decline to € 137.4m (eNuW: € 152m). This decrease is mainly associated with a higher comparable base including revenues of € 13.5m from discontinued IMECO. Tungsten availability is confirmed to be restored now (for the time being), yet negative impacts on margins were unavoidable. Strict cost measures compensated for the negative effects. Adjusted EBITA rose 30% to € 16.4m.

Infrastructure sales growth of 8.8% yoy to € 161.4m (eNuW: €157m) was driven by strong results in almost all portfolio companies of the segment and positive pricing effects. The new acquisitions supported with excellent results. The Q3 adjusted EBITA contribution of € 22.3m, up 8.8% and with a 13.8% margin, significantly supported the group’s bottom line. The comparable base included a positive one-off effect of € 2.6 m from the sale of a BETOMAX subsidiary, without which the increase would have been 12% yoy.

The company generated substantial FCF of € 66.6m in Q3, due to a notably higher operating cash flow (better op. performance and less working capital). 9m FCF stood at € 58.7m and should further increase with the seasonally Q4. Mind you, management confirmed to outlook of >€ 90m for FY25. This is more than sufficient to fund further acquisitions. As indicated in the report, further signings in Q4 2025 are a possibility.
9m order intake grew 17.2% yoy, mainly due to a 35.5% yoy higher order intake in Engineering, which should positively impact the segment’s top-line in 2027/28. Infrastructure and Materials Solutions also recorded increased demand with 9m order intake up 10% and 6.4% respectively.
FY 25 Guidance of € 1.7-1.85bn revenue and € 130-165m adjusted EBITA was confirmed. Taking into account the 9m results, a seasonally strong Engineering business in Q4 and a solid result for Materials Solutions, the lower end of the FY revenue guidance and the mid-point of the adjusted EBITA guidance should be in reach, in our view. BUY with an unchanged € 34.0 PT based on DCF.
 

You can download the research here: indus-holding-ag-2025-11-13-previewreview-en-bc5ec_nd
For additional information visit our website: https://www.nuways-ag.com/research-feed

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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