German wind turbine manufacturer Nordex , a key player in the onshore wind turbine market alongside competitors GE and Siemens Energy, has reversed losses, posting a core profit in the third quarter. The company attributes this turnaround to the successful completion of high-margin projects, despite ongoing challenges in the wind sector.
Nordex, of which Spain's Acciona owns a 47.1% stake, reported third-quarter earnings before interest, tax, depreciation, and amortization (EBITDA) of 48 million euros ($51.4 million). This marks a significant improvement compared to a loss of 27 million euros in the same period last year. Following this positive development, shares of the company on the Frankfurt stock exchange saw a 2.8% increase at 0716 GMT.
CEO Jose Luis Blanco commented on the results, stating, “The third quarter was marked by a high installation level for the Nordex Group. As a result, we achieved an improvement in our sales and earnings as higher-margin projects were completed.” Blanco also acknowledged the likelihood of short-term challenges in the upcoming fourth quarter, potentially leading to increased volatility in project execution.
Despite industry-wide obstacles such as inflation and permitting delays, which necessitate renegotiating contracts to mitigate the risk of loss-making projects, Nordex remains optimistic. The company confirmed its outlook, anticipating a rise in sales to 5.6 billion to 6.1 billion euros in 2023, compared to 4.5 billion euros in the previous year. The EBITDA margin is expected to range between -2% to +3%, compared with -1.5% in 2022.