Original-Research: Nabaltec AG - from NuWays AG
Classification of NuWays AG to Nabaltec AG
Revised FY25 guidance due to FX effect and weaker demand Q2 recap: Preliminary Q2 group sales decreased by 4.6% yoy to € 51.8m. Specialty Alumina remained weak at € 13.6m (-8.1% yoy) due its dependency on the steel industry. Functional Fillers sales of € 38.2m were down 3.3% yoy, mainly as a result of continued weak demand for boehmite. The sales decline witnessed during recent years (FY24 -25% yoy) looks set to persist throughout FY25 due to lackluster EV demand across Europe and the ongoing absence of notable cell and separator production capacities. Positively, the underlying demand for its core product, aluminum hydroxide (ATH), the environmental friendly flame retardant used in cables and plastics, but also the visco-optimized gap filler remained strong. After the latter has grown some 100% yoy in FY24 to € 10m, we expect anther 25% increase for FY25e. The EBIT margin in Q2 came in at 9.1% (-1.7pp yoy), notably better than in Q1 as energy prices moved in favour of Nabaltec. While the current operational performance remains subdued, the prospects remain promising. Nabaltec is able to benefit from growing demand for ATH on the back of tightening regulations across its core end markets, vast investments into data centers and renewable energies but also Germany's € 500bn infrastructure spending bill. The latter is seen to also turn into a tailwind for the company's Speciality Alumina segment, which is strongly tied to the European steel industry. While boehmite sales have been declining for several years, the product continues to have potential during the mid-term, depending on European ramp up of battery cell productions. From 2026e onwards, first positive implications as well as general demand normalizations are seen to materialize, eNuW. Amid the currently subdued operational performance, the valuation remains low with shares trading 15% below their book value. Further, Nabaltec offers a healthy balance sheet with good sustainable operating cash flow generation throughout economic cycles. We hence continue to regard Nabaltec as a must own stock within its space. BUY with a new € 18 PT (old: € 24) based on FCFY 2025e. You can download the research here: nabaltec-ag-2025-08-05-previewreview-en-86282 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 ++++++++++ Diese Meldung ist keine Anlageberatung oder Aufforderung zum Abschluss bestimmter Börsengeschäfte. Offenlegung möglicher Interessenskonflikte nach § 85 WpHG beim oben analysierten Unternehmen befinden sich in der vollständigen Analyse. ++++++++++ The EQS Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. | ||||||||||||||||||||
2179348 05.08.2025 CET/CEST
