Muted start into the year; gradual improvements expected

Preliminary sales in Q1 declined by 10% yoy to € 20.6m due to unchanged wait-and-see attitude of customers and situation-related investment postponements, particularly in the semiconductor industry. As a result of the weak operating leverage, preliminary Q1 EBIT turned negative at € -0.9m (vs € 1.6m in Q1 2024).

Order backlog down yoy due to fundamentally changed order behaviour. In particular, larger OEM customers have adjusted their ordering patterns in response to increased market uncertainty and reduced predictability. Instead of placing long-term blanket orders for 12 or 24 months, they are increasingly opting for shorter-term orders, such as on a quarterly basis. The € 45m order backlog at the end of Q1 (-24% yoy) is hence no major reason for concern, in our view.

FY25 guidance remains unchanged. Management continues to expect € 105-110m sales (eNuW: € 108m) and € 8.5-10m EBIT (eNuW: € 9.1m) for the full year, carried by sequential improvements throughout the year, a well filled product pipeline, recent product launches, improving demand from core markets such as semiconductors, med-tech and pharma but also delayed orders materializing.

Importantly, management reaffirmed its mid-term targets of €200m in sales and a 16–19% EBIT margin within 3-5 years, driven by organic growth and strategic acquisitions. This dual strategy positions Nynomic to capitalize on rising industry demand and enter a promising growth phase.

While the Q1 results reflect a challenging start into 2025, we take comfort from the solid order backlog and management’s confidence in catching up over the year. Structural measures should support margin expansion beyond 2025. While the short-term visibility remains limited due to volatile customer ordering patterns, the long-term prospects remain unchanged, which is not reflected in the depressed valuation. We hence confirm our BUY rating with an unchanged € 34.5 PT based on DCF.