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

from: 13.08.2025

Target price: EUR 34.00

Target price on sight of: 12 months

Last rating change:

Analyst: Christian Sandherr

Weak H1 but strong order intake to fuel improvements

Sales in Q2 came in at EUR 434m (eNuW: EUR 424m, eCons: EUR 426m), up 1.2% yoy as

sales from the Infrastructure segment grew by 7.5% yoy to EUR 156m (due to two

acquisitions and improving demand), which compensated for weaker Materials

Solutions (-3.6% yoy to EUR 142m) as a result of supply chain constraints, a

smaller divestment and flattish yoy development of Engineering (-0.2% yoy to

EUR 137m). Overall, the weak USD turned into another headwind. H1 sales were

down 0.3% yoy (2.6% positive M&A effect).

Order intake uptick supports H2 improvements. The group's order intake

increased by 16% yoy to EUR 446m (backlog at the end of Q2: +4.5% yoy to EUR

665m). Most noteworthy, Engineering recorded a 32% jump of incoming orders

(H1: +25% yoy) while Infrastructure and Material Solutions both posted a

decent gain for the quarter (10%, 7%) and a slight gain for H1 (1%, 2%).

Adj. EBITA stood at EUR 31.2m (eNuW: EUR 33.9m, eCons: EUR 35.6m), a 26% yoy

decrease with a 7.2% margin (-2.7pp yoy) largely driven by the challenging

supply chain situation in regards to rare earths (Materials Solutions margin

-4pp yoy), a price pressure in the Infrastructure segment (-3.1pp yoy) and a

group-wide FX headwind. H1 adj. EBITA was down 24% yoy at EUR 56.1m.

Q2 FCF of EUR 15.7m was down 55% yoy as a result of continued investments

across the group's portfolio as well as higher working capital needs; H1 FCF

stood at EUR -7.9m. During H2, FCF is seen to strongly increase carried by

seasonal working capital dynamics and the expected rise of adj. EBITA

putting the FY25 FCF guidance of more than EUR 90m in reach (eNuW: EUR 90m).

Mind you, in FY24, Q4 accounted for more than half of FY FCF. During the

earnings call, management highlighted a year-end net debt target of EUR

580-590m (H1: EUR 635m).

M&A engine running well. Year-to-date, INDUS acquired five companies (four

in H1) across Engineering and Infrastructure also expanding its geographical

footprint in the US and the Nordics. This is in line with its recently

introduced "Empowering Mittelstand" strategy which includes a EUR 500m M&A war

chest to be deployed until 2030.

FY25 guidance confirmed. Management continues to expect sales of EUR

1.7-1.85bn, adj. EBITA of EUR 130-165m and FCF of more than EUR 90m. In light of

the H1 results and the required improvements that are partially backed by

the order backlog/order momentum, we regard the guidance as reasonable.

BUY with an unchanged EUR 34 PT based on FCYF25e.

You can download the research here:

https://eqs-cockpit.com/c/fncls.ssp?u=f709affdcfebfa95d7da27fabd018a66

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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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2183164 13.08.2025 CET/CEST

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