Nordex shares jump 13% as Q3 profit beats consensus, margin guidance raised

Shares of German wind turbine manufacturer Nordex surged 13% in early trading on Friday after the company reported third-quarter earnings that significantly surpassed market expectations. The Q3 core profit more than doubled, reaching approximately €278 million compared to €136 million in the same period last year. This beat analyst consensus by 15%. The company's EBITDA margin also improved considerably, reaching 12.7% from 8%, a notable increase from its previous range of 8.0% to 11.0%.

Nordex's revenue for the quarter grew to about €2.19 billion from €1.71 billion, while free cash flow climbed to €379 million from €149 million. The company attributes this impressive performance to higher margins in its Service segment and strong project execution. Importantly, risks identified in its Projects segment for the previous guidance did not manifest as severely as anticipated.

Nordex has raised its full-year margin forecast to a range of 11.5% to 12.5%, up from its earlier range of 8.0% to 11.0%. The company expects to release its full third-quarter results on November 5.