Nordex (XTRA:NDX1) Wins Fresh Wind Orders, Is It Still A Bargain?

Fresh contract wins put Nordex in focus

Nordex (XTRA:NDX1) has moved back onto investor watchlists after a string of client announcements, including 389 MW of new turbine orders in Türkiye and additional projects across Austria, Germany, France, Portugal and Spain.

These contract wins land after a choppy spell for Nordex, with the share price down 10.1% over the past month and 12.2% over the last quarter. However, the stock is still showing a 17.1% year to date share price return and a 47.6% total shareholder return over one year, which points to longer term momentum remaining intact even as recent volatility reflects shifting expectations around growth and risk.

Scan beyond Nordex and shortlist other wind and clean energy manufacturers with contract momentum using our curated 43 power grid technology and infrastructure stocks.

After a 47.6% one year total shareholder return and a recent pullback, Nordex now sits at a point where investors must judge whether most of the rerating is already behind the stock or if meaningful upside still lies ahead as valuation comes into focus.

Most Popular Narrative: 28% Undervalued

Nordex closed at €35.42 against a widely followed fair value estimate of €49.31, which sets up a valuation gap that hinges on how far its current order book and service revenues can support earnings quality over time.

Service segment growth (revenues up 17% YoY, EBIT margin reached 17.7% in Q2, targeting 18 to 19% in 12 months) and high service contract capture rates (close to 100% in Germany) provide recurring, high-margin revenues, supporting sustained gross margin and EBITDA improvement.

See why 17 investors see Nordex as 28% undervalued.

Result: Fair Value of €49.31 (UNDERVALUED)

Still, Nordex remains heavily concentrated in Europe. Any policy setbacks or prolonged warranty cash outflows could quickly challenge the earnings narrative analysts are working with.

Find out about the key risks to this Nordex narrative.

Next Steps

If the tone so far feels optimistic, consider that as a starting point and move quickly to the source material to test it against your own framework using 4 key rewards.

Looking for more Nordex investment ideas?

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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