The Nordex Group (ISIN: DE000A0D6554) managed a complex array of challenges, including the repercussions of the war in Ukraine, massive cost inflation and rising interest rates, to deliver a performance in line with the revised guidance. The Company also battled supply shortages in production and installation and was temporarily affected by a cyber security incident. Despite these factors, the Company gained market share, improved its operating structure, reinforced its financial structure, and raised selling prices, which will have a delayed positive impact.
Nordex Group meets revised guidance for the year 2022
The Nordex Group today published its annual financial statements for 2022, thus confirming the preliminary results published on 9 March 2023. Consolidated sales rose by 4.6 percent to EUR 5.7 billion (2021: EUR 5.4 billion). Earnings before interest, taxes, depreciation, and amortization (EBITDA) amounted to minus EUR 244.3 million (2021: EUR 52.7 million), resulting in a margin of minus 4.3 percent (2021: 1.0 percent). As a result, sales reached the upper end of the most recent forecast range, while after a highly volatile fourth quarter EBITDA was as most recently expected. The working capital ratio as a percentage of consolidated sales was minus 10.2 percent at the end of 2022, again well below the target level of less than minus 7 percent (2021: minus 10.2 percent). Capital expenditure rose to EUR 204.8 million (2021: EUR 168.7 million), exceeding the expected volume of EUR 180 million.
As at the 2022 reporting date, the Group’s equity ratio was 18.5 percent (31 December 2021: 25.9 percent). This development is due to the consolidated net loss in 2022, at least partially offset by the two successful capital increases carried out in mid-2022. The Nordex Group’s cash and cash equivalents amounted to EUR 633.5 million at the end of 2022 (31 December 2021: EUR 784.4 million), while its net cash position reached EUR 244.3 million (31 December 2021: EUR 423.7 million). Free cash flow amounted to minus EUR 513.9 million (2021: EUR 24.5 million).
Operating performance
In 2022, the Nordex Group’s installations were lower than in the previous year due to weather-related delays, the cyber security incident and component bottlenecks. As a result, the Company in the year under review installed 1,129 wind turbines in 19 countries (2021: 1,619 in 22 countries) with a total nominal output of 5.2 GW (2021: 6.7 GW). Sales in the Projects segment rose slightly by 2.7 percent to EUR 5.1 billion (2021: EUR 5.0 billion). The Service segment increased its sales by 22.7 percent to EUR 574 million (2021: EUR 468 million) to comprise 10.1 percent of consolidated sales. By the end of 2022, the Nordex Group serviced 10,599 wind turbines with a total output of more than 31 GW, most of them on long-term contracts (2021: 9,765 turbines, 27 GW). The order book grew by 7.2 percent to EUR 3.3 billion in the Service segment (2021: EUR 3.0 billion), and by 5.8 percent to EUR 6.5 billion in the Projects segment (2021: EUR 6.2 billion). The book-to-bill ratio was also favorably at 1.04 (2021: 1.14).
Production enhanced, product portfolio strengthened
The Nordex Group adjusted and structurally reinforced its global production network during the financial year 2022 to improve its efficiency for the future. The Company manufactured a total of 1,502 turbines (2021: 1,480) and increased the nominal output of the turbines produced by 11.6 percent to almost 7.5 GW (2021: 6.7 GW) due to their improved average output.
The Nordex Group also added the N175/6.X turbine to its product portfolio. With a rotor diameter of 175 meters, currently the largest in the Nordex portfolio, the strengths of this turbine really come to the fore in locations with light and moderate wind speeds, where it generates up to 14 percent of additional output compared to its predecessors.
Financial structure successfully reinforced by capital measures
The Company carried out two capital increases in mid-2022. The first capital increase totaling around 10 percent of share capital generated gross proceeds of more than EUR 139 million. An additional rights issue in return for cash contributions representing more than 20 percent of the new share capital was implemented in July, generating gross proceeds of around EUR 212 million. The Nordex Group also repaid the high yield bond of EUR 275 million with a shareholder loan in early 2023, which is now in the process of being converted into equity.
Guidance for 2023 and medium-term margin target
For 2023, the Nordex Group expects consolidated sales of EUR 5.6 to 6.1 billion and an EBITDA margin of minus 2.0 to plus 3.0 percent. During the course of 2023 the Company anticipates a stronger second half of the year. The main prerequisites for this forecast are a stable macro-environment with predictable costs, a reliable supply chain, and rational prices in the Group’s key markets. This forecast reflects the persistently strained market environment. As a result, reducing risk remains a key priority for the Nordex Group. In addition, the Nordex Group anticipates a working capital ratio in relation to consolidated sales of below minus 9 percent by the end of 2023 and is aiming for capital expenditure of around EUR 200 million.
Considering the positive outlook in its core European market as well as the USA, the Company confirms that it remains on track to achieve its medium-term strategic target of an EBITDA margin of 8 percent.
“2022 was an exceptionally intense year in which we enhanced our production network, bolstered our financial structure, systematically reduced risks, and increased our prices. This has improved our competitive positioning, which is even more important given that 2023 is still faced with some risks on macro-economic fronts including supply chain reliability, inflation and rising interest rates. However, political ambitions to improve the onshore wind energy sector in our core markets of Europe and the USA in particular have intensified significantly, giving us confidence that we can continue to improve our profitability in the mid-term,” said José Luis Blanco, CEO of the Nordex Group.
2022 Sustainability Report published
Together with the Annual Report, the Nordex Group is today publishing its seventh Sustainability Report, which has once again been reviewed by auditing firm PwC. This report explains the Group’s sustainability strategy, the latest developments, activities, and key figures in the field of sustainability and also contains the non-financial Group report.
The Annual Report and the Sustainability Report are now available for download from the Investor Relations section of the company’s website under “Publications” (ir.nordex-online.com). The Nordex Group will announce its results for the first quarter of 2023 on 11 May 2023.
Nordex Group key financials
| (in EUR million) | 2022 | 2021 | Change (%) |
| Sales | 5,693.6 | 5,444.0 | 4.6 |
| thereof Service segment | 574.1 | 468.0 | 22.7 |
| EBITDA | -244.3 | 52.7 | – |
| EBITDA margin | -4.3% | 1.0% | -5.3 PP |
| EBIT margin (adjusted for PPA) | -7.4% | -1.8% | -5.6 PP |
| Consolidated net profit/loss | -497.8 | -230.2 | – |
| Capital expenditure | 204.8 | 168.7 | 21.4 |
| Free cash flow | -513.9 | -24.5 | – |
| Working capital ratio (31.12.) | -10.2% | -10.2% | 0.0 PP |
| Cash and equivalents (31.12.) | 633.5 | 784.4 | -19.2 |
| Net Cash position (31.12.) | 244.3 | 423.7 | -42.3 |
| Equity ratio (31.12.) | 18.5% | 25.9% | -7.4 PP |
| Order intake (Projects) | 5,343.5 | 5,680.8 | -5.9 |
| Order intake (Service) | 677.2 | 624.7 | 8.4 |
| Order book (Projects) | 6,535.0 | 6,177.9 | 5.8 |
| Order book (Service) | 3,255.5 | 3,037.3 | 7.2 |
The Group has installed around 44 GW of wind power capacity in over 40 markets in its corporate history and generated consolidated sales of more than EUR 5.7 billion in 2022. The Company currently has more than 9,100 employees. The Group’s manufacturing network includes factories in Germany, Spain, Brazil, India, and Mexico. Its product portfolio is focused on onshore turbines in the 4 to 6 MW+ class which are designed to meet the market requirements of countries with limited available space and regions with limited grid capacity.
