Original-Research: INDUS Holding AG (von NuWays AG)

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 € 434m (eNuW: € 424m, eCons: € 426m), up 1.2% yoy as sales from the Infrastructure segment grew by 7.5% yoy to € 156m (due to two acquisitions and improving demand), which compensated for weaker Materials Solutions (-3.6% yoy to € 142m) as a result of supply chain constraints, a smaller divestment and flattish yoy development of Engineering (-0.2% yoy to € 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 € 446m (backlog at the end of Q2: +4.5% yoy to € 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 € 31.2m (eNuW: € 33.9m, eCons: € 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 € 56.1m.

Q2 FCF of € 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 € -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 € 90m in reach (eNuW: € 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 € 580-590m (H1: € 635m).

M&A engine running well. Year-to-date, Indus Holding 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 € 500m M&A war chest to be deployed until 2030.

FY25 guidance confirmed. Management continues to expect sales of € 1.7-1.85bn, adj. EBITA of € 130-165m and FCF of more than € 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 € 34 PT based on FCYF25e.

You can download the research here: indus-holding-ag-2025-08-13-previewreview-en-5b629
For additional information visit our website: 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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Offenlegung möglicher Interessenskonflikte nach § 85 WpHG beim oben analysierten Unternehmen befinden sich in der vollständigen Analyse.
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