Nordex Secures Major German Wind Project with Long-Term Service Agreement

Nordex secures a key contract in Hessen, Germany, for eight turbines with a 20-year premium service agreement, boosting its long-term revenue as it reports record 2025 profits and initiates a shareholder returns policy.

The wind turbine manufacturer Nordex has announced a significant new contract within its home market. The company will supply and install eight state-of-the-art turbines for the "Wippershainer Höhe" wind farm in the German state of Hessen. This deal, placed by Qualitas Energy Deutschland, includes a two-decade premium service commitment, providing the firm with a stable, long-term revenue stream.

Project Details and Strategic Importance

The order comprises eight N163/6.X model turbines, which will be mounted on 164-meter hybrid towers. Beyond the initial supply and construction, a critical component of the agreement is a 20-year "Premium Full Service" contract. For manufacturers like Nordex, such long-term service arrangements are highly valuable, as they generate recurring income and create more predictable capacity utilization in the after-sales segment.

The project's timeline extends into the future, with the first turbine installation scheduled for summer 2027 and full commissioning expected by the end of that year. This wind farm is part of a broader portfolio exceeding 3 gigawatts managed by Qualitas Energy, encompassing over 100 individual projects across Germany.

Building on a Record Performance

This new order arrives as Nordex is riding a wave of strong financial momentum from the previous year. The company's 2025 performance showed substantial improvement. Fourth-quarter revenue reached approximately €2.5 billion, marking a 16% year-over-year increase. Earnings before interest, taxes, depreciation, and amortization (EBITDA) surged to €307.4 million, a dramatic 188% rise, pushing the EBITDA margin to 12.1% from 4.9% in the same quarter of 2024.

For the full year 2025, net profit stood at €274 million, a sharp increase from just €9 million in 2024. Order intake remained robust, with project orders climbing by a quarter to €9.3 billion for the year. The fourth quarter alone saw orders for nearly 3.6 gigawatts of capacity.

Forward-Looking Targets and Shareholder Returns

Looking ahead to 2026, Nordex's management is targeting profitable growth. The company has provided revenue guidance in a range of €8.2 billion to €9.0 billion, with an anticipated EBITDA margin between 8% and 11%.

In a move signaling confidence in its future cash generation, Nordex has also introduced a new shareholder returns policy. For the first time, the company has committed to a minimum annual distribution of €50 million starting in 2027, to be delivered either as dividends or through share buybacks. The rationale for the 2027 start date relates to German Commercial Code (HGB) accounting rules, which dictate that distributable profits from the individual financial statement will only become available in 2026.

Market Context and Conclusion

Following a remarkable 199.20% surge over the past twelve months, Nordex shares have recently entered a period of consolidation. The stock closed yesterday at €41.14, which is approximately 4.7% below its 52-week high of €43.16 reached on March 2, 2026.

In summary, the new Hessen contract fits neatly into Nordex's strategic picture. It further?? the company's project pipeline, bolsters its high-margin service business with a two-decade agreement, and supports its ambition to deliver further growth in both revenue and profitability in 2026.