Nordex Shares Surge to New Highs on Major Contract and Record Performance

Nordex wins 40-turbine order with 15-year service contracts, building on record 2025 sales and strong 2026 guidance as its stock surges.

The German wind turbine manufacturer Nordex is riding a powerful wave of momentum. Fresh off its most successful fiscal year to date, the company has secured another substantial order, underscoring robust demand for its onshore wind technology and propelling its share price to multi-year highs.

A Strategic Order with Long-Term Benefits

Long-standing client wpd has placed a new order for 40 wind turbines from Nordex's Delta4000 series, representing a total capacity of nearly 280 megawatts. The turbines are destined for nine separate wind farm projects across four German states: Mecklenburg-Western Pomerania, North Rhine-Westphalia, Hessen, and Lower Saxony. Installation and delivery are scheduled for 2027.

A strategically significant aspect of this deal is the accompanying service agreement. Each of the 40 turbines will be supported by a 15-year premium service contract. This highlights Nordex's deliberate focus on expanding its service division, a move designed to generate predictable, recurring revenue and provide stability against the cyclical nature of its core project business.

Record Financials Provide a Solid Foundation

This latest contract builds upon an exceptionally strong financial performance. For the 2025 fiscal year, Nordex achieved group sales of €7.6 billion and a record order intake of 10.2 gigawatts. The full-year EBITDA margin stood at 8.4%, with a notable acceleration to 12.1% in the fourth quarter, demonstrating strong operational momentum as the year closed. Furthermore, the company generated a substantial free cash flow of €863 million, significantly bolstering its financial flexibility.

Looking ahead, management has provided guidance for 2026, forecasting sales in a range of €8.2 to €9.0 billion alongside an EBITDA margin between 8.0% and 11.0%. The company's medium-term ambition is to achieve a margin of 10% to 12% across the industry cycle. Additionally, Nordex has announced plans to initiate capital returns starting in 2027, with annual distributions of at least €50 million to be executed either as dividends or share buybacks.

Equity Markets Reward Progress

The market has responded positively to this compelling narrative. Nordex shares recently reached a 52-week high of €43.94, marking an impressive gain of approximately 46% since the start of the year. An investor who entered a position twelve months ago would have seen their investment nearly triple in value.

With its order books full, a growing high-margin service segment, and confident revenue targets for the coming year, Nordex appears fundamentally well-positioned. The next key milestones for investors will be the publication of the complete 2025 annual results and the initial outlook for the current quarter. These updates will offer further evidence on whether the current elevated valuation is sustainable.