Nordex Shares Surge on Stellar Earnings and Bold New Strategy

Nordex reports a massive leap in 2025 net profit to €274M, raises 2026 targets, and unveils its first-ever shareholder return policy, sending shares to multi-decade highs.

The Hamburg-based wind turbine manufacturer Nordex has delivered a transformative financial performance for 2025, shattering expectations with a massive leap in profitability. The company's net profit skyrocketed to €274 million, a dramatic increase from the previous year's €9 million. This landmark result, coupled with an ambitious outlook for 2026 and the announcement of its first-ever capital return policy, has propelled the stock to multi-decade highs, even as some hedge funds maintain their skeptical bets.

Profitability Accelerates Beyond Forecasts

Nordex's operational turnaround is gaining momentum at a pace that has surprised the market. For the full year 2025, the company's EBITDA margin nearly doubled, rising from 4.1% to 8.4%. The most striking improvement came in the final quarter, where the margin hit 12.1%—a level management had previously targeted only for the medium term.

Fourth-quarter revenue grew by 16% to reach €2.5 billion, while EBITDA surged 188% to €307 million. The net profit of €274 million for the year comfortably exceeded the average analyst forecast of €249 million.

Record Order Intake Fuels Optimistic Trajectory

Bolstering the improved earnings is a record influx of new orders. Nordex secured orders for 3.6 gigawatts of capacity in Q4 alone, a 9.2% year-on-year increase. With a stable pricing environment, the value of these orders climbed nearly 10% to €3.2 billion.

The project business saw order intake jump by a quarter to €9.3 billion. A key driver is the company's Delta4000 platform, whose modular turbine configurations allow for the economically viable development of sites with lower wind resources—a critical competitive edge in an increasingly crowded marketplace.

Management Lifts Targets and Unveils Shareholder Returns

Looking ahead, Nordex's leadership has set ambitious goals for 2026. They project revenues between €8.2 billion and €9.0 billion, representing growth of 9% to 19%. The EBITDA margin is expected to climb further to a range of 8% to 11%. Furthermore, the medium-term margin target has been raised to 10-12%, up from a previous goal of 8%.

In a significant move for shareholders, the company announced its inaugural capital return policy. Subject to regulatory approvals, Nordex plans to return a minimum of €50 million annually starting in 2027, either through dividends or share buybacks. This plan is supported by a robust net liquidity position exceeding €1.6 billion, providing strategic flexibility.

Analysts Respond with Upgraded Price Forecasts

The strong results have prompted positive reactions from equity researchers. Constantin Hesse, an analyst at Jefferies, reiterated a "Buy" rating and raised his price target from €38 to €50. RBC analyst Colin Moody suggested that consensus estimates for 2026 could see mid-teens percentage increases.

The market reaction was immediate and powerful. Nordex shares soared to their highest level since mid-2002, leading the MDAX index with a single-day gain of 17.35%.

Short Sellers Maintain Contrary Positions

Despite the fundamental strength displayed, some hedge funds have increased their short positions against Nordex, indicating lingering skepticism. D. E. Shaw & Co. raised its short bet to 1.02% from 0.8%, while LMR Partners increased its position to 0.63% from 0.54%. Both adjustments were made on February 25th, just prior to the earnings release.

This caution may reflect the stock's already significant appreciation; with a gain of approximately 39% since the start of the year, Nordex ranks among the top ten performers in the MDAX. The company's ability to confirm its ambitious margin targets throughout the current year will likely be the decisive factor for its future share price performance.