Original-Research: Nabaltec AG (von NuWays AG): BUY
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Original-Research: Nabaltec AG - from NuWays AG
24.11.2025 / 09:00 CET/CEST
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Classification of NuWays AG to Nabaltec AG
Company Name: Nabaltec AG
ISIN: DE000A0KPPR7
Reason for the research: Update
Recommendation: BUY
Target price: EUR 18
Target price on sight of: 12 months
Last rating change:
Analyst: Christian Sandherr
Q3 in line with expectations, margins remains solid
Nabaltec reported Q3 figures that were largely inline with our estimates and
the company's FY25 guidance. Overall, demand remains subdued while capacity
expansions temporarily weight on FCF generation. Here are the key takeaways:
Q3 group sales declined by 2.4% yoy to EUR 48.6m (eNuW: EUR 49.3m). Functional
Fillers sales of EUR 35.2m (-1.7% yoy) were impacted by a further
deterioration of boehmite revenues, which should be down roughly 30% for
FY25e (eNuW: EUR 8.5m vs EUR 12.5m in FY24; Q3 '25 EUR 2.3m). In contrast,
viscosity optimized hydroxides continued to grow, surpassing boehmite for
the FY in regards to sales contributions. ATH showed further slight
improvements. Mind you, the company should strongly benefit from increased
demand from extensive data center investments. Specialty Alumina, which is
largely dependent on the refractory industry, recorded Q3 sales of EUR 13.4m,
down 4% yoy. 9M group sales stood at EUR 155m, -1.9% yoy.
EBIT in the third quarter stood at EUR 5.1m, a 13.9% yoy decline. Yet, the
margin of 10.6% was only slightly below last year's figure of 11.3% thanks
to an improving gross margin due lower energy costs, offsetting higher
personell and project related expenses. 9M margin of 9% remains at the upper
end of the FY25 guidance of 7-9%.
Cash at the end of Q3 was impacted by the lower operating result but also
temporarily higher working capital. Capex remains high (9M: EUR 17.7m) as a
result of the last tranche of Nabaltec's growth initiative. Mind you, the
company is expanding its production capacities for the viscosity optimized
hydroxides and boehmite. While demand for the latter remains subdued, it's
important to note that the additional capacities can also be used to produce
fine ATH, which should record further sustainable growing demand. Net debt
at the end of Q3 was EUR 15m.
The FY25 guidance was confirmed and looks reachable, especially on margins.
Management expects sales to decrease by up to 2% with an EBIT margin of
7-9%.
While the valuation of Nabaltec's shares remains arguably low, the sentiment
across key end markets as well as the low visibility temporarily prevent a
re-rating. Nevertheless, the prospects remain bright. The company is the
European market leader for environmental flame retardants, which record
sustainable demand growth backed by several trends (AI being one of them).
Investments from Germany's planned EUR 500bn infrastructure bill should turn
into notable tailwinds. While boehmite sales have been declining for several
years, the product continues to have potential during the mid-term,
depending on European ramp up of battery cell productions. From 2026e
onwards, first positive implications as well as general demand
normalizations are seen to materialize, eNuW.
BUY with an unchanged EUR 18 PT based on FCFY 2025e.
You can download the research here:
https://eqs-cockpit.com/c/fncls.ssp?u=dc7d5cc06b60df6acb065b85a05bbf91
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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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Diese Meldung ist keine Anlageberatung oder Aufforderung zum Abschluss
bestimmter Börsengeschäfte.
Offenlegung möglicher Interessenskonflikte nach § 85 WpHG beim oben
analysierten Unternehmen befinden sich in der vollständigen Analyse.
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2234638 24.11.2025 CET/CEST
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