Nordex turns the corner: double-digit margins, US re-entry, and a German policy tailwind

Q2 2026 shows a company executing on all cylinders – but the real story is the new German grid package and what it means for the order pipeline.

NDX1.DE · Earnings Call · 2026-07-29

A quarter that validates the trajectory

Nordex delivered another strong quarter in Q2 2026, with grid package–related optimism underpinning management's confidence. Revenue rose 16% year-on-year to €2.2 billion, and EBITDA margin hit 10.3%, up 450 basis points from a year ago. As CFO Ilya Hartmann put it, the new €2.5 billion MGF facility is "a token of trust" – a reflection of the company's improved financial standing after years of repair. The order intake of 3.1 GW (+32% YoY) – including a meaningful re-entry into the US market – and a service business now covering over 50 GW under service give visibility into the next few years.

"Our view on to the association and to the government is you need to build a ton of renewables, you need to build a lot of grid in order to reduce the dependency and reduce the price for consumers and the industry." – CEO José Luis Blanco on the German draft EEG and grid package.
Jose Luis Blanco, CEO · 2026-07-29

This quarter, the company crossed the 10% EBITDA margin threshold for the first time in years, “exceeding the 10% threshold and improving by 450 basis points compared to last year.” — Jose Luis Blanco, CEO · 2026-07-29 The result was net profit of €111 million, up €80 million year-on-year, and free cash flow of €165 million. The balance sheet now holds €1.7 billion in net cash. The trajectory is clear: Nordex is no longer an asset-restructuring story but a cash-generating, market-share-gaining player.

Germany: a new catalyst

A pivotal development since the full-year results is the publication of the draft EEG and grid package in Germany. Management calls it "cautiously positive," pointing to “higher auction volumes and greater clarity around grid-related topics.” — Jose Luis Blanco, CEO · 2026-07-29 This is a company-specific catalyst, not visible in the global keyword set. The price discovery mechanism in auctions is being watched closely; CEO José Luis Blanco noted in the Q&A that if grid curtailment risks are capped, it reduces uncertainty for financiers. "At least there is a cap, and it's better to have a cap than having uncapped figures to price that risk." This could unlock a fresh wave of German orders, extending an already healthy backlog. The company's exposure to Germany is substantial, and a larger auction pipeline directly feeds its U.S. order ambitions – though the US market is a separate story.

US re-entry is bearing fruit

After years of rebuilding its brand and product quality, Nordex secured around 800 MW of US orders in the first half of 2026. The Iowa plant is ramping up, and management is clear that margins on these orders are comparable to Germany – “ballpark similar profitability as Germany.” — Jose Luis Blanco, CEO · 2026-07-29 This is a notable development given the prior narrative of US being a "safety net" rather than a growth driver. In the February call, CEO Blanco was already optimistic: “I was 2 weeks ago there meeting customers. And I'm very pleased with the turnaround of the brand in the U.S. market after facing certain difficulties... The current Delta platform is delivering market availability.” — Jose Luis Blanco, CEO · 2026-02-25 Now the orders are landing, and the target of 20% market share in the US is reiterated. However, the US tariff situation remains ambiguous. CFO Ilya Hartmann noted, "When you see those orders apparently or obviously not hindering too many customers from moving ahead. So it's a very important determination, but customers have just decided to go ahead." The long-term US wind market is driven by data-center electricity demand – a theme that also shows up in global price tapes, but Nordex's role is still emerging.

Financial strength as a competitive advantage

The new €2.5 billion guarantee facility, signed in July, is a clear upgrade: larger, longer (5 years), and materially cheaper – CFO Hartmann estimated interest cost per bond could fall 60-65% from the peak under the old MGF. This strengthens the fortress balance sheet that management has prioritized since the shareholder-return policy was introduced in February. As he said then: “We try to share with you what our view is about the priorities, which is having a balance sheet fortress, if you will, to deal with cycles.” — Jose Luis Blanco, CEO · 2026-02-25 Now that the balance sheet is solid, attention turns to capital allocation – but management remains deliberately non-committal, deferring details to the full-year call. The service business, with a 19.7% EBIT margin and average tenure of contracts now above 14 years, provides a stable recurrent revenue base. Management sees a path to cross the 20% margin target, though it's a slow-moving journey. The milestone of gigawatts under service exceeding 50 GW – representing over 14,000 turbines – is a structural advantage that compounds over time.

What changed and why it matters

This quarter is differentiated by three things: (1) a double-digit margin that is now within the midterm target range of 10-12%, not just a one-off; (2) a credible US re-entry with orders in hand, adding a new growth engine; and (3) a German policy environment that could prolong the order boom. The combination of these – together with the strengthened balance sheet – suggests Nordex has entered a self-reinforcing cycle where execution credibility lowers financing costs, which supports more competitive bidding, which wins more orders. Whether that leads to a re-rating is for the market to decide, but the operational engine is clearly firing on all cylinders.