Original-Research: INDUS Holding AG (von NuWays AG): BUY

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Original-Research: INDUS Holding AG - from NuWays AG

04.05.2026 / 09:00 CET/CEST

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Classification of NuWays AG to INDUS Holding AG

Company Name: INDUS Holding AG

ISIN: DE0006200108

Reason for the research: Update

Recommendation: BUY

Target price: EUR 37.0

Target price on sight of: 12 months

Last rating change:

Analyst: Christian Sandherr

Material Solutions surprises in Q1, FY26 guidance up

INDUS published its Q1 prelims on Thursday, surprising with a performance

beat in Material Solutions related to the ongoing special situation

affecting tungsten-related products of BETEK. In detail:

Q1p revenue rose 9.7% yoy to EUR 442m (eNuW: EUR 425m), driven mainly by

significant price increases in Material Solutions. To recap, BETEK (51% of

Material Solutions sales in FY25) had already proven largely resilient to

the tungsten supply situation in H2 25, with a dynamic and proactive

mitigation approach. Infrastructure and Engineering developed in line with

guidance. We view Infrastructure to have grown moderately yoy, due to

favorable weather conditions. In Engineering positive first-time revenue

consolidation effects are seen to mitigate continued underlying demand

softness, while typical seasonality holds. From acquisitions, we estimate

inorganic first-time group revenue at approx. EUR 8.7m (eNuW).

Q1p adj. EBITA nearly doubled to EUR 42.5m (eNuW: EUR 25.7m). The adj. EBITA

margin improved by 3.4pp yoy to 9.6%. Here, the price increases in Material

Solutions clearly outweighed the raw material cost increases recorded in the

quarter. In our view, this was supported by minor margin improvements in

Engineering (eNuW: +3bp) and Infrastructure (eNuW: +3bp) as well as cautious

cost management and operational excellence measures across the group. The

Free Cash Flow decreased by EUR 50.5m to EUR -74.1m, due to raised Working

Capital.

Seizing the opportunity and seeking a larger market share in tungsten

products. Currently, some of BETEKs smaller competitors are signaling quiet

retreats from tungsten products, opening up opportunities. BETEK and larger

competitors are signaling their commitment to maintaining in the market.

This could reflect in volume increases, despite delays and cancellations

from some customers. We view the decision of INDUS to maintain supply

capacity as sensible. Risen Working Capital is seen as a temporary fallout

from this decision. Although part of the increase is also related to

seasonal factors (i.e. Infrastructure ramping up for stronger performance in

the summer).

FY26 guidance raised. FY26 revenue is to come in between EUR 1.85bn and EUR

2.05bn (previously EUR 1.8bn to 1.95bn). Adj. EBITA margins are expected to

come in higher between 8-10% (previously 7.5% to 9.5%), resulting in FY 26

adj. EBITA of EUR 160m to EUR 190m (previously: EUR 150m to EUR 170m). We view this

raised guidance as realistic, given the strong price-driven momentum in

Materials Solutions and adjust our own estimates in line of the

aforementioned developments to EUR 1.92bn in revenue (eNuW; previously EUR

1.83bn) and EUR 179m (eNuW; previously EUR 167m), implying an adj. EBITA margin

of 9.3%.

INDUS clearly proves dynamic and resilient amid current special situations.

Despite geopolitical developments having raised general macro uncertainty

once again, a somewhat soft industry data backdrop in mechanical engineering

outlined by VDMA as well as seasonal patterns influencing developments,

INDUS performed strong in Q1 26. Net positive effects from volume and

pricing provide short-term positive catalysts for Material Solutions.

Maintaining BUY while raising PT to EUR 37.0 (previously EUR 34.5), based on

FCFY 26e.

You can download the research here:

https://eqs-cockpit.com/c/fncls.ssp?u=3b7105da050e4d0a65da5dc6e415f91a

For additional information visit our website:

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 Interessenkonflikte nach § 85 WpHG beim oben

analysierten Unternehmen befindet sich in der vollständigen Analyse.

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2320040 04.05.2026 CET/CEST

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