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 41
Target price on sight of:	12 months
Last rating change:
Analyst:	Sarah Hellemann

Q2 26: Broad-based growth accelerated by tungsten catalyst

Yesterday, INDUS released its H1 26 report. As outlined by preliminary figures published end of July, Q2 came in exceptionally strong. In detail:

Strong order intake across segments. Order intake rose by 29.7% yoy, led by pricing related higher order values at BETEK and broad improvements across portfolio companies. The backlog rose by 18.6% yoy to € 789m and H1 book-to-bill to 1.14x (eNuW: 1.07x; H1'25 1.03x).

Strong Q2 performance. Sales grew by 20.6% yoy to € 524m. This was mainly driven by an exceptional Materials Solutions performance especially supported by portfolio company BETEK. This included 2pp of inorganic growth from acquisitions. Adj. EBITA soared by 160% yoy to € 81.1m, mainly driven by significantly stronger margins in Material Solutions orders. The adj. EBITA margin expanded by 8.3pp to 15.5%.

Materials Solutions soared from tungsten special situation. Sales surged by 47.4% yoy to € 209m (eNuW: € 202m), mainly driven by pricing effects in tungsten products of portfolio company BETEK, but also volume and market share gains. Notably, other portfolio companies in the segment also cumulatively contributed positively. Adj. EBITA expanded by 441% yoy to € 56.3m (eNuW: € 55.3m), largely driven by higher margins on BETEK orders. The adj. EBITA margin more than tripled, up 19.6pp to 26.9%.

Engineering proved resilient in a challenging market environment. The segment grew by 9.1% yoy to € 149m (eNuW: € 147m) in sales, partially driven by inorganic growth of 5.5% yoy, but also higher organic growth compared to the German engineering sector. Adj. EBITA improved 10.5% yoy to € 10.5m (eNuW: € 8.1m), slightly disproportionate to revenue growth. The segment slightly raised its adj. EBITA margin by 0.1pp yoy to 7.1%.

Infrastructure benefitted from above-average temperatures. Sales rose by 6.3% yoy to € 166m yet came in slightly behind our estimate of € 175m, as both regular growth and the warm-June effect were less pronounced than assumed. In June, above-average temperatures had caused an upturn in building inlet and sealing systems business as well as air-conditioning devices. Inorganic growth contributed 1.8% from acquisitions made in 2025. Adj. EBITA strengthened by 26.7% yoy to € 20.9m (eNuW: € 18.7m), supported by a mix of higher demand disproportionately reflecting on the bottom-line and positive product mix-effects. The adj. EBITA margin rose by 2pp yoy to 12.6%.

FCF improved by € 37.2m to € -36.9m at end of Q2, compared to the FCF in Q1, which had been impacted by high working capital investments. The improvement was significantly above the + € 15.7m in Q2 2025, as the operating CF strengthened by 57.6% yoy to € 44.6m.

Special situation reflects in strong EPS contribution. INDUS delivered a Q2 EPS contribution of € 1.85/share (up 270% yoy; eNuW € 1.91), bringing total YTD EPS to € 2.49 (+ 119.5% yoy). In our view further strong EPS development in H2 26 could provide potential for accelerated inorganic growth (in addition to only € 16.6m of the € 50m cash budget spent so far) and/or higher-than-usual shareholder returns. Reiterating BUY at an unchanged PT of € 41.

You can download the research here: indus-holding-ag-2026-08-13-previewreview-en-84b5b
For additional information visit our website: https://www.nuways-ag.com/research

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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