Classification of NuWays AG to Nabaltec AG

Company Name:	Nabaltec AG
ISIN:	DE000A0KPPR7
Reason for the research:	Update
Recommendation:	BUY
Target price:	EUR 16.0
Target price on sight of:	12 months
Last rating change:
Analyst:	Christian Sandherr

Q1 prelims: Weak macro still weighs on business operations

Nabaltec published final Q4 figures, confirmed the FY26 guidance and released preliminary Q1 numbers, which show improvements compared to the end of last year but are still burdened by various headwinds.

To recap, Q4 burdened by a particularly weak December. Q4 group sales were down 7.8% yoy at € 41.9m as a result of a particularly weak Functional Fillers segment (-10.5% to € 30.4m), as demand for fine hydrates (core product) experienced a significant slowdown during the last few weeks of the year. This should have largely been driven by cautious order behaviour of key customers. Specialty Alumina recorded a slight sales increase (0.6% yoy to € 11.5m) as demand should have bottomed our. FY25 sales down 3.2% yoy to € 197m.

This coupled with temporary elevated maintenance costs at the group’s German plant triggered a 9.4pp EBIT margin decline to a mere 2.8%. FY25 EBIT margin of 7.7%.

The operating cash flow of € 15.8m (vs € 35m in FY24) reflects the weaker operating performance but also some working capital outflows. Elevated investments into production capacity build-outs (mainly for the viscosity optimized gap fillers) pushed FCF into negative territories (€ -9m). Nevertheless, cash at the end of the year stood at € 72.3m; net debt of € 18m.

First look into FY26e, challenges prevail, yet with improvements in sight. Nabaltec also published preliminary Q1 figures with € 53.2m sales (-2.7% yoy) and an EBIT margin of 5.2% (-2.3pp yoy) as demand across the group’s products remains subdued and higher energy prices, particularly gas, and rising depreciation (due to recent investments) burden the bottom line.
Positively, demand for fine hydrates is seen to sequentially improve carried by low inventories but also rising investments into data centers. This is also inline with recent comments from Nexans’ (major European cable producer) management, which highlighted a demand pick-up across France, Italy and Spain during recent weeks.

FY26 guidance confirmed. Management expects to grow the company’s top-line by 4-6% (eNuW: 4.2%, 6.8% implied growth during Q2-Q4), anticipating higher sales volumes for ATH (higher demand across key end markets) but also the gap filler (eNuW: Functional Fillers +6%). We model largely flat sales for Specialty Alumina (high refractory exposure) as slightly higher volumes compensate for lower sales prices. The lower end of the EBIT margin guidance of 5-7% seen rather conservative (eNuW) but also factors in uncertainties from the scheduled maintenance at the waste incineration plant next to its site in Germany (key supplier of production relevant steam). Longer disruptions would require NTG to produce their own steam using LNG, which currently experiencing significant price increases.

We confirm our BUY rating with an unchanged € 16 PT based on FCFY26e.
 

You can download the research here: nabaltec-ag-2026-05-05-previewreview-en-2fc59
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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Offenlegung möglicher Interessenkonflikte nach § 85 WpHG beim oben analysierten Unternehmen befindet sich in der vollständigen Analyse.
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