Classification of NuWays AG to Nabaltec AG

Company Name:	Nabaltec AG
ISIN:	DE000A0KPPR7
Reason for the research:	Update
Recommendation:	BUY
Target price:	EUR 16
Target price on sight of:	12 months
Last rating change:
Analyst:	Christian Sandherr

Q1 out: Demand picking up, data centres as tailwinds

Nabaltec published final Q1 figures, in line with its prelims. The start into FY26 showed sequential demand improvements yet also headwinds from raw materials and energy prices. The FY guidance was confirmed, pointing towards sales growth and solid margins during the remainder of the year.

Sales were down 2.7% yoy to € 53.2m, as both segments recorded declining sales. Functional Fillers' sales of € 39.4m were down 2.1% yoy as demand for boehmites continued to remain weak (-8.5% yoy). On top, temporary cautious order behaviour of key fine hydroxides customers triggered an 8.4% lower sales contribution. Positively, viscosity optimized hydrates once again recorded strong growth of 28% yoy. Sales of Specialty Alumina decreased 4.6% yoy to € 14.4m as a result of continued weak steel demand, which weighed on the refractory market.

EBIT of € 2.7m (-34% yoy), which corresponds to a margin of 5.2%, was burdened by risen energy prices but also higher levels of depreciation stemming from the ongoing production capacity build-outs.

Improvements to come with Q2. As highlighted during the earnings call, demand across most product groups is seen to pick up with Q2. This should be particularly impactful with its core product, fine hydroxides, which are used as environmental friendly flame retardants in cables within data centres. With the global data centre build-outs accelerating, so should the demand for suitable cables (reaffirmed by key cable manufacturers such as Nexans and Prysmian). Management also emphasized that Speciality Alumina demand has passed the trough.

With this, the FY sales growth guidance of 4-6% (implied 6.6-9.3% growth during remainder of the year) looks achievable at the lower end (eNuW: 4.2% growth). With Q1 likely being the weakest quarter next to Q4, the lower end of the EBIT margin guidance range of 5-7% seems rather conservative in our view, 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 is currently experiencing significant price increases.

Attractive long-term set-up. Nabaltec is a globally leading player in the market for environmentally friendly flame retardants, which is driven by tight regulations and structurally growing demand, especially in the area of data centres, compensating for weaker public spending. New products such as the viscosity optimized hydrates add additional growth levers to the story. Despite the currently challenging market for specialty chemical companies, Nabaltec stands out with a strong balance sheet, still good margins and plenty of capacity (€ 300m revenue potential, eNuW) to be utilized during the mid- to long-term, not adequately reflected by the current valuation.

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

You can download the research here: nabaltec-ag-2026-05-22-previewreview-en-d5b2b
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
++++++++++
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.
++++++++++