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Original-Research: INDUS Holding AG - from NuWays AG

01.12.2025 / 09:00 CET/CEST

Dissemination of a Research, transmitted by EQS News - a service of EQ

Group.

The issuer is solely responsible for the content of this research. The

result of this research does not constitute investment advice or an

invitation to conclude certain stock exchange transactions.

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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 34

Target price on sight of: 12 month

Last rating change:

Analyst: Christian Sandherr

INDUS' deal activity likely to accelerate; BUY

INDUS surprised investors with a small note in Q3 2025 results, hinting that

further M&A activities in Q4 2025 could be possible after fulfilling

expectations in terms of deal count earlier in the year. Looking ahead,

accelerating deal activity should put INDUS on track to reach its EUR 500m

spending target until the end of 2030.

Q4 2025 deal outlook. Given the implications of the note and the time

remaining in the year, it is likely that the company already had several

deals in pipeline and was confident about signing at least one before the

end of Q4, in our view. Looking at the 9m financial statements we believe at

least EUR 30-35m to be available for possible additional deals (so far EUR 53m

were spend ytd.). 9m cash stood at roughly EUR 200m with op. cash flow of EUR

80m.

Typical deal behavior for the company includes buying a stake in a target

first and acquiring the residual equity over time. Yet, full immediate

consolidation is probable given past deal history. Deal sizes remain

uncertain as the company may have an appetite for larger deals in order to

drive strategic growth but has completed small deals in the past as well.

Possible focus areas are likely to stretch across segments. In Engineering,

adding to their automation technology could be of interest, with recent

studies showing CAGR prospects of 10-11% until 2030 of the respective niche.

Currently low order numbers (as indicated by VDMA mechanical engineering

numbers) and price competition may temporarily weigh on the sector'

valuations. As a strategic investor, INDUS could take advantage of these

developments. In Materials Solutions, BETEK's heavy weight and strong raw

material dependency, which was a significant detractor during 9m 2025, may

lead the company to seek additional diversification i.e. in synthetic and

composite materials, for which research studies indicate 7-8% CAGR until

2030. For the Infrastructure segment, energy supply infrastructure

construction with a projected CAGR of 7-8% to 2030 could be an interesting

addition to their exposure in Hauff Technik.

2026 Outlook. Next year, INDUS looks set to spend up to EUR 100m (eNuW), which

would be in line with the company's spending targets announced at its CMD

last year. Mind you, INDUS plans to spend a total of EUR 500m until the end of

2030 on M&A. With an average acquisition multiple of 7-7.5x EV/EBITA, the

company could add at least EUR 70m of EBITA during the next five years (v

FY24).

Overall, INDUS looks well positioned to deliver on its role as consolidator

of the German Mittelstand, grounded in a long track-record of sustainably

generating returns. With the pledged EUR 500bn of infrastructure spending

still in the cards, currently one of the historically best period for a

buy-and-build strategy (temporarily lower performance coupled with an

increasing need for succession solutions) and a solid operational

performance despite challenging end markets, INDUS remains a BUY with an

unchanged EUR 34 PT based on DCF.

You can download the research here:

https://eqs-cockpit.com/c/fncls.ssp?u=b062fba35544ec45b9e9b6348e990c3b

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 Abschlu

bestimmter Börsengeschäfte.

Offenlegung möglicher Interessenskonflikte nach § 85 WpHG beim oben

analysierten Unternehmen befinden sich in der vollständigen Analyse.

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2237792 01.12.2025 CET/CEST

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