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Original-Research: Nabaltec AG - from NuWays AG

24.11.2025 / 09:00 CET/CEST

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

Group.

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Classification of NuWays AG to Nabaltec AG

Company Name: Nabaltec AG

ISIN: DE000A0KPPR7

Reason for the research: Update

Recommendation: BUY

Target price: EUR 18

Target price on sight of: 12 month

Last rating change:

Analyst: Christian Sandherr

Q3 in line with expectations, margins remains solid

Nabaltec reported Q3 figures that were largely inline with our estimates and

the company's FY25 guidance. Overall, demand remains subdued while capacity

expansions temporarily weight on FCF generation. Here are the key takeaways:

Q3 group sales declined by 2.4% yoy to EUR 48.6m (eNuW: EUR 49.3m). Functional

Fillers sales of EUR 35.2m (-1.7% yoy) were impacted by a further

deterioration of boehmite revenues, which should be down roughly 30% for

FY25e (eNuW: EUR 8.5m vs EUR 12.5m in FY24; Q3 '25 EUR 2.3m). In contrast,

viscosity optimized hydroxides continued to grow, surpassing boehmite for

the FY in regards to sales contributions. ATH showed further slight

improvements. Mind you, the company should strongly benefit from increased

demand from extensive data center investments. Specialty Alumina, which i

largely dependent on the refractory industry, recorded Q3 sales of EUR 13.4m,

down 4% yoy. 9M group sales stood at EUR 155m, -1.9% yoy.

EBIT in the third quarter stood at EUR 5.1m, a 13.9% yoy decline. Yet, the

margin of 10.6% was only slightly below last year's figure of 11.3% thank

to an improving gross margin due lower energy costs, offsetting higher

personell and project related expenses. 9M margin of 9% remains at the upper

end of the FY25 guidance of 7-9%.

Cash at the end of Q3 was impacted by the lower operating result but also

temporarily higher working capital. Capex remains high (9M: EUR 17.7m) as a

result of the last tranche of Nabaltec's growth initiative. Mind you, the

company is expanding its production capacities for the viscosity optimized

hydroxides and boehmite. While demand for the latter remains subdued, it'

important to note that the additional capacities can also be used to produce

fine ATH, which should record further sustainable growing demand. Net debt

at the end of Q3 was EUR 15m.

The FY25 guidance was confirmed and looks reachable, especially on margins.

Management expects sales to decrease by up to 2% with an EBIT margin of

7-9%.

While the valuation of Nabaltec's shares remains arguably low, the sentiment

across key end markets as well as the low visibility temporarily prevent a

re-rating. Nevertheless, the prospects remain bright. The company is the

European market leader for environmental flame retardants, which record

sustainable demand growth backed by several trends (AI being one of them).

Investments from Germany's planned EUR 500bn infrastructure bill should turn

into notable tailwinds. While boehmite sales have been declining for several

years, the product continues to have potential during the mid-term,

depending on European ramp up of battery cell productions. From 2026e

onwards, first positive implications as well as general demand

normalizations are seen to materialize, eNuW.

BUY with an unchanged EUR 18 PT based on FCFY 2025e.

You can download the research here:

https://eqs-cockpit.com/c/fncls.ssp?u=dc7d5cc06b60df6acb065b85a05bbf91

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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2234638 24.11.2025 CET/CEST

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