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Original-Research: INDUS Holding AG - from NuWays AG

04.05.2026 / 09:00 CET/CEST
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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 37.0
Target price on sight of: 12 months
Last rating change:
Analyst: Christian Sandherr

Material Solutions surprises in Q1, FY26 guidance up

INDUS published its Q1 prelims on Thursday, surprising with a performance
beat in Material Solutions related to the ongoing special situation
affecting tungsten-related products of BETEK. In detail:

Q1p revenue rose 9.7% yoy to EUR 442m (eNuW: EUR 425m), driven mainly by
significant price increases in Material Solutions. To recap, BETEK (51% of
Material Solutions sales in FY25) had already proven largely resilient to
the tungsten supply situation in H2 25, with a dynamic and proactive
mitigation approach. Infrastructure and Engineering developed in line with
guidance. We view Infrastructure to have grown moderately yoy, due to
favorable weather conditions. In Engineering positive first-time revenue
consolidation effects are seen to mitigate continued underlying demand
softness, while typical seasonality holds. From acquisitions, we estimate
inorganic first-time group revenue at approx. EUR 8.7m (eNuW).

Q1p adj. EBITA nearly doubled to EUR 42.5m (eNuW: EUR 25.7m). The adj. EBITA
margin improved by 3.4pp yoy to 9.6%. Here, the price increases in Material
Solutions clearly outweighed the raw material cost increases recorded in the
quarter. In our view, this was supported by minor margin improvements in
Engineering (eNuW: +3bp) and Infrastructure (eNuW: +3bp) as well as cautious
cost management and operational excellence measures across the group. The
Free Cash Flow decreased by EUR 50.5m to EUR -74.1m, due to raised Working
Capital.

Seizing the opportunity and seeking a larger market share in tungsten
products. Currently, some of BETEKs smaller competitors are signaling quiet
retreats from tungsten products, opening up opportunities. BETEK and larger
competitors are signaling their commitment to maintaining in the market.
This could reflect in volume increases, despite delays and cancellations
from some customers. We view the decision of INDUS to maintain supply
capacity as sensible. Risen Working Capital is seen as a temporary fallout
from this decision. Although part of the increase is also related to
seasonal factors (i.e. Infrastructure ramping up for stronger performance in
the summer).

FY26 guidance raised. FY26 revenue is to come in between EUR 1.85bn and EUR
2.05bn (previously EUR 1.8bn to 1.95bn). Adj. EBITA margins are expected to
come in higher between 8-10% (previously 7.5% to 9.5%), resulting in FY 26
adj. EBITA of EUR 160m to EUR 190m (previously: EUR 150m to EUR 170m). We view this
raised guidance as realistic, given the strong price-driven momentum in
Materials Solutions and adjust our own estimates in line of the
aforementioned developments to EUR 1.92bn in revenue (eNuW; previously EUR
1.83bn) and EUR 179m (eNuW; previously EUR 167m), implying an adj. EBITA margin
of 9.3%.

INDUS clearly proves dynamic and resilient amid current special situations.
Despite geopolitical developments having raised general macro uncertainty
once again, a somewhat soft industry data backdrop in mechanical engineering
outlined by VDMA as well as seasonal patterns influencing developments,
INDUS performed strong in Q1 26. Net positive effects from volume and
pricing provide short-term positive catalysts for Material Solutions.
Maintaining BUY while raising PT to EUR 37.0 (previously EUR 34.5), based on
FCFY 26e.

You can download the research here:
https://eqs-cockpit.com/c/fncls.ssp?u=3b7105da050e4d0a65da5dc6e415f91a
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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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