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Original-Research: INDUS Holding AG - from NuWays AG

04.11.2025 / 09:00 CET/CEST
Dissemination of a Research, transmitted by EQS News - a service of EQS
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The issuer is solely responsible for the content of this research. The
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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
from: 04.11.2025
Target price: EUR 34.00
Target price on sight of: 12 months
Last rating change:
Analyst: Christian Sandherr

Q3 preview: Weathering a difficult market environment

Indus is proving resilient among end market contractions. Notable
improvements in the material segment expected with improved tungsten
sourcing.
INDUS is set to report its Q3 figures on November 12th. Here is what to
expect:
Group sales are seen to come in at EUR 455m (9M: EUR 1.3 bn), implying 2.9 % yoy
growth including EUR 6.4m (eNuW) from the first-time consolidation of
acquisitions, and reflecting an expected mixed performance across segments.
Q3 EBIT of EUR 31.1m (9M: EUR 76m), which implies an EBIT margin of 6.8%
(-0.37pp yoy), looks set to decrease by 2.3% yoy, due to a higher personnel
cost ratio (32.5% vs. 29.2% in Q3 2024) following increased headcounts in
Engineering and Infrastructure in 2025, which were not offset by Materials.
Despite challenging procurement situations for certain raw materials, we
expect no material impact on margins.
Engineering sales should come in at EUR 147m, down 3.5% yoy, due to the still
weak market environment marked by cautious order behavior at the beginning
of the year. Nevertheless, thanks to the good order momentum from Q2, which
should partially persist in Q3, H2 sales should be in line with the
segment's usual seasonality, i.e. back-end loaded revenue recognition.
The Infrastructure segment is expected to grow by 5.6% yoy to EUR 157m (eNuW),
thanks to a moderate revenue momentum and strong order intake visible in H1,
while operating in a contracting construction environment. To recap,
permitting activity in Q2 was still muted, impacting Q3 revenues with 1-3
months delay. Hinting at stronger Q3 order intake, German building permits
were growing particularly strong in July and August with 31.7% and 5.3%
(both mom). The Eurozone Construction PMI also indicated that the
contraction should become slightly less severe during Q3.
The Materials Solutions segment is expected to grow by 7.2% yoy to EUR 152m in
Q3, a strong improvement compared to -8.9% in FY24. This should largely be
attributable to easing export restrictions and well-handled sourcing of
critical components. Overall, demand of key products as produced by BETEK
looks set to have remained high.
Looking ahead, a swift end to the US lockdown could end delays in newly
accelerated mining permitting, boosting mining tool demand during the
short-term. The tariff truce between China and US, affecting rare earth
materials, runs out on November 11th. As trade negotiations seem to progress
well, permanently lower export barriers could trigger improving material
availability. Most importantly, the pending release of funds from Germany's
infrastructure bill should turn into a notable tailwind, yet most likely not
before H2 2026 (eNuW).
FY25 guidance reachable. Taking into account the expected 9M performance
(eNuW EUR 1.3bn sales), gradual end market improvements and improved raw
material availability, the company should be on track to meet its guidance
(EUR 1.7 - 1.85bn sales). However, as our estimates indicate annual group
revenue of EUR 1.74bn, the lower end of the guidance appears to be a sensible
target. Confirming BUY at EUR 34 PT, based on DCF.

You can download the research here:
https://eqs-cockpit.com/c/fncls.ssp?u=09c7f6c856ae336819ee165d48838e3d
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 Abschluss
bestimmter Börsengeschäfte.
Offenlegung möglicher Interessenskonflikte nach § 85 WpHG beim oben
analysierten Unternehmen befinden sich in der vollständigen Analyse.
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