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Original-Research: INDUS Holding AG - from NuWays AG

26.03.2026 / 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 34.5
Target price on sight of: 12 months
Last rating change:
Analyst: Christian Sandherr

FY26 guidance: Good op. performance despite headwinds; chg.

INDUS reported FY25 results with a solid FY 26 guidance reflecting the
current challenges. In detail:

Management reaffirmed its strategy "Empowering Mittelstand". Five
acquisitions made in 2025 were followed by PRO VIDEO and Amira so far. We
expect INDUS to continue its portfolio growth with at least two further
acquisitions (eNuW) in FY26e. Smaller divestments of nonperforming assets
(total 1-2% group sales) look possible.

INDUS met its FY25 guidance of EUR 1.7bn to 1.85bn revenue and EUR 130m to 165m
adj. EBITA with group revenue of EUR 1.74bn (up 0.8% yoy, +2.1% inorganic
growth yoy) and group adj. EBITA of EUR 147.8m (down 3.8% yoy). The implied
adj. EBITA margin of 8.5% was pressured by numerous economic and tariff
related challenges.

Material Solutions outperformed expectations with EUR 554.5m revenue (vs. EUR
542.2m), despite a 1.8% decline from the IMECO discontinuation, and grew
adj. EBITA 4% yoy to EUR 51.9m. Infrastructure was as expected, delivering
6.7% revenue growth to EUR 597.2m and adj. EBITA of EUR 62.1m (slightly down yoy
but above forecasts, supported by a EUR 2.6m one-off gain). Engineering lagged
on revenue (EUR 583m vs. EUR 602m expected, -2.3% yoy) in a weak macro
environment, though adj. EBITA of EUR 53.7m still exceeded expectations.

Q4 was strong, with revenue up 5% yoy to EUR 461.5m and adj. EBITA up 20.8% to
EUR 43.6m. Infrastructure led growth, while Material Solutions posted the
strongest EBITA increase (+53% yoy) due to the absence of prior-year
one-offs. Engineering showed modest revenue growth but weaker-than-expected
seasonality, while profitability improved on higher capacity utilization.

Free Cash Flow beat the target of EUR 90m at EUR 124m, despite falling 8.4% yoy.
EPS came in at + 33.8% yoy, EUR 2.77/share, due to positive tax effects. INDUS
announced a dividend of EUR 1.3/share to be paid in 2026, exceeding the
previous dividend of EUR 1.2/share. Order intake rose by 15.1% in FY25 and
backlog was up 10.9% yoy at EUR 706m thanks to several larger orders from US
customers (2-3 years deliverables).

Management issued a FY26 guidance of EUR 1.8bn to EUR 1.95bn revenue and EUR 150m
to EUR 170m adj. EBITA. Free Cash Flow is targeted at EUR 70m, as steep raw
material price increased are seen to materially hike w/c. The segment
guidance indicates engineering to continue to perform weaker than originally
expected by us. We hence slightly reduce our revenue estimates to EUR 1.83bn.
With a tight cost control, efficiency measures and without acquisition costs
incurred in FY 25, adj. EBITA should rise to EUR 166.8m (eNuW) despite
significant headwinds from Material Solutions (largely Tungsten).

In sum, INDUS should retain its role as successful serial acquirer for the
German Mittelstand. A solid operational performance during a challenging
macro environment underpins to upside once the cycle turns. BUY with a EUR
34.5 PT (old: EUR 35.5).

You can download the research here:
https://eqs-cockpit.com/c/fncls.ssp?u=6a3363f9ac4a8f2e31f3fe83844bcb5f
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
++++++++++
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.
++++++++++

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2298100 26.03.2026 CET/CEST

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