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Original-Research: INDUS Holding AG - from NuWays AG

13.05.2026 / 09:00 CET/CEST
Dissemination of a Research, transmitted by EQS News - a service of EQS
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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
Target price on sight of: 12 months
Last rating change:
Analyst: Sarah Hellemann

INDUS kicks off FY26 with a strong Q1 and raised guidance

Yesterday, INDUS released its Q1 report, following the release of
preliminary revenue and adj. EBITA on April 30th. Key details from this
strong Q1-release:

Kicking off the year with a strong Q1 performance, Q1 revenue grew by 9.4%
yoy to EUR 442m, driven by improvements across segments. Inorganic growth
contributed 2.2% yoy. The adj. EBITA rose by 70.7% yoy to EUR 42.5m, with the
adj. EBITA margin increasing by 3.4pp yoy. Due to BETEK's successful
management of the price increase in tungsten carbide as a key raw material,
Material Solutions showed significantly elevated margins.

Material Solutions adj. EBITA margin came in hiked by 7.9pp yoy to 16.8%
(eNuW: 14.7%) through positive pricing and volume developments in BETEK (51%
of Material Solutions revenue in FY25). This clearly underlines once again
BETEK's proactive and dynamic management of the special situation concerning
tungsten. Not only has it established sufficient supply, despite significant
elevation of cost. Backed by the holding, it is seizing the opportunity to
gain market share in tungsten-related products, as smaller competitors
partially signal silent retreat. Segment revenue rose by 17.5% to EUR 168m
(eNuw: EUR 174m) and adj. EBITA soared by 122% yoy to EUR 28.2m (eNuW: EUR 24.7m).

Engineering beat growth expectations with revenue of EUR 131m (eNuW: EUR 124m),
up 6.1% yoy, based on stronger than anticipated organic growth of 2.3% yoy.
Inorganic growth contributed + 3.8% yoy. The adj. EBITA margin reached only
3.9% (eNuW: 5.5%), impacted by seasonality and capacity utilization, leading
to an adj. EBITA of EUR 5.1m (eNuW: EUR 6.8m), down 20.3% yoy.

Infrastructure beat bottom-line expectations. The adj. EBITA rose by 36% yoy
to EUR 13.6m, due to cost optimization, efficiency gains and the successful
repositioning of a portfolio company. Revenue grew by 6.1% yoy to EUR 143m
(eNuW: EUR 144m) largely in line with expectations and supported by inorganic
growth of 5.1% yoy from FY25 acquisitions.

The order backlog rose by 24.5% yoy to EUR 826m, supported by strong order
intake, up 15.4% yoy to EUR 525m (book-to-bill ratio 1.19). This was mainly
driven by growth in tungsten carbide-tipped wear tools supporting a 28.3%
yoy increase in Material Solutions orders and strong demand for digital
infrastructure products leading to a 25.5% yoy increase in Infrastructure
orders. Engineering orders came in slightly lower by 3.8% yoy at EUR 165m,
while maintaining a strong book-to-bill for the segment at 1.26x.

Working Capital increased by EUR 57.8m yoy, reflecting investments in
inventory of c. EUR 68.5m yoy. C. EUR 48m (eNuW) of this should be related to
higher tungsten-related material prices and risen tungsten purchase volume.
Under current circumstances, we view increased procurement of tungsten at
higher prices as essential to raising BETEK's market share against small
competitors. While the pricing volatility could also pose risks of
normalization, we view the demand for tungsten to remain high in the months
to come. This investment into inventory has a strong negative impact on the
Free Cash Flow, reported at EUR -74.1m, it is seen as an investment into
stronger organic growth in BETEK for the short- to mid-term.

Starting strong into the year on a positive signal, the increased FY26
guidance reflects the expectation of solid underlying developments and a
short-term catalyst from the tungsten special situation. FY26e revenue is
anticipated at EUR 1.92 bn (eNuW), implying growth of 10.7% (eNuW). Adj. EBITA
is seen to rise by 21.1% yoy to EUR 179m (eNuW), supported by a stronger
topline, disciplined cost management, operational excellence improvements
and inorganic first-time contributions. Over the course of the year, we
expect the topline to strengthen, driven by positive price and volume
effects from organic growth, seasonality and first-time revenue
contributions from acquisitions announced so far. Confirming BUY at a PT of
EUR 37.0, based on FCFY 26e.

You can download the research here:
https://eqs-cockpit.com/c/fncls.ssp?u=2191ca0d3fb9293b239563d83d8a156a
For additional information visit our website:
https://www.nuways-ag.com/research

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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2326660 13.05.2026 CET/CEST

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