Original-Research: Nabaltec AG - from NuWays AG 22.08.2025 / 09:00 CET / CEST Dissemination of a Research, transmitted by EQS News - a service of EQS Group.

Original-Research: Nabaltec AG - from NuWays AG

22.08.2025 / 09:00 CET/CEST
Dissemination of a Research, transmitted by EQS News - a service of EQS
Group.
The issuer is solely responsible for the content of this research. The
result of this research does not constitute investment advice or an
invitation to conclude certain stock exchange transactions.

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Classification of NuWays AG to Nabaltec AG

     Company Name:                Nabaltec AG
     ISIN:                        DE000A0KPPR7

     Reason for the research:     Update
     Recommendation:              BUY
     from:                        22.08.2025
     Target price:                EUR 18.00
     Target price on sight of:    12 months
     Last rating change:
     Analyst:                     Christian Sandherr

Final Q2 out // attractive valuation levels

Yesterday, Nabaltec released its final Q2 figures, which provide additional
insight into current operations. Here are the key takeaways:

Broad demand weakness, yet particularly pronounced within the boehmite
market. With its high dependency on the steel industry, the Specialty
Alumina segment recorded a yoy sales decline of 8%. While demand for ATH
remained largely flat, boehmite continued its downward trend. With only EUR
4.1m sales during the first half of 2025, boehmite seems on track to reach
only EUR 8-10m FY sales (vs. EUR 24m in FY21), a -22% CAGR. This is the result
of significant overcapacities from Chinese Estone, resulting in lower sales
prices, and the absence of demand growth as EV sales figures are far from
former expectations.

Improved gross margin thanks to notably lower energy costs: +4.6pp yoy,
+5.8pp qoq to 53.7%. While this trend is seen to partially level off during
H2, management still expects a better gross margin than seen in Q1. With
this, the mid-point of the FY25 EBIT margin guidance of 7-9% (eNuW: 8.5%)
should be within reach; H1 margin: 8.4%.

Cash further increasing, adding onto the already healthy balance sheet. At
the end of H1, cash stood at roughly EUR 91m, resulting in a EUR 0.4m net cash
position as operating cash flow remained strong at EUR 20.5m (-15% yoy) and
capex decreased by some EUR 3m to EUR 10.8m. As we expect higher investments
during H2 (eNuW: EUR 21m, last tranche of its growth initiative) and more
normalized payables, net debt is seen to come in at EUR 8m at the end of the
year.

Attractive prospects during mid- to long-term. Nabaltec is able to benefit
from growing demand for ATH on the back of tightening regulations across
core end markets, vast investments into data centers but also Germany's EUR
500bn infrastructure spending bill. The latter is seen to also turn into a
tailwind for the company's Speciality Alumina segment, which is strongly
tied to the European steel industry. However, we would not expect notable
contributions before the end of 2026e.

While current operations remain burdened, the valuation offers an attractive
entry opportunity ahead of the next cyclical upswing. Shares are trading at
a ~25% discount to their book value and on 7.4 EV/EBIT 2025e while also
providing a healthy balance sheet, still good profitability levels and
operating cash generation. As demand for its core products accelerates
again, the company is poised for strong free cash flow generation. Mind you,
with the completion of the current investment initiative, the company has
production capacities that allow up to EUR 300m sales.

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=1bfe527aff1292ee5949dd6f21987e79
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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 Interessenskonflikte nach § 85 WpHG beim oben
analysierten Unternehmen befinden sich in der vollständigen Analyse.
++++++++++

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2187410 22.08.2025 CET/CEST