INDUS Holding AG Surprises with Strong Q1 Performance

INDUS Holding AG has reported a significant improvement in its Q1 financial results, driven by robust performance in its Material Solutions division. Despite challenging conditions in the tungsten supply market, revenue increased by 9.7% year-over-year to €442 million, surpassing expectations. This growth was largely attributed to price increases within Material Solutions, which accounted for 51% of sales.

The company's adjusted EBITA nearly doubled to €42.5 million, resulting in an improved margin of 9.6%. This was achieved despite rising raw material costs, as INDUS implemented effective cost management strategies. However, free cash flow decreased by €50.5 million due to increased working capital, partly influenced by seasonal factors.

INDUS has revised its guidance for FY26, now anticipating revenues between €1.85 billion and €2.05 billion, with adjusted EBITA margins reaching 8-10%. The company's strategic decision to maintain supply capacity amid market changes is seen as a positive move to capture larger market share in tungsten products.