Nabaltec AG Faces Sales Decline Yet Remains Promising

NuWays AG has revised its research on Nabaltec AG, maintaining a "BUY" recommendation despite adjusted forecasts. Nabaltec has lowered its FY25 sales guidance due to an unfavorable foreign exchange effect and reduced demand from the industrial and automotive sectors, particularly affecting boehmite used in EV batteries. Sales are expected to decline by 1-2% year over year.

Preliminary Q2 figures show a 4.6% drop in group sales to €51.8 million. Specialty Alumina and Functional Fillers both experienced declines. However, demand for aluminum hydroxide remains robust, with projection for continued growth.

Nabaltec maintains a stable EBIT margin of 7-9%, with energy prices favorably affecting material costs. Despite current challenges, the company sees long-term growth potential driven by increasing demand for its core products and expects an improvement from 2026.