Nabaltec AG: Growth and Resilience Amid Energy Challenges

Nabaltec AG's recent presentation at NuWays AG's Paris conference highlighted the company's strong growth trajectory, product demand, and market positioning. Q2 showed a 6.9% sales increase, and a robust €52.2 million order backlog suggests continued growth into H2. Key drivers are aluminium hydroxides, used increasingly in data-center cables, and viscosity optimized hydrates, vital for lithium-ion battery performance, with sales up by 36% year-on-year.

Boehmite sales, crucial for electric vehicle batteries, are recovering, with an expected 10% growth in FY26. Despite rising energy costs, stabilized gas prices should help manage margins, although €2 million expenses for waste incineration maintenance pose a challenge. Nonetheless, Nabaltec remains appealing with its strategic position in environmentally friendly flame retardants, underpinned by regulatory demands and potential revenue expansion.

Nabaltec's solid financials suggest minimal downside risk. Shares remain undervalued, supporting the continued BUY rating with a €16 target price, driven by promising growth in data centers and battery technology sectors.