INDUS Holding AG: Q3 Report and Revised Guidance

NuWays AG has maintained a "Buy" recommendation for INDUS Holding AG, setting a target price of EUR 34. This follows INDUS's release of its preliminary Q3 figures which align with NuWays' expectations. Despite goodwill impairments totaling €6.7 million affecting EBIT, INDUS' sales reached approximately €441 million, around 4% lower year-on-year due to challenging economic conditions.

INDUS announced a revision of its full-year 2024 EBIT guidance, now projected at €115-125 million, down from an earlier forecast of €125-145 million. The revision follows non-cash impairments in the Infrastructure and Materials segments. However, the company confirmed its sales and free cash flow guidance, underlining a solid financial position.

The revised guidance suggests a conservative EBIT margin of 5.1% for Q4 2024. Despite the decrease in EBIT, the strong free cash flow forecast supports NuWays' confidence in INDUS, keeping the stock as an "Alpha Pick."