Nynomic AG Faces Challenges Amid Restructuring and Weak Demand

Nynomic AG reported a weak Q2 with revenue declining 13% year-on-year to €21.5 million. The dip is attributed to geopolitical uncertainties and new trade restrictions impacting demand across various sectors. Consequently, Q2 EBIT was at € -1.1 million, a notable decline from €2.6 million in the previous year, largely due to restructuring expenses under the NyFIT2025 program.

The company's FY25 forecast has been adjusted, reducing revenue expectations to €100-105 million and EBIT to €2.0-4.0 million. Despite the current slowdown, Nynomic AG anticipates improvement in H2, with Q4 predicted as the strongest. The NyFIT2025 program aims for annual cost savings of €5-6 million from 2026 by reducing workforce and optimizing processes.

NuWays AG has lowered Nynomic AG's price target to €24.5 but maintains a BUY recommendation, suggesting optimism for mid-term prospects once demand normalizes.