Nabaltec AG Projects Growth for FY25 Despite Rising Costs

Nabaltec AG expects to close FY24 positively and anticipates growth for FY25. The company aims to reach the upper end of its EBIT margin guidance, having already achieved a 10.6% margin in the first nine months. Although the sales growth target is modest, the EBIT margin is projected to hit around 9.3%.

In 2025, Nabaltec is set to benefit from rising volumes and potentially higher prices, amid increasing production costs. Key drivers include demand for ATH, a flame retardant essential for data centers and construction. Furthermore, the company’s growing gap filler segment, used in EV batteries, is expected to significantly contribute to revenue.

Continued investments will not strain the balance sheet thanks to a robust operating cash flow. Despite economic challenges, Nabaltec maintains an appealing valuation and a BUY rating with a target price of €25.