Original-Research: INDUS Holding AG (von NuWays AG): HOLD

Classification of NuWays AG to INDUS Holding AG

Company Name:	INDUS Holding AG
ISIN:	DE0006200108
Reason for the research:	Update
Recommendation:	HOLD
Target price:	EUR 41
Target price on sight of:	12 months
Last rating change:
Analyst:	Sarah Hellemann

Q3e 26: Tungsten tailwind to persist, M&A the next catalyst

INDUS will report its Q3 figures on November 12th. These should reflect another strong quarter driven by the tungsten special situation positively impacting BETEK. Here is what to expect:

Total sales in Q3 to grow 20.2% yoy to € 526m (eNuW). Growth should again be mainly driven by Materials Solutions, supported by continued effects of the tungsten special situation. Further growth acceleration is seen to come from Infrastructure, carried by strong order intake in H1 and an improving environment.

Adj. EBITA is seen to rise by 49.5% yoy in Q3 to € 72m (eNuW), mainly driven by a strong contribution from portfolio company BETEK in Materials Solutions and to be supported by improved capacity utilization in Engineering. The adj. EBITA margin is expected to rise by 3pp yoy to 13.7%.

Materials Solutions should remain the key driver. We expect to see 44% yoy sales growth to € 198m (eNuW), mainly driven by pricing while the adj. EBITA margin should rise 5pp yoy to 17% (eNuW), leading to an adj. EBITA contribution of € 33.6m, doubling yoy.

Infrastructure to deliver strong growth in Q3. With the underlying environment for construction improving, in particular in Germany (Trading Economics) and order intake up 23.3% yoy in H1, segment sales are seen to rise by 9.5% yoy to € 177m (eNuW). The adj. EBITA margin is to rise by 0.1pp yoy to 13.9% and the segment is to contribute € 24.6m (eNuW) in adj. EBITA, up 10.2% yoy.

Engineering to show margin improvements. We expect to see 9.1% yoy sales growth to € 151m (eNuW), driven partially by organic growth reflecting a mixed, but improved environment (VDMA) and by some € 7.8m (eNuW) inorganic growth from the acquisitions of PRO VIDEO and AMIRA. This compares to a weak Q3 25 base impacted by end market weakness in mechanical engineering concerning plant equipment demand. The adj. EBITA margin should improve by 0.8pp yoy to 9.8% (eNuW) with higher capacity utilization and higher margin contributions from the acquisitions made. This is seen to result in an adj. EBITA of € 14.8m (eNuW).

M&A acceleration in Q4 26e in line with expectations. In October 26, INDUS sold minor portfolio company MEWESTA in Materials Solutions (c. € 5m annual revenue) as part of its active portfolio management. This was followed by the add-on acquisition of BNB (70% stake, c. € 7m annual revenue) to portfolio company BETOMAX and INDUS's concrete technology field. With two months remaining and further deals in pipeline confirmed in the CEO’s recent interview, one additional acquisition in Q4 remains possible.

Adjusting our forecast. To reflect the divestment and acquisition made, we adjust our estimates. While we expect no material impact on FY26e, we slightly raise our sales and adj. EBITA estimates from FY27e. For FY26e, we now project € 2.03bn in sales and € 247m in adj. EBITA pointing to INDUS reaching the mid of its FY26e sales guidance of € 1.9-2.1bn and the upper half of its adj. EBITA guidance of € 220-260m. Maintaining HOLD with an unchanged PT of € 41, based on FCFY27e.

You can download the research here: indus-holding-ag-2026-10-29-previewreview-en-96a88
For additional information visit our website: https://www.nuways-ag.com/research

Contact for questions:
NuWays AG - Equity Research
Web: www.nuways-ag.com
Email: research@nuways-ag.com
LinkedIn: https://www.linkedin.com/company/nuwaysag
Adresse: Mittelweg 16-17, 20148 Hamburg, Germany
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