Nordex SE Secures a 700 MW Wind Turbine Agreement with Verbund

Nordex SE, the German wind‑turbine specialist, has just inked a multi‑year framework contract with Austrian energy group Verbund Green Power for the supply of wind turbines with a combined capacity of 700 MW. The deal, announced on 19 January 2026 by several German and international financial news outlets, represents a substantial reinforcement of Nordex’s order book amid a market that has, until now, been marred by intense price competition and a tightening supply chain.

Strategic Significance

A 700‑MW order is not merely a number; it translates into roughly 250 to 300 turbine units, depending on the specific models chosen. For Nordex, this volume is a decisive victory over rivals such as Enercon and Vestas, who have been battling for market share in the European wind‑energy segment. The contract’s multi‑year nature also guarantees a stable cash flow over several years, a critical factor given the company’s current price‑to‑earnings ratio of 68.75, which indicates that investors are pricing in aggressive growth expectations.

Market Context

Nordex’s share price closed at EUR 32.14 on 15 January 2026, well below its 52‑week high of EUR 33.24 but still far above its 52‑week low of EUR 10.48. The company’s market capitalisation stands at EUR 7.6 billion, positioning it as a mid‑cap player within the Industrials sector and the Electrical Equipment industry on Xetra. In a market that has been largely dominated by larger conglomerates, Nordex’s ability to secure sizeable orders is a testament to its engineering prowess and production efficiency.

Implications for Investors

  • Revenue Upside: The 700‑MW order injects a significant order‑backlog, suggesting that Nordex could see a notable uptick in revenue in the next 12–24 months.
  • Cash Flow Stability: Multi‑year contracts reduce the cyclical nature of turbine sales and provide a more predictable earnings profile.
  • Valuation Pressure: With a high P/E ratio, the market will likely demand concrete evidence of profitability growth to justify the premium. This contract may serve as a catalyst, but the company must still deliver on production and delivery timelines.

Competitive Landscape

The wind‑energy industry is currently witnessing a consolidation wave, with suppliers seeking to lock in long‑term contracts to shield themselves from raw‑material price volatility and to secure their supply chains. Nordex’s agreement with Verbund aligns with this trend, but it also raises questions about the company’s ability to meet delivery commitments without compromising on quality or incurring cost overruns.

Operational Readiness

Nordex’s production facilities in Hamburg have historically faced capacity constraints. The firm’s success will hinge on its ability to ramp up manufacturing without sacrificing the high standards that have defined its turbines’ performance. Any delays could erode investor confidence, especially given the already elevated P/E ratio.

Conclusion

Nordex SE’s 700 MW turbine deal with Verbund Green Power marks a pivotal moment for a company that has struggled to translate its technical expertise into consistent market dominance. While the contract provides a substantial boost to the company’s order book and a potential pathway to revenue growth, it also amplifies scrutiny over Nordex’s operational capabilities and financial valuation. Investors will be watching closely to see whether Nordex can convert this opportunity into tangible earnings growth and, in doing so, justify its lofty market price.