Nucera drops 2024/25 alkaline electrolysis outlook amid uncertainties

German electrolyser maker Thyssenkrupp Nucera AG & Co KgaA (ETR:NCH2) on Friday confirmed its sales and earnings forecast for its current financial year but withdrew expectations for the following year.

The company said it is not maintaining the sales and earnings guidance for the 2024/2025 financial year in the area of alkaline water electrolysis (AWE) due to uncertainties in the green hydrogen market.

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"Unfortunately, the known braking factors, such as regulatory and funding uncertainties, have not lost any of their negative force. Progress on the regulatory side is recognisable, but at the same time not yet sufficient to accelerate investment momentum again. The result is further delays to new projects on the customer side,” explained chief executive Werner Ponikwar.

According to the company, the market uncertainties make a reliable outlook for the 2024/2025 financial year impossible at the current point. Thyssenkrupp Nucera said it will publish its 2024/2025 outlook as planned with the publication of the annual results for the current financial year.

The company, however, expects that the delays on the customer side will not affect its long-term development prospects.

A results presentation in May 2024, projected AWE sales of EUR 700 million (USD 760m) to EUR 800 million.

After preliminary figures for its third quarter, the company confirmed its forecast for its current financial year ending in September, with sales still expected in the range of EUR 820 million to EUR 900 million and earnings before interest and tax (EBIT) in the negative mid-double-digit million euro range. The sales outlook for the AWE business is kept at between EUR 500 million and EUR 550 million.

The company said its preliminary third-quarter figures are above market expectations. Sales grew 26% to EUR 236 million, while EBIT decreased by EUR 6 million year-on-year to EUR 1 million. The results for the quarter will be published on August 13.

(EUR 1 = USD 1.086)