NKT A/S

Latest Results (08.06.2026):

NKT A/S — Q4 2025: NKT reported Q4 2025 and full-year 2025 results showing continued execution on its expansion plan and a strong operational performance. Q4 revenue was EUR643m, operational EBITDA EUR85m (13.2% margin). For full-year 2025 NKT delivered revenue of EUR2.722bn, operational EBITDA of EUR390m (record-high), 6% organic growth and a high-voltage order backlog of EUR10.2bn. Management confirmed elevated investment activity and provided 2026 guidance reflecting near‑term margin dilution from ramp‑ups.

Headline Q4 / FY 2025 numbers

Q4 2025 revenue: EUR643m (−6% organic vs Q4 2024). Q4 operational EBITDA: EUR85m (13.2% margin). FY 2025 revenue: EUR2.722bn; FY 2025 operational EBITDA: EUR390m (upper end of guidance). Full‑year organic growth: 6%.

Business-line Q4 detail

Solutions (high voltage): Q4 revenue EUR409m (vs EUR469m in Q4 2024) driven by ramp‑down on Champlain Hudson; Q4 operational EBITDA EUR61m, margin 15.2% (up ~1pp year‑on‑year excluding Champlain effect). Applications (medium voltage / distribution): Q4 revenue EUR197m (+9% organic), EBITDA EUR18m, margin 9.1%; SolidAl integration completed, EUR7m synergies expected in 2026. Service & Accessories: Q4 revenue EUR79m (+31% organic), EBITDA EUR10m, margin 12.5%.

Order backlog & market

High‑voltage order backlog at year‑end 2025: EUR10.2bn (≈95% with European TSOs; >55% interconnectors, ~40% offshore wind). Management converted ~EUR2bn of SSEN booking commitments to firm orders in January 2026 and remains preferred supplier on EGL3 — providing multi‑year visibility. Company reiterates belief in >EUR10bn p.a. addressable awards on average for 2024–2030.

Cash flow, balance sheet & working capital

Q4 2025 free cash flow: EUR341m (driven by EUR85m EBITDA and EUR527m working capital inflow). FY 2025 free cash flow: negative EUR244m (investments ~EUR743m in 2025). Net cash position at year‑end ~EUR1.2bn. Reported negative working capital position: EUR1.5bn (improved vs Q3 driven by prepayments and timing).

Investments & capex

2025 investments: EUR743m. Company confirms accumulated CapEx ~EUR2bn for 2025–2028. Key projects progressing to plan: Karlskrona expansions (machinery, harbor), Cologne capacity expansion, second cable‑lay vessel NKT Eleonora (on track for operation from 2027), Assens medium‑voltage capacity to ramp in H1 2026; Portugal capacity expected end‑2026.

Profitability drivers & non‑recurring items

Q4 tax benefit of EUR37m due to capitalization of German tax asset; FY tax cost EUR9m (effective tax rate 6%). Depreciation/amortization rose in 2025 (reported EUR37m for FY 2025 in the call) and management expects material step‑ups as new assets come online (CFO guided ~EUR150m in 2026 and approaching ~EUR200m by 2028 as capacity is commissioned).

Guidance and near‑term outlook (2026)

2026 guidance (standard metal prices): revenue EUR2.63–2.78bn; operational EBITDA EUR360–410m. Guidance assumes slightly lower Solutions revenue (mid‑single‑digit organic decline vs 2025) due to lower subcontracted revenue and normalization of variation orders, a temporary margin dilution from elevated ramp‑up costs (~2pp drag in 2026), Applications growth aided by Denmark and Portugal capacity (up to ~10% uplift in Applications), and continued elevated but lower capex than 2025. Management expects negative free cash flow in 2026.

Strategic targets and KPIs

NKT launched "Charging Forward" and reiterated medium‑term 2030 ambitions: >7% organic CAGR (2024–2030), operational EBITDA >EUR900m and ROCE ≥22% by 2030. ROCE at year‑end 2025 was ~24% (down from 27% in Q3), and headcount averaged >6,300 in Q4 2025.

Management commentary / risks

Management emphasizes disciplined execution, focus on risk and profitability when booking large projects, and sensitivity to timing/permits for large awards. Key near‑term risks: project execution timing, variation order and subcontracting levels, offshore repair job variability for Services, and continued access to labour/materials. Company remains selective on further capacity additions beyond current programs.