NKT (NKT) Q1 2025 earnings summary

Executive summary

• Achieved 11% organic revenue growth and operational EBITDA of EUR 81 million in Q1 2025, with strong execution across all business lines and high-voltage projects.

• High-voltage order backlog remained at EUR 10.7 billion, providing strong visibility for future years.

• Completed capacity expansions in Sweden and Czech Republic, with Denmark expected in 2026; two of three medium-voltage expansions in Applications completed.

• Secured an eight-year low-carbon aluminium supply agreement with Hydro, securing supply until 2033 and reinforcing sustainability leadership.

• Integration of SolidAl progressing, targeting EUR 7 million synergies by end-2026.

Financial highlights

• Q1 2025 revenue at standard metal prices reached EUR 630 million, up from EUR 534 million in Q1 2024, with 11% organic growth.

• Operational EBITDA increased to EUR 81 million (Q1 2024: EUR 75 million); margin at 12.9%, down from 14.1% year-over-year.

• EBIT was EUR 51 million (Q1 2024: EUR 53 million); net result improved to EUR 57 million (Q1 2024: EUR 48 million).

• Free cash flow was negative EUR -308 million, mainly due to working capital changes and high CapEx.

• Net interest-bearing debt at EUR -953 million; solvency ratio 40%.

Outlook and guidance

• 2025 outlook maintained: revenue at standard metal prices expected between EUR 2.37–2.52 billion, operational EBITDA between EUR 330–380 million.

• Assumes stable execution, market conditions, and normalized offshore repair activity.

• Medium-term ambitions for 2028: >40% organic revenue growth from 2021, operational EBITDA >EUR 700 million, ROCE/ROSI ≥20%.