NKT (NKT) Q2 2025 earnings summary

Executive summary

• Achieved 13% organic revenue growth and record operational EBITDA of EUR 105 million in Q2 2025, with all business lines contributing positively and capacity expansions progressing as planned.

• Updated 2025 outlook: revenue expected at EUR 2.65–2.75 billion and operational EBITDA at EUR 360–390 million, reflecting robust demand and successful integration of recent acquisitions.

• Major capacity expansion projects in Karlskrona, Cologne, Asnæs, and Esposende are on track, with Karlskrona recognized as the first EU Net-Zero Industry Act project.

• High-voltage order backlog at EUR 10.1 billion, with significant booking commitments expected to convert over coming years.

• Integration and rebranding of SolidAl progressing, with expected synergies of EUR 7 million by end-2026.

Financial highlights

• Q2 2025 revenue: EUR 723 million (standard metal prices), up from EUR 605 million in Q2 2024, representing 13% organic growth.

• Operational EBITDA: EUR 105 million, up 22% year-over-year, with margin improved to 14.5% from 14.2%.

• Net result from continuing operations: EUR 54 million, down from EUR 75 million in Q2 2024, which included a one-off gain.

• Free cash flow: -EUR 175 million, mainly due to high investment activity and working capital outflow.

• ROCE stable at 30% at end-Q2 2025.

Outlook and guidance

• 2025 revenue guidance raised to EUR 2.65–2.75 billion (previously EUR 2.37–2.52 billion); operational EBITDA guidance increased to EUR 360–390 million (previously EUR 330–380 million).

• Guidance assumes stable execution, market conditions, and supply chain, with normalised offshore repair activity.

• Service & Accessories expected to contribute more than initially forecast; Applications to remain positive.

• 2028 ambitions reaffirmed: >14% organic revenue CAGR (2021–2028), operational EBITDA >EUR 700 million, ROSI ≥20%.