NKT (NKT) Q2 2026 earnings summary

Executive summary

• Q2 2026 featured solid operational and financial execution, highlighted by the Champlain Hudson Power Express project reaching commercial operation and significant capacity expansions, especially in Denmark.

• Organic revenue growth was -9%, mainly due to the Champlain Hudson Power Express project reaching commercial operation, but operational EBITDA remained stable at EUR 104 million with a margin improvement to 15.7%.

• Strategic priorities under the Charging Forward strategy advanced, with high activity across all business lines and robust Transmission order backlog of EUR 13.0 billion.

• Capacity expansion projects progressed as planned, with medium-voltage expansion in Denmark completed and high-voltage expansions in Portugal, Karlskrona, and Cologne ongoing.

• Maintained high investment in capacity and capabilities, supporting future growth.

Financial highlights

• Q2 2026 revenue at standard metal prices declined to EUR 657 million from EUR 723 million, reflecting -9% organic growth; revenue at market prices was EUR 947 million, nearly flat year-over-year.

• Operational EBITDA was EUR 104 million, stable from Q2 2025, with margin improved to 15.7% from 14.5%.

• EBIT was EUR 69 million (Q2 2025: EUR 71 million); net result was EUR 52 million (Q2 2025: EUR 54 million).

• Free cash flow was negative at EUR -249 million, mainly due to high investments and working capital outflows.

• Working capital improved to EUR -1,241 million at end-Q2 2026 from EUR -1,524 million at end-Q1 2026.

Outlook and guidance

• 2026 revenue at standard metal prices expected at EUR 2.65–2.75 billion (previously EUR 2.63–2.78 billion); operational EBITDA guidance raised to EUR 400–430 million (previously EUR 360–410 million).

• Transmission revenue expected to decline mid-single digits year-over-year; grid solutions and accessories to benefit from high activity; distribution to see up to 10% growth as new capacity comes online.

• Margin dilution of up to two percentage points expected from ramp-up costs.

• Assumes stable market conditions, satisfactory execution of investments, and no significant supply chain disruptions.