NKT (NKT) Q3 2024 earnings summary

Executive summary

• Achieved 25% organic revenue growth in Q3 2024, marking the eighth consecutive quarter of double-digit growth in both revenue and operational EBITDA, mainly driven by Solutions and expanded capacity from investments.

• Record-high operational EBITDA of EUR 93 million in Q3 2024, despite non-recurring integration costs from the SolidAl acquisition.

• SolidAl integration progressed as planned, strengthening presence in Southern Europe and supporting capacity expansion in medium- and high-voltage segments.

• Maintained robust balance sheet and high-voltage order backlog of EUR 11 billion at end-Q3 2024, with new long-term frame agreements in the Netherlands, Denmark, and France.

• Divestment of NKT Photonics completed in May 2024, generating a net gain of EUR 107 million and cash inflow of EUR 248 million.

Financial highlights

• Q3 2024 revenue at standard metal prices: EUR 657 million (up 25% year-over-year); Q1–Q3 revenue at EUR 1.8 billion (up 27%).

• Operational EBITDA for Q3 was EUR 93 million (margin 14.2%), and EBIT was EUR 66 million (10.1% margin).

• Net result for Q3 was EUR 57 million, more than doubling year-over-year.

• Free cash flow for Q3 was negative EUR 134 million due to working capital and investment outflows; year-to-date free cash flow was EUR 248 million.

• ROCE improved to 31% for the quarter, up from 15% last year.

Outlook and guidance

• 2024 financial outlook maintained, now expecting results at the upper end of guidance: revenue EUR 2.33–2.43 billion and operational EBITDA EUR 310–345 million.

• Assumptions include satisfactory execution of high-voltage projects, stable market conditions in Applications, and supply chain continuity.

• CapEx expected to increase further in Q4 and peak in 2025, reflecting ongoing major investment programs.