NKT (NKT) Q4 2024 earnings summary

Executive summary

• Achieved 26% organic growth and record operational EBITDA of €344 million in 2024, with all business lines contributing and net earnings doubling to €236 million year-over-year.

• Completed the divestment of NKT Photonics and acquisition of Solidal (SolidAl), finalizing transformation into a pure-play power cable Solutions provider.

• Maintained strong sustainability progress, reducing Scope 1 and 2 emissions by 68% since 2019, with ongoing challenges in emissions and safety.

• High-voltage order backlog of €10.6 billion provides strong earnings visibility through the decade.

Financial highlights

• Full-year revenue reached €3.25 billion, with Q4 revenue at €963 million, reflecting 26% and 23% organic growth, respectively.

• Operational EBITDA for 2024 was €344 million (13.8% margin), up from €255 million (13.2%) in 2023.

• Free cash flow for 2024 was €400 million, with net cash position at €1.3 billion and liquidity reserves at €1.72 billion by year-end.

• Net result for the year was €236 million from continuing operations, benefiting from the Photonics divestment gain.

• Net interest-bearing debt decreased by €144 million in Q4.

Outlook and guidance

• 2025 revenue expected at €2.37–2.52 billion and operational EBITDA between €330–380 million.

• Solutions segment to see limited or slightly negative organic growth due to capacity constraints and lower subcontracted revenue.

• CapEx to be front-loaded, with 2025 as the peak investment year in the current program.

• Medium-term ambition for 2028: organic revenue CAGR >14%, operational EBITDA >€700 million, and ROCE >20%.