NKT (NKT) Q4 2024 earnings summary

Executive summary

• Achieved 26% organic growth in 2024, with record operational EBITDA of €344 million, driven by strong execution and increased capacity in Solutions.

• Completed strategic transformation to a pure-play power cable solutions provider after divesting NKT Photonics and acquiring Solidal/SolidAl.

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

• Ended the year with a high-voltage order backlog of €10.6 billion, providing strong earnings visibility through the decade.

• Free cash flow for 2024 reached €400 million, supported by EBITDA and working capital improvements.

Financial highlights

• Full-year revenue at €3.252 billion for 2024, with Q4 revenue at €963 million.

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

• Net earnings doubled to €236 million; full-year net result was €337 million, including gain from Photonics divestment.

• Net interest-bearing debt decreased by €144 million in Q4, with liquidity reserves at €1.718 billion.

• ROSI improved to 31% for 2024, up from 15% in 2023; ROCE increased to 35% in Q4 2024.

Outlook and guidance

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

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

• Applications and Services expected to contribute positively, with Solidal/SolidAl acquisition providing full-year effect.

• CapEx to increase in 2025, with €2 billion planned through 2028, front-loaded in the near term.

• Medium-term ambition: organic revenue CAGR >14% (2021–2028), operational EBITDA >€700 million, and ROCE >20% by 2028.