#Denmark #Copenhagen #NKT A/S #Claes Westerlind #Charging Forward

NKT A/S Annual Report 2025 Overview

NKT A/S, a prominent player in the power cable industry, demonstrated its resilience and dynamic growth in the year 2025. Under the leadership of President and CEO Claes Westerlind, the company showcased exemplary performance driven by disciplined execution of its strategic initiatives. The results reveal a strong commitment to fostering sustainable growth, a focus on innovation, and a continuous push toward enhancing operational efficiencies.

Financial Outcomes

The company's financial performance for 2025 is nothing short of impressive. NKT recorded revenues amounting to EUR 2.72 billion, marking a 6% increase from 2024. This growth was notable across all three business lines, underscoring NKT's robust market presence. The operational EBITDA reached a historical high of EUR 390 million for the year, significantly exceeding the previous year’s figures by EUR 46 million.

Despite a drop in revenue during the fourth quarter, NKT maintained a positive trajectory overall, with an operational EBITDA margin slightly rising to 14.3%. This reflects the company’s efficient management of resources and focus on high-margin projects.

Segment Performance

Solutions

In the Solutions segment, NKT achieved a revenue boost of EUR 108 million, equivalent to a 7% organic growth. This growth can be attributed to a solid backlog of high-voltage projects and successful execution of previously secured contracts. NKT’s capability in managing complex assignments enabled it to increase its operational EBITDA in this sector to EUR 258 million.

Applications

The Applications division, which incorporates the newly acquired NKT Esposende, enjoyed a revenue increase of EUR 153 million, showing an impressive organic growth rate of 11%. This surge was driven largely by the rising demand in power distribution segments, confirming NKT's strategic direction.

Service Accessories

The Service Accessories segment also contributed positively, with its revenue climbing by EUR 60 million. The 22% organic growth in this business line is a direct result of heightened market activity and efficient operational performance, which propelled the operational EBITDA to EUR 60 million, showcasing an impressive margin of 19.1%.

Strategic Direction: Charging Forward

In 2025, NKT launched its new corporate strategy, ‘Charging Forward,’ which aims to establish ambitious financial goals by 2030. This strategy is aligned with the increasing importance of sustainability and climate action, where NKT aims to bolster its role in facilitating the energy transition by enabling clean electricity infrastructure.

The company is committed to achieving net zero across its entire value chain by 2050, symbolizing its dedication to combating climate change and contributing positively to societal transformations. By making substantial investments in capacity expansion and technological advancements, NKT is poised for exciting future growth while focusing on its environmental responsibilities.

Looking Ahead

For 2026, NKT projects revenues to remain steady around EUR 2.63 to 2.78 billion, alongside an expected operational EBITDA in the range of EUR 360 to 410 million. This optimistic outlook hinges on successfully executing high-voltage investments and navigating through various market conditions. The financial expectation is bolstered by NKT’s established order backlog worth EUR 10.2 billion, providing a solid foundation for continued performance.

Conclusion

As NKT A/S continues to thrive within the power cable sector, its robust financial indicators and strategic initiatives underline its position as an industry leader. The company’s unwavering focus on growth and sustainability not only reflects its commitment to shareholders but also its responsibility towards a cleaner, greener future for society.

With the strategic plan advancing and strong market demand, NKT is well-prepared for the upcoming challenges and opportunities in the evolving energy landscape.