Q4 2024 Nkt A/S Earnings Call Transcript
Key Points
- NKT AS (STU:NKT) achieved a 26% organic growth in 2024, marking the ninth consecutive quarter of double-digit growth in both revenue and EBITDA.
- The company reported a record-high operational EBITDA of EUR 344 million, up from EUR 255 million in 2023.
- NKT AS generated a satisfying level of free cash flow amounting to EUR 400 million for the year.
- The acquisition of the Portuguese power cable manufacturer Solidal has been successfully integrated, contributing positively to revenue.
- NKT AS made significant progress on sustainability, reducing Scope 1 and Scope 2 emissions by 68% from the 2019 baseline.
- Organic growth in the applications business line was slightly negative due to continued weakness in the construction-exposed low voltage segment.
- The margin for the solutions business line slightly declined due to a different product mix and increased costs related to new factory construction.
- The company anticipates limited growth in solutions for 2025 due to unchanged production and installation capacity.
- NKT AS expects a step-up in CapEx for 2025, which could lead to a negative free cash flow for the year.
- The company faces challenges in achieving its sustainability targets, particularly due to emissions from installation vessels and power losses from installed cables.
At this time, I would like to welcome everyone to NKT Cable's Group Annual Report 2024 conventional. Today's call is being recorded. (Operator Instruction)
I would now like to introduce Claes Westerlind the CEO, and I'm also joined by our CFO, Line Fandrup, you may now begin.
/- -
Good morning, everyone. Welcome to this conference call following this morning's release of our annual report for 2024. I'm Claes Westerlind, the CEO, and I'm joined by our CFO Line Fandrup. As usual, I will cover the overall development and business lines, and Line will walk you through the financial performance for the 4th quarter and 2024. Please turn to slide number 3.
Before we begin, please note that this presentation may contain forward-looking statements, and I therefore ask you to pay close attention to this disclaimer. Now let's move on to our key messages for the year on slide 4.
2024 was a pivotal year for
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
