Q1 2025 Nkt A/S Earnings Call Transcript
Key Points
- NKT AS (NRKBF) reported a solid start to 2025 with an organic growth of 11% and an operational EBITDA of EUR81 million.
- The company maintained a high voltage order backlog of EUR10.7 billion, providing good visibility for future years.
- NKT AS (NRKBF) completed capacity expansions in Sweden and the Czech Republic, contributing positively to revenue.
- An eight-year agreement with Hydro was signed, securing a long-term supply of low carbon aluminum, reinforcing NKT's sustainability leadership.
- Service and accessories segments more than doubled operational EBITDA, driven by high activity levels and increased demand.
- Operational EBITDA margin declined by 1.2% points to 12.9% compared to the first quarter of 2024, due to natural fluctuations and weakness in the construction segment.
- Free cash flow for the first quarter was negative at minus EUR308 million, driven by changes in working capital and high investment levels.
- The construction segment remained subdued with both prices and volumes below the first quarter of 2024.
- Increased competitive pressure in selected Central European markets impacted margins in the medium voltage segment.
- The company expects continued subdued performance in the construction segment for at least the first half of 2025.
Welcome to this NKT financial presentation for the first quarter of 2025. (Operator Instructions)
This call is being recorded. I will now turn the call over to speakers. Please begin.
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Ladies and gentlemen, good morning and welcome to today's conference call following the release of our interim report for the first quarter of 25. My name is Claes Westerlind. I'm the CEO and I'm joined today by our CFO, Line Fandrup.
As usual, I will cover the overall development and the business lines in the first part of the presentation, and afterwards Line will take a deeper look at the development of the financials for the quarter. Please turn to slide number 3.
Before we begin, I ask you to pay close attention to this disclaimer, as this presentation may contain forward-looking statements. Now let's move on to our key messages for the quarter on slide 4.
We were off to a solid start in the first quarter of this year. We continued
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