Q4 2025 Nkt A/S Earnings Call Transcript
Key Points
- NKT AS (NRKBF) reported record-high standard metal price revenue of EUR2.7 billion and operational EBITDA of EUR390 million, both at the upper end of the latest guided ranges.
- The company maintained a high-voltage order backlog of EUR10.2 billion at year-end, providing visibility and predictability for future operations.
- NKT AS (NRKBF) successfully launched its new corporate strategy, Charging Forward, aimed at reinforcing its position as a leading power cable solutions provider.
- The company made significant progress on its capacity expansion investments, with projects in Karlskrona, Cologne, and Portugal on track to become operational by 2027.
- The Service and Accessories business line experienced over 30% organic growth in Q4, driven by high activity levels and demand for high- and medium-voltage accessories.
- Revenue in Q4 2025 declined by 8% organically, primarily due to the ramp-down of the Champlain Hudson Power Express project in the US.
- The operational EBITDA margin, although improved, was temporarily diluted by around 1 percentage point due to higher costs associated with capacity ramp-ups.
- The Construction Exposed segment within Applications remained subdued, with revenue below the level from the previous year.
- Free cash flow for the full year was negative EUR244 million, attributed to significant investments in increased capacity.
- The outlook for 2026 anticipates a slightly lower revenue level in Solutions, with a mid-single-digit percentage organic decline expected.
Welcome to NKT's annual report 2025. (Operator Instructions) This call is being recorded. I will now hand it over to your speakers, President and CEO, Claes Westerlind, and CFO, Line Andrea Fandrup. Speakers, please begin.
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Good morning and welcome to NKT's conference call following the release of our annual report for 2025. I'm Claes Westerlind, the CEO, and with me today is our CFO, Line Fandrup. As always, I will take you through the strategic, operational, and market developments that shaped 2025 before handing over to Line for the financial review. We will then conclude with the outlook and open the line for questions.
It's worth noting that we, from January 3 this year, have changed the scopes and names of our business lines. Solutions has become Transmission; Applications has become Distribution; and Service and Accessories, Grid Solutions and Accessories. Throughout this call, we will keep to the
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