The success story of NKT continues. The first quarter once again saw growth. The cable manufacturer realized revenue of 630 million euros in the quarter at standard metal prices, an increase of 96 million euros compared to the first quarter of 2024, which corresponds to organic growth of 11 percent.
The growth was driven by the Solutions and Applications business areas, which both experienced significant growth, while Service & Accessories declined slightly. The growth in Solutions is mainly due to last year's acquisition of SolidAl, while the decline in Service & Accessories is due to the fact that last year it had a number of orders for an old offshore service agreement, NKT said in a statement.
Operating EBITDA increased to 81 million euros in the first quarter of 2025 from 75 million euros in the same period last year. The increase was driven by higher revenue. However, the operational EBITDA margin decreased by 1.2 percentage points to 12.9 percent. According to NKT, this is mainly due to natural fluctuations in the project business.
However, there is progress on the bottom line, as NKT can present a profit of 57 million euros compared to 48 million euros last year. The result was achieved at the same time that NKT has made major investments.
- In Q1 2025, NKT continued the execution of high-voltage projects, and we delivered organic growth of 11% and an operational EBITDA of EUR 81m. We continued the execution of the ongoing investments across our factories, and announced the completion of the capacity expansions within medium voltage in Falun and Velke Mezirici. In addition, in April we concluded the negotiations from the first quarter and signed an agreement with Hydro for the supply of aluminum, which strengthens our European value chain and secures aluminum supply until 2033. These steps underline our focus on business excellence, supporting the energy transition and increasing value for our customers and shareholders.
Based on the quarterly financial statements, NKT maintains the previously announced expectations for the annual result, which are revenue in the range of 2.37-2.52 billion euros. Operational EBITDA is expected to be approximately 330-380 million euros. The order backlog increases slightly to EUR 10.7 billion (EUR 9.4 billion at standard metal prices) compared to EUR 10.6 billion. (EUR 9.3 billion in standard metal prices) by the end of Q4 2024.
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