Business has been going well for a long time at cable manufacturer NKT, and the first quarter was no exception, according to the company's quarterly financial statements.
In Q1 2024, NKT's revenue thus grew (in standard metal prices) by 112 million euros to 534 million euros. This represents organic growth of 27 percent when compared to Q1 2023. The majority of the growth was driven by satisfactory execution and utilization of existing and new capacity in Solutions, NKT said in a statement.
The revenue growth has also led to an increase in operational EBITDA, which ended at 75 million euros in Q1 2024, which was an increase of 18 million euros from the same period last year. This gives a positive operational EBITDA margin of 14.1 percent.
- We have had a successful start to 2024 with continued growth in revenue and operational EBITDA, driven by satisfactory execution and high utilization of existing and new capacity. After a significant project award in the first quarter, our leading position in the high-voltage market was once again confirmed and our order book reached a new record level, says NKT's CEO Claes Westerlind.
Growing order book and new investments
In the first quarter of 2024, NKT's order book for high-voltage projects grew to a new record high of EUR 11.5 billion (EUR 10.1 billion in standard metal prices). The increase was driven by the award of two land cable projects from the German grid operator Amprion.
Based on these projects and continued positive expectations for the high-voltage market, NKT will invest approx. 100 million euros in additional capacity at its existing factory in Cologne.
However, these will not be the only investments NKT is making. To support increasing demand for medium-voltage cables and the ongoing electrification of society, NKT will also invest an additional approximately 100 million euros in expanding capacity at its medium-voltage factories in the Czech Republic, Denmark and Sweden. The investments in Solutions and Applications support NKT's medium-term financial ambitions, including achieving an RoCE of over 20 percent.
- To further strengthen our position, we have initiated new investments in Solutions and Applications, which are expected to create value for our shareholders, says Claes Westerlind.
NKT's expectations for the year remain the same, and are for revenue of approximately 2.21-2.36 billion euros (standard metal prices), while operational EBITDA is expected to end at approximately 285-335 million euros.
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