On the same day that NKT presented another strong quarterly report, the cable manufacturer has also outlined a new strategy to ensure continued growth in the company.
The new group strategy 'Charging Forward' updates the organization and sets new goals towards 2030. The strategy is to ensure organic revenue growth (CAGR) of more than 7 percent from 2024 to 2030 and an operating EBITDA of more than 900 million euros. This is stated by NKT in a press release.
- It is about execution, about being strong enough to scale quickly, while maintaining our technological differentiation, sharpening competitiveness, leading in sustainability and putting people at the center, says Claes Westerlind, CEO of NKT.
The strategy is built on three tracks: Execute (delivering on high-voltage backlog and capacity expansions), Excel (better utilization of existing assets and strengthening earnings capacity) and Evolve (continuous innovation and selective growth).
NKT also confirms its 2028 ambitions and launches new financial targets towards 2030. The company is aiming for organic revenue growth (CAGR) of more than 7 percent from 2024 to 2030, an operating EBITDA of more than 900 million. euros and a return on invested capital (RoCE) of more than 22 percent. The objectives are based, among other things, on continued high demand driven by electrification and the energy transition in Europe, as well as stable development in supply chains, raw material prices and project execution.
NKT maintains its expectation of total investments of around 2 billion euros in the period 2025-2028. After 2028, the company currently has no major capacity projects planned, and maintenance capex is expected to be around 4 percent of revenue measured in standard metal prices. NKT aims for a leverage of up to 0.0x.
Name and organizational changes
In continuation of the strategy, the focus and names of the business areas are changing: Solutions will become Transmission, Service & Accessories will become Grid Solutions & Accessories (reported together), and Applications will become Distribution.
In addition, several management changes will be implemented. Darren Fennell is appointed Executive Vice President and Head of Transmission, while Raphael Görner will join as EVP and Head of Grid Solutions no later than April 1, 2026. Until then, the position will be temporarily held by COO Will Hendrikx. Denis Schuler will continue as Head of Accessories, and Carlos Fernandez will remain Head of Distribution. Lukas Sidler and Axel Barnekow Widmark will step down from the Group Management Board at the end of 2025 and no later than the first quarter of 2026, respectively.
With Charging Forward, NKT will capitalize on the increasing demand for cable solutions for the green transition and move from growth through expansion to growth through scaling and innovation. The strategy is intended to strengthen the company's ability to deliver higher revenue and earnings - while ensuring an attractive return on invested capital.
The changes to the business areas will enter into force on January 1, 2026, and the first external reporting under the new structure is expected in May 2026 together with the Q1 2026 financial statements.
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