NKT lifts 2025 outlook after posting record Q2 operational EBITDA; stock up 9%

Published 15/08/2025, 08:26

Investing.com -- NKT A/S (CSE:NKT) shares jumped 9% on Friday after the Danish cable maker on Thursday posted record operational earnings in the second quarter and raised its full-year forecast.

Revenue in the April-to-June period increased to €945 million from €802 million a year earlier. 

At standard metal prices, revenue rose to €723 million from €605 million, equal to 13% organic growth, with all three business lines contributing. 

Operational EBITDA reached a record €105 million, up from €86 million, while EBIT rose to €71 million from €61 million. The operational EBITDA margin edged up to 14.5% from 14.2%.

The net result from continuing operations fell to €54 million from €75 million, mainly due to weaker financial items following currency effects. 

Free cash flow was negative at €175 million, compared with €398 million in the prior-year quarter, as higher investments and milestone payments weighed. 

Net interest-bearing debt improved to negative €757 million from €1.28 billion, while the solvency ratio remained at 40%.

By business line, Solutions reported revenue of €450 million at standard metal prices, up from €379 million, with 18% organic growth. 

Operational EBITDA was €66 million, nearly unchanged from €67 million. Applications revenue increased to €234 million from €175 million, supported by medium-voltage capacity expansion and the SolidAl acquisition, with operational EBITDA up to €31 million from €21 million. 

Service & Accessories revenue rose to €70 million from €64 million, while operational EBITDA more than doubled to €14 million from €5 million, lifting the margin to 20.2% from 7.1%.

The high-voltage order backlog stood at €10.1 billion at the end of June, down from €10.7 billion in March. 

Excluded from the backlog are two capacity reservation agreements with SSEN Transmission and five projects with TenneT worth more than €3.5 billion.

NKT now expects 2025 revenue at standard metal prices of €2.65-2.75 billion, up from €2.37-2.52 billion previously. 

Operational EBITDA is forecast at €360-390 million, compared with earlier guidance of €330-380 million.

NKT signed a supply deal with Hydro for low-carbon aluminum through 2033 and published its first environmental product declarations for cable accessories. 

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