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Investing.com -- Shares of Dutch technology firm TKH Group tumbled more than 7% to a four-month low after the company’s half-year earnings came in below market forecasts.
First-half adjusted EBITA dropped 18% organically to €80.2 million ($93.1 million), around 20% under the €100.7 million consensus cited by Jefferies.
The shortfall was mainly due to weaker-than-expected performance in Smart Connectivity, impacted by low output and yields at the new inter-array cable plant in Eemshaven, thin margins on outsourced work, and ongoing pricing pressure in fibre optic cables.
Results in the other units were broadly in line with expectations. Smart Vision EBITA rose 41%, supported by a rebound in machine vision, while Smart Manufacturing EBITA fell 19% against a strong prior-year comparison.
"After a relatively limited 3% decline in 1Q25 EBITA to €40m, 2Q25 EBITA fell 26% to €40.2m, whereas consensus had anticipated a 10% recovery," Jefferies analyst David Kerstens said in a note.
TKH expects second-half EBITA to improve significantly from the first half and exceed the €108.2 million posted in the second half of 2024, citing a recovery in Smart Connectivity as production at Eemshaven ramps up.
This is likely to prompt "material mid-teens full-year 2025 (FY25) consensus EBITA downgrades," Kerstens noted.