TKH stock rises on strong FY25E earnings outlook

Published 13/05/2025, 09:56
TKH stock rises on strong FY25E earnings outlook

Investing.com -- Shares of TKH Group ( AMS (VIE:AMS2):TWEKA) climbed 1.5% following the company’s optimistic forecast for FY25E, which anticipates significant organic growth in turnover and EBITA, particularly due to the expansion of its new sub-sea inter-array cable facility in Eemshaven. The company projects revenues to soar to €170m-180m from €40m in FY24, with a high-teens EBITA margin.

The positive market response is also buoyed by expected growth in the Smart Vision sector, driven by increased order intake and market share gains, alongside cost savings. However, this is somewhat tempered by a forecast of lower growth in Smart Manufacturing after a strong performance in 2024.

In addition to these projections, TKH Group is preparing for a strategic update on September 25, which will focus on Automation and Electrification trends. This strategy might lead to divestments of around 10-20% of the company’s revenues, including its fibre optic cable activities, which represented 11% of FY24 revenues. The company suggests that excess cash from these potential divestments could be returned to shareholders, provided the leverage ratio remains below 2.0x EBITDA.

Looking ahead, TKH Group has confirmed its FY25E guidance for organic growth in turnover and EBITA, which aligns with a consensus estimate of a 20% increase to €240m, according to FactSet data. This confirmation reinforces investor confidence in the company’s financial trajectory.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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