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Investing.com -- TKH Group NV on Thursday announced plans to divest its Smart Connectivity electrification cable activities within the next 12-18 months as part of its new Capitalise & Execute 2028 strategy.
The Dutch technology company is accelerating its transition toward becoming a leading asset-light Automation company, focusing on its Smart Vision and Smart Manufacturing tire building activities, which represent approximately 60% of the company’s turnover.
TKH Group has set new financial targets for its Automation segment, including organic growth of 5%-7% per annum, down from the previous target of more than 7%. The company is targeting a fiscal year 2028 EBITA margin of 17%-19% for this segment.
For the Electrification business that will be divested, TKH maintained its organic growth target of more than 7%, but lowered the EBITA margin target to 12%-15% from the previous 15%. The Electrification segment reported a margin of just 1.0% in the first half of 2025.
In its first-half 2025 results, TKH’s Smart Vision division, which accounts for 35% of fiscal year 2024 EBITA, saw its EBITA increase 41% to €42.8 million.
This growth was driven by organic revenue growth of 7.5%, with machine vision benefiting from factory automation in consumer electronics and battery markets. The division’s EBITA margin improved by 380 basis points to 16.9%, while its order book increased 4% to €144.8 million.
The Smart Manufacturing division, representing 52% of EBITA, experienced a 19% decrease in EBITA to €45.5 million. This decline was attributed to an organic revenue drop of 9.2%, due to a lower order book and strong comparative figures. The division’s EBITA margin decreased by 50 basis points to 17.4%, and its order book fell 13% to €438.6 million.
The Smart Connectivity division, which accounts for 14% of EBITA, saw its EBITA plummet 83% to €3.4 million.
Despite organic revenue growth of 6.5%, the division’s EBITA margin dropped 520 basis points to 1.0%, due to low output and yields at its new inter-array cable plant in Eemshaven, along with continued pricing pressure in fiber optic cables.
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