Danish cable manufacturer NKT has raised its full-year earnings guidance following its strongest quarterly operational result on record, citing robust demand across its business lines and benefits from recent acquisitions.
The company now forecasts operational earnings before interest, taxes, depreciation and amortisation (EBITDA) of €360 million to €390 million for 2025, up from a previous estimate of €330 million to €380 million. Revenue is expected to range between €2.65 billion and €2.75 billion, compared with the earlier forecast of €2.37 billion to €2.52 billion.
The upward revision reflects sustained high activity in the Solutions segment, improved performance in Applications and Service & Accessories, and contributions from the recent acquisition of Portuguese cable producer SolidAl.
In the second quarter, operational EBITDA increased to €105 million from €86 million in the same period last year. The EBITDA margin rose to 14.5% from 14.2%, while revenue based on standard metal prices grew 13% year-on-year to €723 million.
Segment-wise, EBITDA for Applications rose to €31 million from €21 million, supported by expanded medium-voltage production capacity. Service & Accessories EBITDA nearly tripled to €14 million, up from €5 million, driven by higher accessories sales. Solutions EBITDA declined slightly to €66 million from €67 million.
The high-voltage order backlog stood at €10.1 billion (€8.9 billion at standard metal prices) at the end of June, down from €10.7 billion at the end of the first quarter.
Free cash flow was negative €175 million in the quarter, impacted by significant investments, including the expansion of NKT’s Karlskrona site and construction of the cable-laying vessel NKT Eleonora, both expected to be operational from 2027.
NKT also announced that Chief Financial Officer Line Andrea Fandrup will step down by April 2026 after five years with the company. The board has initiated the search for her successor.
“Line has been a central member of our Group Leadership Team for the past five years contributing to the positive development of the company,” said President and CEO Claes Westerlind. “I look forward to continuing the collaboration over the coming months.”
Chair Jens Due Olsen added that Fandrup held a “central position in executing the group’s growth strategy and transformation into a pure-play power cable solutions provider with a strong financial performance.”
