NKT A/S Q1 2025 Interim Report: 11% organic growth and EBITDA of EUR 81m

Core Viewpoint - NKT A/S reported an 11% organic revenue growth in Q1 2025, with operational EBITDA reaching EUR 81 million, reflecting the company's ongoing commitment to high-voltage projects and strategic investments in production capacity [1][3]. Financial Performance - Revenue for Q1 2025 was EUR 630 million, an increase of EUR 96 million from Q1 2024, corresponding to an 11% organic growth [2][3]. - Operational EBITDA increased to EUR 81 million from EUR 75 million in Q1 2024, with an operational EBITDA margin of 12.9%, down from 14.1% in the previous year [2][4]. - The financial outlook for 2025 remains unchanged, with expected revenues between EUR 2.37 billion and EUR 2.52 billion and operational EBITDA projected at approximately EUR 330 million to EUR 380 million [2]. Business Segments - In the Solutions segment, revenue increased to EUR 388 million from EUR 321 million, with operational EBITDA of EUR 57 million [9]. - The Applications segment saw revenue rise to EUR 203 million from EUR 153 million, with operational EBITDA of EUR 18 million [9]. - The Service & Accessories segment reported revenue of EUR 70 million, slightly down from EUR 74 million, but operational EBITDA increased to EUR 13 million [9]. Order Backlog and Investments - At the end of Q1 2025, the high-voltage order backlog stood at EUR 10.7 billion, slightly up from EUR 10.6 billion at the end of Q4 2024 [5]. - The company is progressing with its high-voltage investment program, with significant developments at the Karlskrona site in Sweden, expected to enhance production capacity by 2027 [8]. Cash Flow and Debt - Free cash flow for Q1 2025 was negative at EUR -308 million, primarily due to ongoing investments and changes in working capital [7]. - NKT maintained a robust balance sheet with net interest-bearing debt of EUR -953 million at the end of Q1 2025 [7].