In This Article:
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Organic Growth: 26% for the full year 2024, with Q4 marking the 9th consecutive quarter of double-digit growth in both revenue and EBITDA.
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Operational EBITDA: EUR344 million for 2024, up from EUR255 million in 2023.
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Free Cash Flow: EUR400 million for 2024.
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Net Earnings: Doubled to EUR236 million for 2024.
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Revenue: EUR2.5 billion for the full year 2024, with Q4 revenue at EUR963 million.
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Operational EBITA Margin: Improved to 13% in Q4 2024.
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Solutions Revenue: EUR469 million in Q4 2024, representing 34% organic growth.
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Applications Revenue: EUR178 million in Q4 2024, with a negative 4% organic growth.
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Service and Accessories Revenue: 7% organic growth in Q4 2024.
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Net Cash Position: EUR1.3 billion at the end of 2024.
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Order Backlog: EUR10.6 billion in high voltage order backlog at the end of 2024.
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Employee Headcount: Increased by over 1,000 in 2024.
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2025 Revenue Outlook: EUR2.37 to EUR2.52 billion.
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2025 Operational EBITDA Outlook: EUR330 to EUR380 million.
Release Date: February 21, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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NKT AS (STU:NKT) achieved a 26% organic growth in 2024, marking the ninth consecutive quarter of double-digit growth in both revenue and EBITDA.
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The company reported a record-high operational EBITDA of EUR 344 million, up from EUR 255 million in 2023.
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NKT AS generated a satisfying level of free cash flow amounting to EUR 400 million for the year.
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The acquisition of the Portuguese power cable manufacturer Solidal has been successfully integrated, contributing positively to revenue.
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NKT AS made significant progress on sustainability, reducing Scope 1 and Scope 2 emissions by 68% from the 2019 baseline.
Negative Points
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Organic growth in the applications business line was slightly negative due to continued weakness in the construction-exposed low voltage segment.
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The margin for the solutions business line slightly declined due to a different product mix and increased costs related to new factory construction.
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The company anticipates limited growth in solutions for 2025 due to unchanged production and installation capacity.
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NKT AS expects a step-up in CapEx for 2025, which could lead to a negative free cash flow for the year.
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The company faces challenges in achieving its sustainability targets, particularly due to emissions from installation vessels and power losses from installed cables.
Q & A Highlights
Q: How does NKT view the potential competition from Chinese OEMs in the power cable market? A: Claes Westerlind, CEO, stated that NKT is not afraid of competition but emphasizes the importance of fair competition on European soil. Currently, NKT does not see significant competition from Chinese OEMs in high-end procurement processes in Europe, particularly in HVDC and high-end segments.