Company Announcement

16 August 2024
Announcement No. 28

NKT A/S Q2 2024 Interim Report: 29% organic growth and record quarterly EBITDA

NKT CEO Claes Westerlind says:

- In Q2 2024, we continued to execute on our high-voltage order backlog and ongoing investments across business lines, while also delivering continued double-digit growth in revenue and EBITDA. Furthermore, we made strong strategic progress, successfully divesting NKT Photonics and completing the acquisition of Portuguese cable manufacturer, SolidAl. NKT’s position as a pure-play cable manufacturer has been strengthened by this acquisition and we remain well positioned to benefit from robust demand across our power transmission and distribution businesses.

Financial highlights

* Std. metal prices

2024 financial outlook
The financial outlook was updated in Company Announcement No. 20 of 11 July 2024.

Revenue (in std. metal prices) is expected to be approximately EUR 2.33-2.43bn (previously EUR 2.21-2.36bn) and operational EBITDA is expected to be approximately EUR 310-345m (previously EUR 285-335m).

The financial outlook is based on several assumptions including:

• Satisfactory execution and development of high-voltage investments and projects without major disruptions

• Stable market conditions in Applications

• Satisfactory offshore power cable repair work activity

• Stable development of the global economy

• Stable supply chain with limited disruptions and access to the required labour, materials and services

• Stable development in foreign currency and metal prices

Revenue growth across business lines and record quarterly operational EBITDA
In Q2 2024, NKT’s revenue (in std. metal prices) increased by EUR 137m compared to Q2 2023, corresponding to 29% organic growth. Previous investments in capacity and capabilities within Solutions and satisfactory execution drove the majority of growth. Applications and Service and Accessories also contributed with higher revenue compared to Q2 2023.

Driven by strong revenue growth, operational EBITDA increased to EUR 86m in Q2 2024, up by EUR 28m from Q2 2024. The higher earnings level came primarily from Solutions, as well as a record-high quarterly contribution from Applications. This was partially offset by a slight decrease in Service and Accessories, as well as a higher cost base as NKT continued to expand across business lines.

At end-Q2 2024, the high-voltage order backlog was EUR 11.3bn (EUR 9.9bn in std. metal prices). During the quarter, NKT supplemented its high-voltage order backlog with a number of relatively smaller orders, including variation orders to existing projects.