NKT A/S Reports Strong 2024 Performance with Significant Growth
NKT A/S Reports Strong 2024 Performance
NKT A/S has recently unveiled its annual report for 2024, highlighting a remarkable 26% organic growth in revenue and record-high operational EBITDA. Claes Westerlind, the CEO of NKT, emphasized the significant milestones reached during the year.
Transformational Year for NKT
2024 marked a transformative year for NKT, as the company executed its strategic plans effectively. Key initiatives included advancements in customer commitments, substantial expansions, and a continued dedication to sustainability. The successful acquisition of SolidAl and the divestment of NKT Photonics were pivotal in NKT's transition into a pure-play provider of power cable solutions.
Financial Highlights
The financial performance of NKT in 2024 exceeded expectations. The revenue reached an impressive EUR 2,489 million, demonstrating a significant rise from EUR 1,927 million in 2023. The operational EBITDA climbed to EUR 344 million, a substantial increase from EUR 255 million the previous year. These results affirm NKT's solid standing in the market and signify robust growth across all business lines.
Operational Details
NKT's success can be attributed to multiple factors contributing to organic growth in all three core business lines: Solutions, Applications, and Service & Accessories. The Solutions division reported a surge of 39% in organic growth due to strategic investments and stellar execution of previous orders. Operational EBITDA in this segment soared to a record EUR 252 million in 2024.
Order Backlog and High-Voltage Projects
NKT's ability to secure high-voltage projects reflects its industry-leading capacity and expertise. The company ended the year with an impressive high-voltage order backlog of EUR 10.6 billion, supported by consistent order intake. This robust performance assures stakeholders of the company’s continued growth potential in the future.
Outlook for 2025
Looking forward, NKT anticipates revenue (in standard metal prices) to be in the range of EUR 2.37 billion to EUR 2.52 billion and operational EBITDA between EUR 330 million and EUR 380 million. This forecast is contingent upon successful execution across various projects, stable economic conditions, and a robust performance across all its operations.
Commitment to Sustainability
NKT remains dedicated to sustainability, a core aspect of its ReNew BOOST strategy. The company acknowledges its critical role in climate change mitigation through the cable solutions it produces. NKT's progress towards its long-term net-zero target for 2050 has been verified by the Science Based Targets initiative (SBTi), affirming its commitment to environmental responsibility.
Investor Engagement
NKT A/S will host a teleconference for investors and financial analysts soon, providing an opportunity for stakeholders to gain further insights into the company's strategies and future directions. Registration details will be available on NKT's investor relations website prior to the event.
Frequently Asked Questions
What is the main financial achievement of NKT in 2024?
NKT achieved a 26% organic growth in revenue and recorded an operational EBITDA of EUR 344 million in 2024.
How has NKT positioned itself in the power cable market?
NKT has transformed into a pure-play power cable solutions provider through strategic acquisitions and divestments.
What factors contributed to NKT's revenue growth?
The revenue growth was driven by significant investments, successful project executions, and acquisition impacts across all business lines.
What are NKT's financial projections for 2025?
NKT expects revenues between EUR 2.37 billion to EUR 2.52 billion and EBITDA of approximately EUR 330 million to EUR 380 million in 2025.
How is NKT addressing sustainability issues?
NKT is committed to sustainability and has set a long-term target for net-zero emissions by 2050, verified by the SBTi.
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