NKT has increased its operational earnings before interest, tax, depreciation and amortisation (EBITDA) ambition for 2028 to above €700m from previously above €550m.
The decision reflects the effects of the ongoing investments and the underlying profitability of the high-voltage order backlog.
In May 2023 announced updated medium-term financial ambitions for 2025 and 2028 in connection with the announcement of the investment in a new high-voltage factory next to its existing facility in Karlskrona, Sweden, and a second cable-laying vessel.
The expansion will turn Karlskrona into one of the world’s largest high-voltage offshore cable production sites and improve NKT’s abilities to meet the growing demand for especially long-length high-voltage DC (HVDC) power cable solutions.
During 2024, NKT has announced investments in capacity and capabilities across its high-voltage factory in Cologne, Germany and medium-voltage factories in Denmark, Sweden, and the Czech Republic.
Furthermore, the acquisition of the Portuguese power cable manufacturer, SolidAl, was completed and an investment in the new site in Portugal announced.
The above investments, including the acquisition of SolidAl, are expected to contribute positively to NKT’s organic revenue growth and operational EBITDA.
At the same time, the earnings visibility from the increased high-voltage order backlog has improved.
The financial outlook for 2025 is expected to be announced in connection with the release of company’s 2024 annual report 2024 which will replace the previous medium-term ambitions for 2025.