NKT (NKT) Q1 2026 earnings summary

Executive summary

• Achieved record order intake exceeding EUR 4.2 billion in Q1 2026, raising the Transmission order backlog to a record EUR 13.5 billion, driven by major project wins such as Eastern Green Link 3 and SSEN.

• Operational EBITDA reached EUR 97 million, up from EUR 81 million, with margin improvement to 16% across all business lines.

• New business line structure implemented from January 2026 to support the Charging Forward strategy.

• Organic growth was -4%, mainly due to the planned ramp-down of the Champlain Hudson Power Express project in Transmission.

Financial highlights

• Revenue at standard metal prices was EUR 610 million (down from EUR 630 million), reflecting -4% organic growth; revenue at market prices reached EUR 864 million (up from EUR 837 million).

• Operational EBITDA increased to EUR 97 million from EUR 81 million, with margin rising to 16% from 12.9%.

• Free cash flow was EUR -92 million, mainly due to high investment levels.

• Net result for Q1 2026 was EUR 61 million.

• Return on capital employed was 22%, down from 24% at the end of Q4, due to increased capital employed from ongoing investments.

Outlook and guidance

• 2026 revenue at standard metal prices expected between EUR 2.63 billion and EUR 2.78 billion; operational EBITDA guidance maintained at EUR 360–410 million.

• Transmission revenue expected to see a mid-single digit organic decline, with margin dilution of around 2 percentage points from ramp-up costs.

• Assumptions include stable market conditions, satisfactory execution of high-voltage projects, and no major supply chain disruptions.

• Grid Solutions and Accessories expected to benefit from high market activity; Distribution to contribute positively, with new capacity in Denmark and Portugal ramping up.

• Outlook assumes cost increases, especially in plastics, are contained within guidance.