NKT (NKT) Q2 2026 earnings summary

Executive summary

• Achieved solid financial and operational execution in Q2 2026, highlighted by the commercial operation of the Champlain Hudson Power Express project and progress on strategic priorities under the Charging Forward strategy.

• Organic revenue growth was -9% in Q2 2026, mainly due to lower revenue in the transmission segment as major projects reached commercial operation.

• Maintained high activity across all business lines, with stable operational EBITDA of EUR 104 million and improved margin of 15.7%.

• Major capacity expansion projects in transmission and distribution are progressing as planned, with medium-voltage expansion in Denmark completed and further expansions on track.

Financial highlights

• Q2 2026 revenue at standard metal prices declined to EUR 657 million from EUR 723 million, reflecting -9% organic growth; revenue at market prices was EUR 947 million, nearly flat year-over-year.

• Operational EBITDA was EUR 104 million, stable compared to Q2 2025, with margin improved to 15.7% from 14.5%.

• EBIT was EUR 69 million (Q2 2025: EUR 71 million); net result EUR 52 million (Q2 2025: EUR 54 million).

• Free cash flow was negative at EUR -249 million, mainly due to high investment and working capital outflows.

• Working capital improved to EUR -1,241 million at end-Q2 2026 from EUR -1,524 million at end-Q1 2026.

Outlook and guidance

• 2026 revenue at standard metal prices expected at EUR 2.65–2.75 billion (previously EUR 2.63–2.78 billion); operational EBITDA guidance raised to EUR 400–430 million (previously EUR 360–410 million), reflecting strong execution.

• Transmission revenue expected to decline mid-single digits year-over-year, with margin variability anticipated.

• Distribution expected to benefit from new capacity, contributing up to 10% growth.

• Margin dilution of up to 2 percentage points expected from ramp-up and investment costs.

• Assumes stable market conditions, satisfactory execution of investments, and no significant supply chain disruptions.