NKT Powers Ahead: Record Profits Fuel Green Energy Expansion

COPENHAGEN, Denmark – February 25, 2026 – Power cable giant NKT A/S today announced a record-breaking financial performance for 2025, driven by surging demand from the global energy transition. The company reported its highest-ever operational earnings and a robust 6% organic growth, cementing its position as a critical supplier for the world’s shift to renewable energy.

In a year marked by strategic execution, NKT posted an operational EBITDA of €390 million, a significant €46 million increase from 2024. Total revenue reached €2.72 billion on a standard metal price basis, underscoring broad-based growth across all its business segments. The company also launched an ambitious new corporate strategy, “Charging Forward,” setting aggressive financial targets for 2030.

“2025 was another strong year for NKT, defined by disciplined execution and continued progress on strategic priorities,” said President & CEO Claes Westerlind in the company’s announcement. “We improved our financial performance, maintained our leading position in the power cable industry, and progressed on the investments in capacity expansion for future growth.”

A Record Year Fueled by Electrification

The strong annual results reflect a thriving market for power infrastructure. NKT’s growth was not confined to a single area; all three of its business lines contributed to the positive momentum. The Solutions division, which handles large-scale high-voltage projects, saw revenue climb by €108 million, driven by high activity and satisfactory project execution. Its operational EBITDA for the year stood at €258 million.

The Applications business, focused on power distribution grids, delivered impressive 11% organic growth, bolstered by the integration of its 2024 acquisition, NKT Esposende. This segment successfully capitalized on robust demand for grid modernization, increasing its operational EBITDA by €25 million to €89 million for the year.

Perhaps most notably, the Service & Accessories division demonstrated exceptional performance, achieving 22% organic growth. Its operational EBITDA surged by €35 million to €60 million, with its margin nearly doubling from 9.7% in 2024 to a remarkable 19.1% in 2025. This highlights a dynamic market for both high- and medium-voltage accessories and offshore repair services.

Overall, the company’s net result climbed to €275 million, up from €236 million in the previous year, signaling strong underlying profitability. However, free cash flow was negative at -€244 million, a stark contrast to the positive €400 million in 2024. This figure reflects the company's aggressive investment strategy to prepare for future demand.

Securing the Future with a €10 Billion Backlog

Beyond the impressive annual earnings, NKT’s future outlook is secured by a massive high-voltage order backlog, which stood at a formidable €10.2 billion at the end of 2025. Complemented by over €3.5 billion in additional booking commitments, this backlog provides exceptional long-term revenue visibility and underscores the sustained demand for NKT’s technology.

This demand is primarily fueled by the accelerating green transition. Key drivers include the global expansion of offshore wind farms, which require extensive high-voltage subsea cables to connect to onshore grids, and the urgent need to modernize aging power grids across Europe and beyond. NKT is also a key player in the development of interconnectors—large-scale power lines that transfer renewable energy across national borders.

To capitalize on this structural growth, NKT has unveiled its “Charging Forward” strategy, which sets a clear path to 2030. The company is targeting an organic revenue growth rate exceeding 7% annually and aims to more than double its current operational EBITDA to over €900 million by the end of the decade. These ambitions signal a clear intent to not just participate in but lead the market for energy infrastructure.

Investing Heavily in Tomorrow's Grid

To meet its ambitious goals and deliver on its backlog, NKT is in the midst of a significant capital expenditure program. The company is investing approximately €1 billion between 2023 and 2026 to expand its high-voltage manufacturing and installation capabilities. A centerpiece of this investment is the construction of a new factory in Karlskrona, Sweden. Dubbed “NKT Crown,” the facility will feature a third extrusion tower and is set to become the world's largest offshore cable manufacturing site.

In parallel, NKT is building a new, state-of-the-art cable-laying vessel, the NKT Eleonora. Designed with sustainability in mind, the vessel will be capable of operating on green methanol, significantly reducing its environmental footprint while enhancing the company’s installation capacity for subsea cables. These major assets are scheduled to become operational from 2027.

The heavy investment phase explains the negative free cash flow for 2025, a deliberate strategy to fund future growth. This proactive expansion is seen as essential in an industry where, according to NKT, current production and installation capacity is insufficient to meet the projected surge in global demand.

Navigating a Transitional Year

While the long-term outlook is exceptionally strong, NKT’s financial guidance for 2026 suggests a period of transition. The company projects revenue between €2.63-€2.78 billion and an operational EBITDA of €360-€410 million. The midpoint of this guidance falls slightly below some market expectations, leading analysts to label 2026 a “transitional year.”

This conservative forecast is attributed to the timing of major projects, with some, like the Champlain Hudson Power Express, beginning to ramp down before the new capacity expansions fully come online in 2027. Despite the cautious near-term guidance, investor sentiment remains positive, with the market appearing to focus on the company's robust long-term growth story and strategic positioning.

As NKT balances the execution of its current record backlog with unprecedented investments in future capacity, it solidifies its dual commitment. The company is not only profiting from the energy transition but is actively building the foundational infrastructure required to make it a global reality.