17 August 2022
Announcement No. 15
NKT A/S Q2 2022: Improved revenue driven by Solutions and Applications
NKT CEO Alexander Kara says:
– Q2 2022 was another key quarter for NKT in connecting a greener world. Our high-voltage order backlog reached an all-time high level as order intake surpassed EUR 2bn in the quarter. This included two large projects, one in Germany and one in the USA, to transmit renewable energy over long distances. I am also pleased that we continued growing and delivered double-digit organic revenue growth in Q2 2022.
During the quarter we entered into an agreement to divest NKT Photonics. The divestment marks the final step in the process to fully focus on our core business within power cable solutions, where we see an attractive outlook in the years ahead.
|EURm||Q2 2022||H1 2022|
|Operational EBITDA margin||10.8%*||11.4%|
* Std. metal prices
2022 financial outlook
In NKT, the financial outlook is unchanged from Company Announcement No. 2 of 23 February 2022.
Revenue (in std. metal prices) is expected to be approx. EUR 1.35–1.45bn and the operational EBITDA is expected to be approx. EUR 130–155m.
The financial outlook assumes limited financial impact due to the global supply chain challenges.
Q2 2022 development
NKT’s revenue (std. metal prices) in Q2 2022 increased to EUR 381m from EUR 344m in Q2 2021, corresponding to 11% organic growth. The improvement was driven by Solutions and Applications, while Service & Accessories, as expected, realized lower revenue.
The operational EBITDA of EUR 41.3m in Q2 2022 was slightly below the level in the same period in 2021. Solutions contributed with an increasing earnings level, while Applications and Service & Accessories saw a decrease in operational EBITDA. Consequently, the operational EBITDA margin (std. metal prices) decreased from 12.3% in Q2 2021 to 10.8% in Q2 2022.
The high-voltage order backlog reached a new record-high level of EUR 4.6bn (EUR 4.0bn in std. metal prices) at end-Q2 2022. During the quarter, NKT received an order for the SuedOstLink 2nd system in Germany and signed a turnkey contract for the Champlain Hudson Power Express project in the USA. Both projects are large high-voltage DC transmission lines.
Based on the all-time high level of the high-voltage order backlog, and to strengthen NKT’s manufacturing capabilities, NKT will expand its high-voltage production capacity further in Karlskrona, Sweden. The new capacity is expected to be ready for production by end-2023.
In June 2022, NKT entered into an agreement to divest NKT Photonics. The closing of the transaction is subject to regulatory approvals and is expected to take place latest by end-Q1 2023. For accounting and reporting purposes, NKT Photonics is presented as discontinued operations and assets held for sale as of Q2 2022.
NKT A/S hosts a teleconference for investors and financial analysts at 10:00 am CET on 17 August 2022. The presentation to be used during the call will be available before the start of the teleconference. To attend, please register and access on investors.nkt.com (please be aware that this is a new procedure).
Investor Relations: Michael Nass Nielsen, Head of Investor Relations, Tel.: +45 2494 1654
Media Relations: Louise Westh Naldal, Head of Group Communications, Tel.: +45 2982 0022