NKT A/S Q3 2021: Earnings increase driven by broad-based growth

·4-min read

Company announcement

17 November 2021
Announcement no. 16

NKT A/S Q3 2021: Earnings increase driven by broad-based growth

NKT CEO Alexander Kara confirms the preliminary Q3 2021 performance update provided on 19 October 2021:

- We have improved our financial performance during 2021, and this continued in Q3 driven by further growth in both NKT and NKT Photonics. It is satisfactory to see that NKT continues to benefit from the green transformation and the successful implementation of improvement initiatives. NKT Photonics continued to grow as the market conditions improved after the negative impact of COVID-19 in 2020.

Financial highlights


NKT Photonics


Q3 2021

Q3 2021




Organic growth



Operational EBITDA



Operational EBITDA margin



* Std. metal prices

2021 financial outlook
The financial outlooks are unchanged from Company Announcement No. 15 of 19 October 2021.

In NKT, revenues (std. metal prices) are expected to be approx. EUR 1.2bn (previously EUR 1.1–1.2bn) and the operational EBITDA is expected to be approx. EUR 125-135m (previously upper end of EUR 80–110m).

In NKT Photonics, the organic revenue growth is expected to be approx. 8-15% and the EBITDA margin is expected to be approx. 6-8%.

The financial outlooks for both NKT and NKT Photonics remain subject to uncertainty due to the general market situation of constrained access to both raw materials and materials for the production as well as the continued unknown development of the COVID-19 pandemic.

NKT: Continued positive development in revenues and operational EBITDA
NKT increased revenue (std. metal prices) from EUR 300m in Q3 2020 to EUR 333m in Q3 2021, corresponding to 10% organic growth. Operational EBITDA went up from EUR 21.4m in Q3 2020 to EUR 44.8m in Q3 2021 with positive contributions from all three business lines. In addition, the operational EBITDA was positively impacted by an insurance income of EUR 20.7m.

NKT's high-voltage order backlog was EUR 2.97bn at end-Q3 2021 (EUR 2.52bn in std. metal prices). This was down from EUR 3.16bn (EUR 2.66bn in std. metal prices) compared to the end of the previous quarter although a number of new projects were added in Q3 2021.

NKT has signed an exclusive Preferred Supplier Agreement for delivery of the high-voltage DC power cable system to the prospective Champlain Hudson Power Express transmission line in the USA. The potential project is expected to have a value of approx. EUR 1.1bn (based on current market metal prices). As NKT has not received a firm order, the project is not included in the high-voltage order backlog.

NKT Photonics: Record-high Q3 revenue
NKT Photonics’ revenue in Q3 2021 amounted to EUR 18.5m, up from EUR 16.7m in Q3 2020. This corresponded to organic growth of 10%. The Industrial and Quantum & Nano Technology segments were the growth contributors, with broad-based progress across sectors. This was a reversal from Q3 2020 where the segments were the worst affected by the COVID-19 pandemic. EBITDA for Q3 2021 amounted to EUR 3.2m, an increase of EUR 2.2m compared to Q3 2020. The growth in earnings was primarily caused by higher revenue together with higher gross margin from a more favourable product mix.

In July 2021, the Board of Directors decided to resume the review of strategic alternatives for NKT Photonics, with the objective of maximizing value creation. The review is ongoing and J.P. Morgan Securities plc has been retained as lead financial advisor.

NKT A/S hosts a teleconference for investors and financial analysts at 10:00 am CET on 17 November 2021. It can be accessed at investors.nkt.com. The presentation for the call will be available before the teleconference. To attend, please dial in from (confirmation code: 3973837):

DK +45 32 72 04 17
UK +44 207 192 8338
US +1 646 741 3167

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