NKT – NKT launches new strategy, medium-term financial ambitions for 2030 and updates to the organisation

November 19, 2025

Announcement No. 25

NKT launches new strategy, medium-term financial ambitions for 2030 and updates to the organisation

NKT is launching its new corporate strategy, Charging Forward, and announces medium-term financial ambitions for 2030. At the same time, NKT changes its organisational structure to ensure execution on the company’s strategic priorities.

Over the past decade, NKT has undergone a transformation which is now successfully completed. From a diversified conglomerate once exposed to mature and declining industries, NKT has transformed into a growing, pure-play power cable solutions provider and a European leader in the energy transition.

In the past five years, the European energy transition has accelerated, driven by increased renewable power generation, electrification of societies, and grid modernisation. In anticipation of this, NKT initiated significant investments in physical assets and people across the company, which have fuelled growth in revenues and earnings and increased the order backlog.

Today, the company is well positioned to serve the growing market demands. As a result, the strategic focus shifts from transformation and accelerated growth in capacity and capabilities to driving excellence in execution and sustainable competitiveness. At the same time, there is a high focus on technology leadership and selective growth to strengthen the pure-play power cable portfolio. To drive value creation and guide the company through to 2030, NKT is launching its new corporate strategy, Charging Forward.

– It is all about execution, being strong enough to scale up quickly, while preserving our technological differentiation, sharpening our competitiveness, leading in sustainability, and keeping people at the centre, says Claes Westerlind, President & CEO of NKT.

Charging Forward aims to further strengthen the company’s position as a leading, pure-play power cable solutions provider. The strategy is structured around three pillars:

Execute – Deliver on high-voltage backlog and capacity expansions by effectively managing projects and deploying scalable capabilities.
Excel – Be the reliable partner for customers, employees and society while unlocking greater value from existing assets and strengths to enhance competitiveness, and future earnings.
Evolve – Drive continuous innovation and develop the technology leaps for the future. Target selective growth.

With Charging Forward, NKT will build upon its leading position in Europe, capture opportunities globally, and ensure long-term sustainable competitiveness. In a world of rising electrification demand and geopolitical uncertainty, the ability to deliver reliably, sustainably, and at scale will define NKT’s leadership and shape the future of energy transmission.

Medium-term financial ambitions for 2030

To accompany the Charging Forward strategy, NKT is launching financial ambitions for 2030. At the same time, the current 2028 ambitions updated in Company Announcement no. 35 of December 2024 are confirmed and unchanged.

The energy transition and general electrification of societies in Europe are expected to continue driving demand for power cable solutions. This development will be supported by NKT’s investments in increased capacity and, together with the execution of the high-voltage order backlog, will be the main drivers of the improved financial performance.

The financial KPIs are unchanged but new ambitions for 2030 are launched:

*Standard metal prices

Delivering on the medium-term ambitions is based on several assumptions. Currently, the most critical are the following:

Satisfactory execution and development of high-voltage investments and projects in the backlog to deliver on expected profitability margin trajectory
Satisfactory execution of medium-voltage investments
Market demand supporting a continued favourable supply/demand balance
Ensure high-voltage project awards securing high utilisation of production and installation assets
Stable supply chain with limited disruptions and access to the required labour, materials and services
Stable development of the global economy, foreign currency and metal prices

NKT maintains its expectation of accumulated capital expenditures (capex) of around EUR 2bn in total for the years 2025-2028. Currently no major investments are planned beyond 2028. In the absence of this, repair and maintenance capex is expected to be around 4% of revenues measured in standard metal prices. NKT’s business model requires a robust capital structure, and the target of a leverage ratio (net interest-bearing debt relative to operational EBITDA) of up to 0.0x is maintained.

Update of the business line focus and names

With the launch of the new strategy, NKT strengthens its differentiated power cable offerings through the update of business line names and focus to reflect the company’s strategic priorities.

Solutions becomes Transmission

In recent years, the Solutions business line has shifted towards a strong mix of extra high-voltage (EHV) projects characterised by long cable lengths and high installation complexity. These projects are best defined as Transmission. Delivering them calls for advanced cable technology, strong project and risk management, complex engineering, experienced teams at scale, innovative installation techniques, and a highly solution-oriented approach.

Service & Accessories becomes Grid Solutions & Accessories

NKT Service offerings have expanded significantly, supporting grid upgrades and repairs across diverse geographies. To accelerate market share growth in alternating current (AC) EHV and high-voltage (HV) onshore projects, Service and AC onshore operations are combined under Grid Solutions, covering the full AC onshore segment. Accessories will continue to play a critical role by delivering best-in-class joints and terminations for EHV, HV, and medium-voltage (MV) power cable systems.

Applications becomes Distribution

After a strategic realignment of the industrial footprint to establish focused centres of excellence, the Applications business line has made significant investments in medium-voltage production capacity while continuing its activities within low-voltage power cables and building wires. The Distribution name underscores the business lines’ expertise in power cables for electric grids, renewable power generation, data centres, and industrial networks.

These changes mark an important step in NKT’s journey to strengthen its market position and deliver on the ambitions of Charging Forward. By aligning business lines with strategic priorities, NKT is better equipped to support the energy transition and meet growing global demand for reliable power cable solutions.

Changes to the Group Leadership Team of NKT

With the changes to the organisational structure, the NKT Group Leadership Team will also be adjusted:

Darren Fennell, currently Executive Vice President and Head of HV Solutions Karlskrona, will assume the role of Executive Vice President and Head of Transmission.
Raphael Görner will join NKT latest 1 April 2026 as Executive Vice President and Head of Grid Solutions. Until Raphael Görner joins, Will Hendrikx, COO and deputy CEO, will act as interim Head of Grid Solutions.
Denis Schuler will continue as Executive Vice President and Head of Accessories. For external reporting purposes, Grid Solutions and Accessories will be reported as one business line.
Carlos Fernandez, Executive Vice President and Head of Applications, will continue as Executive Vice President and Head of Distribution.
Lukas Sidler, Executive Vice President and Head of HV Solutions Cologne, and Axel Barnekow Widmark, Executive Vice President and Head of Service & Installation, have decided to pursue career opportunities outside NKT. They will leave the company by the end of 2025 and latest by the end of the first quarter 2026, respectively.

The positions of the other members of the Group Leadership Team will remain unchanged.

Next steps

The changes to the business lines will be implemented 1 January 2026. Financial reporting in the new business lines will commence in May 2026 in connection with the release of the Q1 2026 report. Two years historic business line financials will be restated and communicated in due course before the release of the Q1 2026 report.

In September 2026, NKT will host an Investor Day in Karlskrona, Sweden presenting the details of Charging Forward as well as a business status for each of the updated business lines.

The Q1-Q3 2025 interim report will be released on 19 November 2025 in accordance with NKT’s financial calendar.

SourceNKT

EMR Analysis

More information on NKT: See the full profile on EMR Executive Services

More information on Claes Westerlind (President and Chief Executive Officer, NKT): See the full profile on EMR Executive Services

More information on Line Andrea Fandrup (Executive Vice President, Chief Financial Officer, NKT till end of April 2026): See the full profile on EMR Executive Services

More information on Charging Forward (Corporate Strategy 2025) by NKT: See the full profile on EMR Executive Services

More information on Solutions Business Line by NKT (to be renamed Transmission Business Line by NKT as from January 1, 2026): See the full profile on EMR Executive Services

More information on Applications Business Line by NKT (to be renamed Distribution Business Line by NKT as from January 1, 2026): See the full profile on EMR Executive Services

More information on Service & Accessories Business Line by NKT (to be renamed Grid Solutions & Accessories Business Line by NKT as from January 1, 2026): See the full profile on EMR Executive Services

More information on Darren Fennell (Members of the Global Leadership Team, Executive Vice President, Head of HV Solutions Karlskrona, NKT till December 31, 2025 + Members of the Global Leadership Team, Executive Vice President, Head of Transmission Business Line, NKT as from January 1, 2026): See the full profile on EMR Executive Services

More information on Will Hendrikx (Members of the Global Leadership Team, Chief Operating Officer and Deputy Chief Executive Officer, NKT + Members of the Global Leadership Team, Executive Vice President, Head of Grid Solutions Business Line, NKT as from January 1, 2026 and till April 1, 2026): See the full profile on EMR Executive Services

More information on Raphael Görner (Executive Vice President, Global Energy & Power Solutions Business Unit, Rittal, The Friedhelm Loh Group till January 1, 2026 + Members of the Global Leadership Team, Executive Vice President, Head of Grid Solutions Business Line, NKT as from April 1, 2026): See the full profile on EMR Executive Services

More information on Denis Schuler (Members of the Global Leadership Team, Executive Vice President, Head of Accessories, Service & Accessories Business Line by NKT till December 31, 2025 + Members of the Global Leadership Team, Executive Vice President, Head of Accessories, Grid Solutions & Accessories Business Line by NKT as from January 1, 2026): See the full profile on EMR Executive Services

More information on Carlos Fernandez (Members of the Global Leadership Team, Executive Vice President, Head of Applications Business Line, NKT till December 31, 2025 + Members of the Global Leadership Team, Executive Vice President, Head of Distribution Business Line, NKT as from January 1, 2026): See the full profile on EMR Executive Services

More information on Lukas Sidler (Members of the Global Leadership Team, Executive Vice President, Head of HV Solutions Cologne, NKT till December 31, 2025): See the full profile on EMR Executive Services

More information on Axel Barnekow Widmark (Members of the Global Leadership Team, Executive Vice President, Head of Service & Installation, NKT till end of Q1 2026): See the full profile on EMR Executive Services

EMR Additional Notes:

Grid, Microgrids, DERs and DERM’s:
- Grid / Power Grid:
  - The power grid is a network for delivering electricity to consumers. The power grid includes generator stations, transmission lines and towers, and individual consumer distribution lines.
    - The grid constantly balances the supply and demand for the energy that powers everything from industry to household appliances.
    - Electric grids perform three major functions: power generation, transmission, and distribution.
- Microgrid:
  - Small-scale power grid that can operate independently or collaboratively with other small power grids. The practice of using microgrids is known as distributed, dispersed, decentralized, district or embedded energy production.
- Smart Grid:
  - Any electrical grid + IT at all levels.
- Micro Grid:
  - Group of interconnected loads and DERs (Distributed Energy Resources) within a clearly defined electrical and geographical boundaries witch acts as a single controllable entity with respect to the main grid.
- Distributed Energy Resources (DERs):
  - Small-scale electricity supply (typically in the range of 3 kW to 50 MW) or demand resources that are interconnected to the electric grid. They are power generation resources and are usually located close to load centers, and can be used individually or in aggregate to provide value to the grid.
    - Common examples of DERs include rooftop solar PV units, natural gas turbines, microturbines, wind turbines, biomass generators, fuel cells, tri-generation units, battery storage, electric vehicles (EV) and EV chargers, and demand response applications.
- Distributed Energy Resources Management Systems (DERMS):
  - Platforms which helps mostly distribution system operators (DSO) manage their grids that are mainly based on distributed energy resources (DER).
    - DERMS are used by utilities and other energy companies to aggregate a large energy load for participation in the demand response market. DERMS can be defined in many ways, depending on the use case and underlying energy asset.

Power Cable:
- A power cable is a type of electrical cable used to transmit electrical power. It typically consists of one or more insulated conductors surrounded by a protective outer sheath.
- Types of power cables:
  - Overhead cables: These are suspended from poles or towers and are commonly used for long-distance power transmission.
  - Underground cables: These are installed underground and are typically used for local distribution or in areas where overhead lines are impractical or unsafe.
  - Submarine cables: These are laid underwater to connect islands, countries, or offshore wind farms to the mainland power grid.
  - Medium-voltage cables: These are used for the distribution of electrical power from substations to local areas.
  - Low-voltage cables: These are used for the final distribution of power to individual homes and businesses.
Superconducting Power Cable:
- A superconducting power cable is a type of electrical cable that uses superconducting materials to conduct electricity with zero resistance. This means that no energy is lost due to heat dissipation, making it significantly more efficient than traditional copper or aluminum cables. Superconducting cables can be used to transmit large amounts of power over long distances with minimal energy losses.
High-Temperature Superconducting (HTS) Cable:
- High-temperature superconducting (HTS) cables are electrical wires that can carry large amounts of current with no resistance, or energy loss, when cooled to a specific low temperature. Unlike conventional copper cables, they don’t produce heat during operation. The “high-temperature” designation is relative, meaning they can operate at temperatures achievable with the more affordable and abundant liquid nitrogen (~-196°C), rather than the much colder liquid helium required for older, low-temperature superconductors. This makes them a more practical technology for power transmission and other applications.
Telecommunication Cable:
- Distinct category of cable with a different primary purpose: transmitting signals rather than power.
- Telecommunication cables transmit various signals, like voice, data, and video, over distances and include types such as twisted pair cables, which use insulated copper wires for signals; coaxial cables, designed to carry both signals and ground in concentric layers; and fiber optic cables, which transmit data as pulses of light.

Extra Low-Voltage (ELV):
- Extra-Low Voltage (ELV) is defined as a voltage of 50V or less (AC RMS), or 120V or less (ripple-free DC).
Low-Voltage (LV):
- The International Electrotechnical Commission (IEC) defines Low Voltage (LV) for supply systems as voltage in the range 50–1000 V AC or 120–1500 V DC.
Medium-Voltage (MV):
- Medium Voltage (MV) is a voltage class that typically falls between low voltage and high voltage, with a common range being from 1 kV to 35 kV. In some contexts, this range can extend higher, up to 69 kV.
High-Voltage (HV):
- The International Electrotechnical Commission define high voltage as above 1000 V for alternating current, and at least 1500 V for direct current.
Super High-Voltage or Extra High-Voltage (EHV):
- Super High-Voltage or Extra High-Voltage (EHV) is the voltage class used for long-distance bulk power transmission. The range for EHV systems is typically from 230 kV to 800 kV.
Ultra High-Voltage (UHV):
- Ultra High-Voltage (UHV) is the highest voltage class used in electrical transmission, defined as a voltage of 1000 kV or greater.

CapEx vs. OpEx:
- Capital expenditures (CapEx) are a company’s major, long-term expenses while operating expenses (OpEx) are a company’s day-to-day expenses.
- Examples of CapEx include physical assets, such as buildings, equipment, machinery, and vehicles. Examples of OpEx include employee salaries, rent, utilities, and property taxes.

EBIT:
- Earnings Before Interest and Taxes (EBIT) is a measure of a company’s operating profitability before accounting for interest expenses and income taxes. It is also known as operating profit and shows how effectively a company’s core business is generating profit from its operations.
EBITA:
- Earnings before interest, taxes, and amortization (EBITA) is a measure of company profitability used by investors. It is helpful for comparing one company to another in the same line of business.
- EBITA = Net income + Interest + Taxes + Amortization
EBITDA:
- Earnings before interest, taxes, depreciation, and amortization (EBITDA) is an alternate measure of profitability to net income. By including depreciation and amortization as well as taxes and debt payment costs, EBITDA attempts to represent the cash profit generated by the company’s operations.
- EBITDA and EBITA are both measures of profitability. The difference is that EBITDA also excludes depreciation.
- EBITDA is the more commonly used measure because it adds depreciation—the accounting practice of recording the reduced value of a company’s tangible assets over time—to the list of factors.
EV/EBITDA (Enterprise Multiple):
- Enterprise multiple, also known as the EV-to-EBITDA multiple, is a ratio used to determine the value of a company.
- It is computed by dividing enterprise value by EBITDA.
- The enterprise multiple takes into account a company’s debt and cash levels in addition to its stock price and relates that value to the firm’s cash profitability.
- Enterprise multiples can vary depending on the industry.
- Higher enterprise multiples are expected in high-growth industries and lower multiples in industries with slow growth.

AC (Alternating Current) & DC (Direct Current) & UC (Universal Current):
- Direct current (DC): Electric current that is uni-directional, so the flow of charge is always in the same direction. As opposed to alternating current, the direction of direct currents does not change. It is used in many household electronics and in all devices that use batteries.
  - Direct current has many uses, from the charging of batteries to large power supplies for electronic systems, motors, and more. Very large quantities of electrical energy provided via direct-current are used in the smelting of aluminum and other electrochemical processes.
  - In contrast to AC power, DC power is more efficient for long-distance transmission, especially at high voltages, because it avoids the reactive power losses and skin effect associated with AC. This makes it more suitable for long-distance power grids.
- Alternating Current (AC): Used in homes because it can be easily stepped up or stepped down with the help of transformers, whereas direct current cannot. This ability to easily convert voltage allows for efficient transmission of electricity over long distances at high voltage before it is stepped down to a low, safe voltage for home use.
- Universal Current (UC): Means it can accept either DC or AC. So a 24 V UC input can accept either 24 V AC or 24 V DC.