Full-year results in line with consensus
TKH Group NV reported adjusted EBITA for the full year 2025 of €189.5 million, a 7% decline from the prior year and essentially in line with the company-compiled consensus of €189.9 million. Management highlighted a fourth-quarter improvement, which helped support the full-year outcome.
Fourth-quarter recovery and margin detail
In the fourth quarter adjusted EBITA rose 7% to €70.5 million. Revenue on an organic basis increased 8.7% in the quarter while the adjusted EBITA margin held steady at 14.6%. The Electrification segment posted the strongest organic growth, expanding 29.0% in the quarter. Management attributed that surge to higher output of offshore inter-array cables at the Eemshaven factory coupled with persistent demand in onshore energy markets.
The Vision segment recorded organic growth of 1.8% in the quarter despite a challenging comparison period. By contrast, Machine Vision experienced a 6.9% decline in organic revenue, which the company linked to lower order intake.
Eemshaven ramp-up: issues resolved but delays with larger cable dimensions
Company management said the primary issues related to the ramp-up of the Eemshaven subsea cable facility have been resolved. However, the ramp of larger cable dimensions took longer than expected during the fourth quarter, which constrained output and necessitated an upgrade to a key production line. These operational headwinds limited production in the period even as the broader Electrification segment expanded.
Outlook and strategic priorities
For 2026 TKH Group expects organic growth in both turnover and adjusted EBITA, compared to consensus estimates of 3% and 25% growth respectively. The company cautioned that the first quarter of 2026 will be weak.
Under the Capitalise & Execute 2028 strategic framework, announced in September, TKH Group is positioning itself as a leading asset-light automation company. The strategy emphasizes Smart Vision and Smart Manufacturing tyre building activities, which together account for about 60% of turnover. The company intends to divest its Smart Connectivity electrification cable activities within the next 12 to 18 months.
New financial targets were set for the Automation business, including a goal of 5% to 7% organic growth per year and a 2028 EBITA margin target of 17% to 19%. For Electrification the company is targeting organic growth above 7% and an EBITA margin of 12% to 15%.