TKH Group (TWEKA) Q1 2025 earnings summary

Executive summary

• Q1 2025 turnover was €420.0 million, nearly flat year-over-year, with 2.2% organic growth led by Smart Vision and Smart Connectivity, while Smart Manufacturing declined due to a strong prior-year comparison and digitalization market weakness.

• EBITA (excluding one-offs) was €40.0 million, down from €41.2 million in Q1 2024, with cost-saving measures expected to benefit results from Q2 onward.

• Order book increased slightly to €1,137 million, supported by a robust sales funnel of over 70 projects and 11,000 km under tender through 2030.

• Dewetron divestment completed for €54 million, generating a one-off net profit of €36 million, with proceeds to be allocated based on net debt/EBITDA ratio.

• Results followed a strong Q4, with growth in all segments except Smart Connectivity, which was impacted by a weak digitalization market.

Financial highlights

• Smart Vision achieved 5.2% organic growth, with machine vision nearing 20% organic growth; order book increased for the fifth consecutive quarter.

• Smart Manufacturing saw a 1.2% organic turnover decline, but return on sales remained high due to efficiency programs and Unix technology adoption.

• Smart Connectivity posted 2.1% organic growth, with offshore/onshore energy up, but digitalization weakness and Eemshaven ramp-up costs impacted results.

• Return on sales (ROS) was 9.5%, down from 9.8% in Q1 2024; added value at 51.2% versus 51.8% prior year.

• Major contract signed for 130 km inter-array cable for Waterkant offshore park; several long-length cables delivered in April.

Outlook and guidance

• Full-year 2025 outlook reiterates organic growth in turnover and EBITA/EBITDA, excluding one-off items.

• Smart Vision and Smart Connectivity expected to drive growth, while Smart Manufacturing is projected to decline organically due to lower order intake and a strong 2024 base.

• Cost-saving measures to positively impact results from Q2 onward.

• Direct cost impact from recent tariff announcements assessed as limited.