TKH Group (TWEKA) Q4 2025 earnings summary

Executive summary

• H2 2025 performance was substantially better than H1, with strong Q4 results and significant improvement in Electrification.

• Automation and Vision Technologies benefited from technology leadership, innovation rates above 17%, and growing demand for smart, software-driven applications.

• Electrification saw strong onshore demand, high market share above 80%, and Q4 recovery after earlier output issues, though offshore cable ramp-up costs impacted EBITA.

• Strategic focus is shifting toward Automation, with separation of Electrification underway and major contract wins, including an 8-year, €650 million deal with Alliander/Liander.

• Portfolio optimization advanced with Dewetron divestment and ongoing ESG progress, including EcoVadis Gold and improved CDP rating.

Financial highlights

• FY2025 organic turnover grew 4.9% to €1,761.2 million; Q4 organic turnover up 8.7% to €483.7 million.

• Adjusted EBITA/EBITDA declined 7.2% organically to €189.5 million; Q4 EBITA at €70.5 million (+8.1% organically).

• Free cash flow improved to €75 million for the year, with stronger conversion in H2.

• Net profit was €94.3 million, down 5.3% year-over-year; EPS at €2.37.

• Net debt reduced to €461.4 million (from €496.0 million); leverage ratio at 1.9.

• One-off expenses in 2025 totaled €16.8 million, mainly from restructuring, divestments, and asset transfers.

Outlook and guidance

• Organic growth in turnover and Adjusted EBITA expected for 2026, though Q1 is anticipated to be weak.

• Strategic targets for 2028: Automation 5–7% organic turnover CAGR, EBITA margin 17–19%, ROCE 25–30%; Electrification >7% organic turnover CAGR, EBITA margin 12–15%, ROCE 18–23%.

• Continued optimization and separation of Electrification and Automation to unlock value.