TKH Group shares fall 6.3% after FY results

TKH Group shares fall 6.3% after FY results

TKH Group’s shares fell 6.3% following the release of its first-half 2025 financial results, which fell short of market expectations. Adjusted EBITA for the period declined 18% organically to €80.2 million, significantly below the €100.7 million consensus forecast. The underperformance was driven by weak results in the Smart Connectivity segment, where low output and yields at the Eemshaven inter-array cable plant, coupled with thin margins on outsourced work and pricing pressures in fibre optics, contributed to the shortfall. While Smart Vision EBITA rose 41% due to a rebound in machine vision, Smart Manufacturing EBITA fell 19% amid a strong prior-year comparison.

Second-quarter adjusted EBITA dropped 27.8% to €40.2 million, with turnover rising 0.8% organically to €438.3 million. The company attributed the decline to challenges in launching the Eemshaven project and ongoing market pressures. Despite the first-half weakness, TKH expects a significant improvement in EBITA during the second half of 2025, driven by increased production at Eemshaven and stronger demand in offshore energy projects. The firm reiterated its outlook that H2 2025 results will exceed both H1 2025 and H2 2024 levels. Analysts, however, anticipate "material mid-teens" full-year EBITA downgrades due to the prolonged impact of the segment-specific challenges.

The stock’s decline reflects investor concerns over near-term profitability risks, though management remains optimistic about long-term recovery as production stabilizes and new contracts, such as the Gennaker offshore windfarm project, progress.