NKT A/S

“The overall energy transition, electrification of society, and need to transmit and interconnect grids continues to be a key structural growth driver for high-voltage power cable solutions.”

Annual report 2025A · The company itself

“These developments have increased the demand for DC technology relative to AC.”

Annual report 2025A · The company itself

“Due to the increased demand for longer-distance transmission, NKT foresees power cable solutions based on DC technology to constitute the majority of awards going forward.”

Annual report 2025A · The company itself

“With robust demand and known supply additions, NKT expects the balance between supply and demand to remain favourable in the short term, before becoming more balanced at the end of the decade.”

Annual report 2025A · The company itself

“The market for medium-voltage power cables remained robust, as the energy transition and ongoing electrification of society continued to positively influence the level of investments made by distribution system operators. This supported the demand in the power distribution grid segment throughout the year.”

Annual report 2025A · The company itself

“The new factory, including an extrusion tower adjacent to the existing facility in Karlskrona, the expansion of the Cologne factory, and a new market-leading cable-laying vessel are all expected to become operational in 2027.”

Annual report 2025A · The company itself

“As a result, NKT in 2024 decided to invest in increased capacity across multiple medium-voltage production facilities. In 2025 the investments continued to progress according to plan, with the new capacity in Sweden and Czech Republic becoming operational in the first quarter of the year. Furthermore, the additional capacity in Denmark is expected to ramp up during the first half of 2026, while the investments in Portugal are expected to become operational at the end of 2026.”

Annual report 2025A · The company itself

“Specialised in high-voltage power cable solutions for on- and offshore installation On- and offshore power cable services and wide range of accessories for medium- and high-voltage power cable systems Applications Focused on low-and medium-voltage power cable technology and building wires NKT’s three business lines provide customers with full turnkey solutions across voltage levels and have the following main focus areas: Business line organisation 1 Revenue (standard metal prices) in 2025 (% of total NKT revenue) and Operational EBITDA in 2025 (% of total NKT operational EBITDA).”

Annual report 2025A · The company itself

“Solutions serves the global high-voltage power cable market. The business provides technology-leading solutions across voltage levels and technical specifications.”

Annual report 2025A · The company itself

“Applications covers NKT’s medium-and low-voltage power cable offerings, as well as a minor position within telecom power cables. The product offering is tailored to broadly support both the growing electricity demand in European power grids and the construction sector.”

Annual report 2025A · The company itself

“Executive Vice President, Head of Distribution Applications Service & Accessories offers a variety of both offshore and onshore power cable accessories and services to maximise the utilisation, reliability, and long-term performance of power cable systems. NKT provides power cable services for both offshore and onshore markets and is a trusted partner throughout the lifecycle of a power cable system.”

Annual report 2025A · The company itself

“Megatrends shaping the power cable industry and NKT's strategic rationale Rising electrification and power demand Electricity demand is expected to grow steadily through 2060, increasing by 140% globally. Worldwide electricity consumption is expected to increase from 32 PWh per year in 2024 to 77 PWh per year by 2060 driven by decarbonisation, electrified heating and transport, data-driven industries, and digital infrastructure including data centres and the use of artificial intelligence (AI).”

Annual report 2025A · The company itself

“In the medium-voltage market, we continued to see a high activity level driven by grid reinforcement, renewable energy projects, and increased focus on electrification.”

Annual report 2025A · The company itself

“The Applications business line is mainly driven by the ongoing optimisation of the power grids by private and public stakeholders in the medium-voltage market, including those arising from the green transition, while construction development in both residential and non-residential building segments is driving the market for construction-exposed low-voltage cables and building wires.”

Annual report 2025A · The company itself

“The overall energy transition, electrification of society, and need to transmit and interconnect grids continues to be a key structural growth driver for high-voltage power cable solutions.”

Annual report 2025A · The company itself

“demand is primarily driven by the general energy transition and electrification of society. The power cables are mainly used for the power distribution grid with a continuous need for grid reinforcement and expansion.”

Annual report 2025A · The company itself

“Sources of energy are increasingly being located further away from consumption causing the demand for longer distance power transmission to increase. Additionally, high-voltage power cable systems are required to transmit more power to support the increased electrification of society.”

Annual report 2025A · The company itself

“NKT continued investing in additional capacity to meet growing demand driven by increasing electrification and the ongoing energy transition. These factors are key growth drivers for low- and medium-voltage power cable markets, where Applications is well positioned to capitalise on market trends and secure further profitable growth. ■ Asnaes, Denmark ■ Drammen, Norway ■ Esposende, Portugal ■ Falun, Sweden ■ Kladno, Czech Republic ■ Knurow, Poland ■ Runcorn, United Kingdom ■ Velké Mezirici, Czech Republic ■ Warszowice, Poland Medium-voltage cables 1 kV cables Building wires Telecom power cables Factories The seven primary production sites are located in: Applications The NKT offerings in the medium-and low-voltage markets complement the advanced offerings for the high-voltage market.”

Annual report 2025A · The company itself

“Power cable systems are central to a dynamic energy ecosystem, enabling the transition to clean energy and electrification of society.”

Annual report 2025A · The company itself

“NKT facilitates the transmission of energy by connecting energy sources to the existing power grid. NKT enables the energy transition and electrification of society by supplying power cable systems for distribution and transmission of energy.”

Annual report 2025A · The company itself

“As electricity becomes the dominant energy carrier, power grids must expand and strengthen to accommodate higher loads and new patterns of consumption. This shift places power cable systems at the centre of the energy transition.”

Annual report 2025A · The company itself

“The expected installation of renewables translates directly into demand for onshore and offshore power cables. Strengthening connections between renewable-rich regions and centres of consumption will remain a central requirement for achieving climate ambitions.”

Annual report 2025A · The company itself

“Power grids are forecast to grow 2.4 times in length. Global transmission networks are estimated to reach 20 million circuit-km by 2060, and distribution grids will expand to 225 million circuit-km. Despite short-term constraints in Europe and North America where permitting and supply chain delays slow project delivery, global grids are set for sustained and widespread expansion through 2060. The North American grid is expected to grow threefold by 2060.”

Annual report 2025A · The company itself

“Global grid infrastructure is ageing and an estimated 40-50% of global infrastructure in mature markets is approaching the end of its design life. In parallel, developing regions, especially Southeast Asia, will experience rapid grid expansion to support growing economies and large-scale renewable integration. The combination of renewals and expansions is expected to lead to a significant increase in grid investments rising from approximately EUR 337bn annually today to more than EUR 800bn by mid-century, with a cumulative investment need of up to EUR 20tn.”

Annual report 2025A · The company itself

“In Solutions, the growth was driven by a high activity level and overall satisfactory project execution, while Applications benefitted from continued robust demand in the power distribution grid segment and additional medium-voltage capacity.”

Annual report 2025A · The company itself

“In 2025, NKT continued to play a key role by supporting the reinforcement, development, and interconnection of global power grids essential for powering modern life.”

Annual report 2025A · The company itself

“NKT facilitates the transmission of energy by connecting energy sources to the existing power grid. NKT enables the energy transition and electrification of society by supplying power cable systems for distribution and transmission of energy.”

Annual report 2025A · The company itself

“Accelerated renewable energy deployment Global renewable capacity continues to grow at record speed. Solar remains the largest driver of new generation, while Europe leads in offshore wind development. By 2060, solar power will dominate electricity generation with a projected share of 47%, increasing fivefold from 2024, while wind is estimated to account for 32%, making these two sources the backbone of global energy supply.”

Annual report 2025A · The company itself

“In the medium-voltage market, we continued to see a high activity level driven by grid reinforcement, renewable energy projects, and increased focus on electrification.”

Annual report 2025A · The company itself

“Divided by application, the backlog consisted of more than 55% interconnectors, around 40% offshore wind projects, and less than 2% power-from-shore projects.”

Annual report 2025A · The company itself

“The Service business maintained a high activity level throughout 2025, driven by several activities across maintenance projects, installation works, and both offshore and onshore repair projects - including a larger repair job at the Beatrice wind farm in Scotland.”

Annual report 2025A · The company itself

“In Karlskrona, the strategic focus is offshore projects, while Cologne focuses on onshore projects.”

Annual report 2025A · The company itself

“Specialised in high-voltage power cable solutions for on- and offshore installation On- and offshore power cable services and wide range of accessories for medium- and high-voltage power cable systems Applications Focused on low-and medium-voltage power cable technology and building wires NKT’s three business lines provide customers with full turnkey solutions across voltage levels and have the following main focus areas: Business line organisation 1 Revenue (standard metal prices) in 2025 (% of total NKT revenue) and Operational EBITDA in 2025 (% of total NKT operational EBITDA).”

Annual report 2025A · The company itself

“The Distribution name underscores the business line’s expertise in power cables for electric grids, renewable power generation, data centres, and industrial networks.”

Annual report 2025A · The company itself

“On the one hand, increasing supply-chain localisation is creating uncertainty in access to key materials, with copper and aluminium facing potential structural shortages by 2030.”

Annual report 2025A · The company itself

“In 2025, we advanced our efforts toward a low-carbon future by entering a long-term agreement with Hydro for the supply of low-carbon aluminium wire rod until 2033. This partnership secures access to a critical raw material and contributes to lowering the carbon footprint of our power cable solutions.”

Annual report 2025A · The company itself

“NKT is exposed to and diligently managing the inherent uncertainty in pricing of commodities and raw materials, which can affect production costs, profit margins, and overall financial performance.”

Annual report 2025A · The company itself

“Supply interruption and raw material availability risk pertains to the uncertainty associated with the accessibility and adequacy of raw materials essential for manufacturing and operational processes. This risk is influenced by factors such as market dynamics, geopolitical environment and events affecting supply chains, environmental conditions impacting resource extraction, regulatory changes, and the number of available suppliers.”

Annual report 2025A · The company itself

“The scope of the DMA is defined by segmenting upstream suppliers by economic relevance and potential impact to identify high risk materials (copper, aluminium, steel, lead, XLPE, PVC) and to map key supply chains.”

Annual report 2025A · The company itself

“Knights' 2026 Global 100 Most Sustainable Corporations NKT joins First Movers Coalition NKT joined the First Movers Coalition (FMC) aluminium sector in 2025, committing to ensuring that at least 10% (by volume) of allprimary aluminium purchased each year will be low-carbon by 2030.”

Annual report 2025A · The company itself

“Megatrends shaping the power cable industry and NKT's strategic rationale Rising electrification and power demand Electricity demand is expected to grow steadily through 2060, increasing by 140% globally. Worldwide electricity consumption is expected to increase from 32 PWh per year in 2024 to 77 PWh per year by 2060 driven by decarbonisation, electrified heating and transport, data-driven industries, and digital infrastructure including data centres and the use of artificial intelligence (AI).”

Annual report 2025A · The company itself

“NKT continues to see an increased electricity demand driven by charging stations for electric vehicles, data centres, heat pumps, and the general electrification and digitalisation of society.”

Annual report 2025A · The company itself

“After a strategic realignment of NKT’s 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 line’s expertise in power cables for electric grids, renewable power generation, data centres, and industrial networks.”

Annual report 2025A · The company itself

“Construction of a new high-voltage factory next to the existing factory in Karlskrona is ongoing, alongside investments to increase production capacity in Cologne.”

Annual report 2025A · The company itself

“Furthermore, the growth was supported by additional medium-voltage capacity as a result of the completed investment projects in Sweden and Czech Republic during Q1 2025.”

Annual report 2025A · The company itself

“The customer relationship in Applications is based on long-term collaboration with several industry partners. NKT holds a leading position in parts of Northern, Central, Eastern, and Southern Europe. strategy announced in November 2025, the Applications business line has been renamed Distribution effective 1 January 2026.”

Annual report 2025A · The company itself

“The key focus will be on solidifying NKT’s position in Europe for medium-voltage power cables for grids, renewables, and infrastructure sectors.”

Annual report 2025A · The company itself

“The Bornholm Energy Island is among the first hybrid grid connections enhancing the interconnection between Denmark and Germany while integrating offshore wind into the two countries’ energy supply. In 2023, NKT was awarded the interconnector project on the German side of the energy island.”

Annual report 2025A · The company itself

“In Germany the installation of the corridor projects SuedLink and SuedOstLink continued. When fully operational they will transform the power grid of Germany by enabling the transmission of large amounts of renewable energy from the north of Germany to the main consumption areas in central and southern Germany.”

Annual report 2025A · The company itself

“Capacity expansions in Sweden and the Czech Republic were completed early in the year, while the additional capacity in Denmark is expected to come online from 2026 as planned.”

Annual report 2025A · The company itself

“The announced investment at the site in Portugal is progressing as planned and is expected to become operational at the end of 2026.”

Annual report 2025A · The company itself

“The strategy builds on NKT’s leading position in Europe, while selectively capturing opportunities globally where a sustainable, long-term presence can be enhanced.”

Annual report 2025A · The company itself

“NKT’s ambition is to be the European leader in turnkey onshore EHV and HV cable systems in a growing market driven by strong electrification, renewable energy, and grid replacement and renewal trends.”

Annual report 2025A · The company itself

“NKT provides power cable services for both offshore and onshore markets and is a trusted partner throughout the lifecycle of a power cable system. The company has leading capabilities within repair, maintenance, and operations services with the organisation predominantly located in Denmark, Germany, Poland, Sweden, the US, and the UK.”

Annual report 2025A · The company itself

“Despite increasing geopolitical uncertainty, NKT expects most project awards to originate in Europe where higher market maturity drives strong demand for power cable systems. While markets outside of Europe are less developed, NKT continues to see opportunities emerging.”

Annual report 2025A · The company itself

“NKT estimates the value of projects awarded in its addressable market to be around EUR 4bn. The projects awarded in 2025 were primarily long-distance DC interconnectors and offshore wind projects, with the majority of projects being awarded in Europe.”

Annual report 2025A · The company itself

“Solutions operates two high-voltage factories, in Karlskrona, Sweden, and Cologne, Germany. These factories complement each other in the allocation of incoming projects.”

Annual report 2025A · The company itself

“These factors are key growth drivers for low- and medium-voltage power cable markets, where Applications is well positioned to capitalise on market trends and secure further profitable growth. ■ Asnaes, Denmark ■ Drammen, Norway ■ Esposende, Portugal ■ Falun, Sweden ■ Kladno, Czech Republic ■ Knurow, Poland ■ Runcorn, United Kingdom ■ Velké Mezirici, Czech Republic ■ Warszowice, Poland Medium-voltage cables 1 kV cables Building wires Telecom power cables Factories The seven primary production sites are located in: Applications The NKT offerings in the medium-and low-voltage markets complement the advanced offerings for the high-voltage market.”

Annual report 2025A · The company itself

“The main accessory production sites are located in: ■ Alingsas, Sweden ■ Nordenham, Germany Service hubs NKT has service hubs globally. The main sites are in: ■ Brondby, Denmark ■ Brisbane, Australia ■ Cary, USA ■ Gdansk, Poland ■ Karlskrona, Sweden ■ Troisdorf, Germany Power cable accessory offerings Terminations Connect cable ends to consumers or overhead lines Connectors Connect cable ends to switchgear or transformer Joints Connect two cable ends The onshore market is served by local companies, multinationals, and some cable operators themselves.”

Annual report 2025A · The company itself

“Moreover, increasing global focus on prioritising national security interests and affordability, could impact energy transition investments.”

Annual report 2025A · The company itself

“NKT is subject to a wide range of EU and non EU regulatory requirements covering product compliance, sustainability, health and safety, environmental protection, and chemical regulations. Changes in regulatory requirements and required changes in business operations, product design and composition, including restrictions on various substances used in production and carbon footprint reduction targets, may result in increased costs, technical limitations, and administrative burdens.”

Annual report 2025A · The company itself

“In 2025, we advanced our efforts toward a low-carbon future by entering a long-term agreement with Hydro for the supply of low-carbon aluminium wire rod until 2033. This partnership secures access to a critical raw material and contributes to lowering the carbon footprint of our power cable solutions.”

Annual report 2025A · The company itself

“Knights' 2026 Global 100 Most Sustainable Corporations NKT joins First Movers Coalition NKT joined the First Movers Coalition (FMC) aluminium sector in 2025, committing to ensuring that at least 10% (by volume) of allprimary aluminium purchased each year will be low-carbon by 2030.”

Annual report 2025A · The company itself

“Firstly, by maximising the contribution to the decarbonisation of society through the facilitation and enablement of clean electricity in grid infrastructure - NKT’s handprint.”

Annual report 2025A · The company itself

“Sustainability remains at the core of the strategy, with a clear ambition of maintaining NKT’s position as a recognised leader of sustainable cable solutions.”

Annual report 2025A · The company itself

“In 2025 Accessories expanded its portfolio of sustainable products with the introduction of the new KSEV S5 switchgear termination. This solution is fully compatible with alternatives that are free of sulphur hexafluoride (SF6), a potent greenhouse gas.”

Annual report 2025A · The company itself

“In 2025, NKT carried out a number of actions that support its decarbonisation ambitions: ■ NKT signed a landmark supply agreement with Hydro to secure low-carbon aluminium until 2033. ■ NKT joined the First Movers Coalition (aluminium sector) and committed to sourcing at least 10% low-carbon aluminium by 2030. ■ NKT continued phasing out natural gas in factories to move closer to zero emissions in some of the company's operations.”

Annual report 2025A · The company itself

“Changes in regulatory requirements and required changes in business operations, product design and composition, including restrictions on various substances used in production and carbon footprint reduction targets, may result in increased costs, technical limitations, and administrative burdens.”

Annual report 2025A · The company itself

“As part of this market development, there was a growing emphasis on multi-year framework agreements, including two awarded to us by EnBW, one of Germany’s largest DSOs. supporting the energy transition Throughout the year, we executed on projects in the high-voltage order backlog essential for the energy transition and transmission security globally.”

Annual report 2025A · The company itself

“In 2025, we advanced our efforts toward a low-carbon future by entering a long-term agreement with Hydro for the supply of low-carbon aluminium wire rod until 2033. This partnership secures access to a critical raw material and contributes to lowering the carbon footprint of our power cable solutions.”

Annual report 2025A · The company itself

“While some segments and geographies showed improvements, the overall muted economic development in Europe, following years with elevated inflation levels and increased interest rates, negatively impacted construction sentiment and market activity.”

Annual report 2025A · The company itself

“The overall market for building wires and construction-exposed 1 kV power cables remained subdued in 2025.”

Annual report 2025A · The company itself

“In 2026, the market for building wires and construction-exposed 1kV power cables is expected to stabilise or slightly improve compared to 2025.”

Annual report 2025A · The company itself

“Applications covers NKT’s medium-and low-voltage power cable offerings, as well as a minor position within telecom power cables. The product offering is tailored to broadly support both the growing electricity demand in European power grids and the construction sector.”

Annual report 2025A · The company itself

“Investments in capacity expansions on track to meet future demand During the year, we reached several significant milestones as the execution of the investments in capacity expansion continued. At the high-voltage site in Karlskrona, Sweden, we inaugurated a new logistics centre as the first completed building, revealed the name of our third extrusion tower, and started construction of new harbour facilities in preparation for our second cable-laying vessel, NKT Eleonora.”

Annual report 2025A · The company itself

“To further embed sustainability in product development, NKT launched the Eco-Gate framework. This structured approach aims among other objectives to increase circularity across NKT’s product portfolio.”

Annual report 2025A · The company itself

“Through an expanded portfolio of low-carbon products and increased collaboration with value chain partners on circular economy initiatives, NKT continued to address customers' growing demand for products with lower environmental impact.”

Annual report 2025A · The company itself

“The realisation of synergies are on track, and by end-2026, EUR 7 million is expected to be realised per year.”

Annual report 2025A · The company itself

“Double-digit organic growth and increased operational EBITDA ■ Demand in the power distrubution grid segment remained robust ■ Continued progress on investments to add medium-voltage capacity ■ Integration of SolidAl completed 842m Revenue , EUR (2024: EUR 689m) 11% (2024: -2%) 89m (2024: EUR 64m) High organic revenue growth In 2025, Applications increased revenue by EUR 153m compared to 2024 supported by the integration of SolidAl, now renamed NKT Esposende, which was acquired in June 2024.”

Annual report 2025A · The company itself

“The updated Sustainability Strategy forms an integral part of Charging Forward and is built around three strategic pillars: Environment, Social, and Governance. Each pillar encompasses specific focus areas that guide NKT’s actions and commitments towards 2030 and beyond.”

Annual report 2025A · The company itself

“The new factory, including an extrusion tower adjacent to the existing facility in Karlskrona, the expansion of the Cologne factory, and a new market-leading cable-laying vessel are all expected to become operational in 2027.”

Annual report 2025A · The company itself

“Looking at the composition of the order backlog by customer type, approximately 95% of the orders are with large European Transmission System Operators.”

Annual report 2025A · The company itself

“On the one hand, increasing supply-chain localisation is creating uncertainty in access to key materials, with copper and aluminium facing potential structural shortages by 2030.”

Annual report 2025A · The company itself

“NKT is exposed to and diligently managing the inherent uncertainty in pricing of commodities and raw materials, which can affect production costs, profit margins, and overall financial performance.”

Annual report 2025A · The company itself

“Supply interruption and raw material availability risk pertains to the uncertainty associated with the accessibility and adequacy of raw materials essential for manufacturing and operational processes. This risk is influenced by factors such as market dynamics, geopolitical environment and events affecting supply chains, environmental conditions impacting resource extraction, regulatory changes, and the number of available suppliers.”

Annual report 2025A · The company itself

“The scope of the DMA is defined by segmenting upstream suppliers by economic relevance and potential impact to identify high risk materials (copper, aluminium, steel, lead, XLPE, PVC) and to map key supply chains.”

Annual report 2025A · The company itself

“Geopolitical tensions and shifts in national agendas are adjusting trade flows, creating a challenging value chain landscape. On the one hand, increasing supply-chain localisation is creating uncertainty in access to key materials, with copper and aluminium facing potential structural shortages by 2030.”

Annual report 2025A · The company itself

“As a result, European transmission markets are among the most attractive in the world at the moment and, as a consequence, competition is intensifying, with an increased presence of Asian manufacturers expanding production and installation capacity in our core market.”

Annual report 2025A · The company itself

“The accelerated geopolitical and geoeconomic developments, including the ongoing conflict in Europe and trade barriers impacting the general economy, present a potential threat for market developments and the supply chain. Adding to this uncertainty is continued high levels of volatility and changes in the political environment within the European Union.”

Annual report 2025A · The company itself

“Increased geopolitical and geoeconomic uncertainty and volatility pose a risk to NKT’s business operations. This includes new trade restrictions, local content requirements, new EU trade agreements, shifting focus from the green transition to energy- and security-independence, investments in infrastructure, uncertainty of European supply chain, affordability, and competitiveness.”

Annual report 2025A · The company itself

“Despite these tangible improvements, NKT remains challenged on fulfilling its absolute decarbonisation targets as it continues to grow.”

Annual report 2025A · The company itself

“While some segments and geographies showed improvements, the overall muted economic development in Europe, following years with elevated inflation levels and increased interest rates, negatively impacted construction sentiment and market activity.”

Annual report 2025A · The company itself

“Contractual provisions with customers and suppliers to address price volatilities in ongoing business relationships. ■ Material and supplier risk assessment. ■ Monitoring and closely collaborating with key suppliers to ensure performance and reliability and the availability of raw material and components. ■ Efficient inventory management and qualifying alternative sources. ■ Monitoring global market, macro-economic trends, and regulatory changes affecting cross-regional activities, including trade barriers and anti-dumping rules. ■ Focus on quality, innovation, and research and development. ■ Proactive engagement in regulatory policy-making processes via industry associations to ensure fair competition within European markets.”

Annual report 2025A · The company itself

“NKT’s production activities are dependent on large amounts of essential raw materials and commodities. These input costs may be subject to price volatility risk resulting from unpredictable fluctuations on the market. This risk arises from various factors, including changes in supply and demand, geopolitical events, regulations, governmental policies, and market speculations.”

Annual report 2025A · The company itself

“Megatrends shaping the power cable industry and NKT's strategic rationale Rising electrification and power demand Electricity demand is expected to grow steadily through 2060, increasing by 140% globally. Worldwide electricity consumption is expected to increase from 32 PWh per year in 2024 to 77 PWh per year by 2060 driven by decarbonisation, electrified heating and transport, data-driven industries, and digital infrastructure including data centres and the use of artificial intelligence (AI).”

Annual report 2025A · The company itself

“Moreover, the rapid advancement of AI technologies is one of the factors that contributes to a higher level of security threat.”

Annual report 2025A · The company itself

“Increased geopolitical and geoeconomic uncertainty and volatility pose a risk to NKT’s business operations. This includes new trade restrictions, local content requirements, new EU trade agreements, shifting focus from the green transition to energy- and security-independence, investments in infrastructure, uncertainty of European supply chain, affordability, and competitiveness.”

Annual report 2025A · The company itself

“Global grid infrastructure is ageing and an estimated 40-50% of global infrastructure in mature markets is approaching the end of its design life. In parallel, developing regions, especially Southeast Asia, will experience rapid grid expansion to support growing economies and large-scale renewable integration. The combination of renewals and expansions is expected to lead to a significant increase in grid investments rising from approximately EUR 337bn annually today to more than EUR 800bn by mid-century, with a cumulative investment need of up to EUR 20tn.”

Annual report 2025A · The company itself

“Accelerated renewable energy deployment Global renewable capacity continues to grow at record speed. Solar remains the largest driver of new generation, while Europe leads in offshore wind development. By 2060, solar power will dominate electricity generation with a projected share of 47%, increasing fivefold from 2024, while wind is estimated to account for 32%, making these two sources the backbone of global energy supply.”

Annual report 2025A · The company itself

“While some segments and geographies showed improvements, the overall muted economic development in Europe, following years with elevated inflation levels and increased interest rates, negatively impacted construction sentiment and market activity.”

Annual report 2025A · The company itself

“In 2026, the market for building wires and construction-exposed 1kV power cables is expected to stabilise or slightly improve compared to 2025.”

Annual report 2025A · The company itself

“These changes may include shifts in consumer preferences, fluctuations in supply and demand, technological advancements, regulatory modifications, and competitive pressures. The risk stems from potential difficulties in adapting adequately to rapidly evolving market conditions, which could lead to challenges in maintaining market share, profitability, and competitive positioning.”

Annual report 2025A · The company itself

“As many other companies, NKT is dependent on IT infrastructure to maintain its operations. Cyber risks represent harm or loss arising from the compromise of business-critical IT systems in production or key business administrative functions, networks, or digital assets, impacting an organisation's data confidentiality, integrity, and system availability. At its core, potential consequences of such threats may be production interruption with subsequent financial and reputational impact.”

Annual report 2025A · The company itself

“NKT continues to see an increased electricity demand driven by charging stations for electric vehicles, data centres, heat pumps, and the general electrification and digitalisation of society.”

Annual report 2025A · The company itself

“While some segments and geographies showed improvements, the overall muted economic development in Europe, following years with elevated inflation levels and increased interest rates, negatively impacted construction sentiment and market activity.”

Annual report 2025A · The company itself

“Systemic challenges in switching to sustainable fuels The main challenge in reaching the Scope 1 and 2 target relates to the high cost of switching to sustainable fuels such as hydrotreated vegetable oil (HVO) and e-methanol for cable-laying vessels. In addition to NKT Victoria, NKT is investing in sustainable fuel capabilities for its second cable-laying vessel, NKT Eleonora.”

Annual report 2025A · The company itself

“The scope of the DMA is defined by segmenting upstream suppliers by economic relevance and potential impact to identify high risk materials (copper, aluminium, steel, lead, XLPE, PVC) and to map key supply chains.”

Annual report 2025A · The company itself

“Demand for building wires and other construction-exposed solutions is supported by urbanisation, electrification, construction, and renovation of residential and non-residential buildings including renovations to reduce energy consumption.”

Annual report 2025A · The company itself

“The scope of the DMA is defined by segmenting upstream suppliers by economic relevance and potential impact to identify high risk materials (copper, aluminium, steel, lead, XLPE, PVC) and to map key supply chains.”

Annual report 2025A · The company itself

“Demand for building wires and other construction-exposed solutions is supported by urbanisation, electrification, construction, and renovation of residential and non-residential buildings including renovations to reduce energy consumption.”

Annual report 2025A · The company itself

“We also reinforced our strong market position in the UK with the preferred supplier designation for the Eastern Green Link 3 offshore interconnector between Scotland and England. In January 2026, we signed contracts for two high-voltage power cable projects in Scotland, which will strengthen the electricity transmission grid in Great Britain.”

Annual report 2025A · The company itself

“In the US, we are finalising the Champlain Hudson Power Express project, which will transmit hydropower from Canada to New York City. When operational, this power cable line will deliver up to 20% of New York City’s electricity – the equivalent of around one million homes.”

Annual report 2025A · The company itself

“For example, NKT has strengthened its presence in the UK by expanding its organisation and partnering with local suppliers. The company remains committed to maintaining and further enhancing its engagement in the UK and other key markets, actively supporting local communities.”

Annual report 2025A · The company itself

“NKT provides power cable services for both offshore and onshore markets and is a trusted partner throughout the lifecycle of a power cable system. The company has leading capabilities within repair, maintenance, and operations services with the organisation predominantly located in Denmark, Germany, Poland, Sweden, the US, and the UK.”

Annual report 2025A · The company itself

“The main accessory production sites are located in: ■ Alingsas, Sweden ■ Nordenham, Germany Service hubs NKT has service hubs globally. The main sites are in: ■ Brondby, Denmark ■ Brisbane, Australia ■ Cary, USA ■ Gdansk, Poland ■ Karlskrona, Sweden ■ Troisdorf, Germany Power cable accessory offerings Terminations Connect cable ends to consumers or overhead lines Connectors Connect cable ends to switchgear or transformer Joints Connect two cable ends The onshore market is served by local companies, multinationals, and some cable operators themselves.”

Annual report 2025A · The company itself

“During the year, NKT advanced the production and installation of the high-voltage 400 kV HVDC Champlain Hudson Power Express transmission line in the US.”

Annual report 2025A · The company itself

“In 2025, we maintained the high level in the order backlog with the announcement of the cable project for the offshore interconnector linking the innovative Bornholm Energy Island to the power grid on Zealand in Denmark. The Bornholm Energy Island is among the first hybrid grid connections enhancing the interconnection between Denmark and Germany while integrating offshore wind into the two countries’ energy supply.”

Annual report 2025A · The company itself

“Risk management activities covering all the project phases. ■ Adequate balancing of insurance, contract provisions, and pre-production testing. ■ Production float and contingency plans to absorb potential delays. ■ Project and risk management activities covering investment process, including continuous monitoring and evaluation to track performance and status. ■ Due diligence process of supply chain and contingency planning for potential adverse scenarios and unplanned disruptions. ■ Operational excellence programmes and monitoring of operational performance for critical equipment and processes. ■ Robust maintenance programmes across production and testing. ■ Contingency plans in place to respond to incidents and unplanned disruptions. ■ Effective strategic procurement, including: ■ Monitoring commodity price indexes and applying forecasting tools. ■ Hedging mechanisms for commodities, components, and services.”

Annual report 2025A · The company itself