TKH Group (AO) | Buy | Eemshaven delivery improves as separation advances

Research evidence excerpt

TKH Group (AO) | Buy | Eemshaven delivery improves as separation advances

lity. Automated Machinery remains the weak spot, with Tier 1 tyre demand still soft. Net-net, we read

the update positively after management had already flagged a weak Q1. The separation process and continued Eemshaven

improvement remain the key stock drivers.

Q1 trading update

Sales rose 9.6% organically to EUR448.3m, ahead of our +7.0% estimate.

Adjusted EBITA increased 19.1% organically to EUR46.4m, below our EUR48.2m forecast on a lower-than-modelled margin.

Added value as a percentage of turnover was broadly stable at 51.0% (Q1 2025: 51.2%; KECH: 50.7%).

RoS improved 80bps YOY to 10.3% (Q1 2025: 9.5%; KECH: 11.0%).

The group order book stood at EUR1,030.6m, broadly stable versus year-end 2025 (EUR1,027.8m).

Developments per segment

Vision Technologies grew 7.4% organically (KECH: +8%), broadly in line. 3D Vision performed well on the back of consumer

electronics and semicon demand, while Security Vision benefited from the delivery of several larger projects. The Machine Vision

order book at end-Q1 was substantially higher than at year-end 2025.

Automated Machinery turnover fell 6.0% organically (KECH: -3.5%), worse than expected, on the back of lower Tire Building

Machines intake in prior quarters. Q1 intake remained at low levels, further impacted by geopolitical circumstances.

Electrification grew 29.3% organically, driven primarily by increased output of offshore inter-array cables at Eemshaven and

strong, growing demand from Dutch network operators in onshore energy. Specialty cables performed slightly better than Q1

2025. In May, TKH signed a contract for 162km of inter-array cables for Vattenfall's Zeevonk offshore wind farm under the existing

framework agreement.