Improving 1Q26 Performance in Electrification Supports Separation

Research evidence excerpt

Improving 1Q26 Performance in Electrification Supports Separation

sion, driven by semicon, consumer electronics, and defence, offset by a lower

backlog in Automated Machinery. Electrification backlog continues to grow, with a recent order Exhibit 1 - TKH Group Technology

Conglomerate

for the supply of 162 km of inter array cables for Vattenfall's Zeevonk offshore windfarm. Estimated revenue breakdown by segment

Airfield illumination Specialty cables 2D machine vision

7% 8% 3D machine vision cables

7%Limited FY26E guidance confirmed. For FY26E, TKH Group confirms it expects organic Data1%11%

vision

8%growth in turnover and adjusted EBITA, considering nonrecurring costs of c.€15m in FY25, Offshorecables2%electricity 2D securityParking

electricityrelated to start-up losses in Eemshaven, and fibre optics in Poland. Note management had Onshorecables 2%

15% 4%anticipated 1Q26 to be weaker, implying improving momentum for the remainder of the year. Other vision

manufacturing Tire buildingMore guidance is expected to be disclosed during the separation process of Electrification. We Other smart 6% 29% .

have fine-tuned estimates, projecting a 22% EBITA recovery to €231m, 2% ahead of consensus Source: Company data, Jefferies estimates

€226m.

Exhibit 2 - EV/EBITDA+1 vs. peers

Breaking up the conglomerate. The separation of Electrification is in progress under a dual 26.0x23.0x

track and targeted to complete in 4Q26/1Q27, supported by a profitability recovery towards the 20.0x

targeted EBITA margin of 12%-15% by FY28E (vs. 2.3% in FY25) on the back of the Eemshaven 17.0x14.0x

ramp-up. Under Capitalise & Execute 2028, TKH Group focusses on accelerating the transition 11.0x

towards becoming a leading asset-light Automation company, comprising Smart Vision and 8.0x