Strong performance continues in Q2 2026

Highlights Q2 2026

• Total turnover increased by 18.0% organically to €507.6 million, with Automation growing by 5.9% and Electrification by 36.9%

• Adjusted EBITA increased by 67.5% organically to €67.3 million

Highlights H1 2026

• Total turnover increased organically by 14.0% to €955.9 million, with Automation growing by 3.4% and Electrification by 33.3%

• Added value of 50.2% (H1 2025: 50.7%)

• Adjusted EBITA increased by 43.5% organically to €113.7 million, with Automation up by 3.0% and Electrification up 160.4%

• ROS at 11.9% (H1 2025: 9.3%)

• Innovation rate at 16.1% of turnover

• Order intake of €959.3 million, resulting in an order book of €1,031.2 million (December 31, 2025: €1,027.8 million)

• Separation process Electrification on track

Outlook

• Outlook reiterated: TKH expects organic growth in both turnover and Adjusted EBITA in 2026

For further details, including the calculations on organic turnover and Adjusted EBITA growth, see the “Alternative Performance Measures” included in the appendix of this press release.

Alexander van der Lof, CEO of TKH: “During the second quarter of 2026, we made significant financial and operational progress. We achieved an 18% increase in organic turnover and a 67% increase in EBITA, supported by the continued strong performance of our Vision Technology and Electrification business.

Strong demand for onshore energy, a good orderbook for offshore energy as well as the measures taken to increase the operational output of our Eemshaven plant, contributed to the improved performance. The Automation business also continued to grow, driven by Vision Technology. We particularly benefited from strong demand in semiconductors and consumer electronics. Machine Vision’s order book grew further, positioning the business for growth. Automated Machinery’s performance continued to be impacted by the low order intake for Tire Building systems in the previous quarters.

Coupled with the improved performance in Digitalization, this resulted in a 14.0% increase in turnover in the first half of 2026 and growth of over 43.5% in EBITA. During this period, we have also taken further steps in our separation process. We are now structuring our teams for both businesses and have adjusted our reporting structure ahead of the intended separation. 

For FY 2026, we reiterate our expectations for organic turnover and EBITA growth. With the anticipated separation and the intended further divestments, TKH is entering an exciting new chapter, building on its long, trusted heritage. With a robust strategic, financial, and sustainable foundation, TKH will continue to build value in both the Automation and the Electrification activities.”

Progress on separation and update on medium-term guidance

Since the Capital Markets Day in September 2025, we have made good progress on the separation process to create two separate businesses for Automation and Electrification. Going forward, these activities will be reported in separate reporting segments: “Automation”, comprising Vision Technology and Automated Machinery and “Electrification” comprising offshore energy, onshore energy and specialty cables. The activities to be divested, including Digitalization, have been regrouped under the “Other” segment. For an overview, please see page 16 of this press release and the “Financial Overview” section on the TKH website.

Medium-term guidance for Electrification

In preparation for the separation of the Electrification activities, TKH is providing medium-term guidance to the market for Electrification on a standalone basis. This guidance supersedes and replaces all the provisional information previously disclosed by TKH that may be attributable to the Electrification activities, including the 2028 targets provided at the Capital Markets Day on 25 September 2025.

Going forward, focus will be on EBITDA as a key metric for these activities, rather than EBITA, in line with the common practice for these activities.

Over the medium term the following is targeted:

Revenue guidance has been updated, reflecting a robust order backlog and stronger demand for Medium Voltage and High Voltage (HV) cables. Margin expansion is expected to be driven primarily by operational efficiencies inclusive of the Eemshaven plant and a favorable sales mix from amongst others HV cable projects within the Onshore Energy segment.

Capitalize & Execute 2028 targets for Automation

The Capitalize & Execute 2028 targets for Automation, as presented at TKH’s Capital Markets Day on 25 September 2025, remain unchanged.

ESG

During the first half of 2026, TKH made progress on its environmental, social, and governance (ESG) objectives, remaining on track to achieve its long-term sustainability targets. Turnover related to the Sustainable Development Goals (SDGs) reached 75%. Our company VMI was awarded a Platinum EcoVadis Medal for its progress toward sustainability, placing it among the top 1% most sustainable companies worldwide. During the first half of the year, TKH initiated a comprehensive climate-related resilience analysis, incorporating forward-looking scenario modeling to evaluate the exposure of its assets and operations to transition risks and opportunities.

Financial highlights Q2 2026

Turnover in Q2 2026 amounted to €507.6 million, a 18.0% organic increase in turnover on Q2 2025. Compared to Q2 2025, divestments had a negative 1.9% effect on turnover, while currency effects accounted for a 0.2% decrease. Both Automation and Electrification recorded organic turnover growth during the quarter, up by 5.9% and 36.9% respectively. Within Automation, Vision Technology showed 16.1% organic growth in turnover, while Automated Machinery recorded a 5.5% organic decline compared to Q2 2025.

Adjusted EBITA amounted to €67.3 million, a 67.5% organic increase from Q2 2025. Automation’s Adjusted EBITA showed marked organic growth compared to Q2 2025, as well as sequential quarterly growth compared to Q1 2026. Electrification’s Adjusted EBITDA also recorded strong organic growth compared to Q2 2025, as well as sequential quarterly growth compared to Q1 2026.  Order intake in Q2 2026 reached €508.1 million (Q2 2025: €381.8 million), and ROS increased to 13.3% (Q2 2025: 9.2%).

Financial developments H1 2026

Turnover in H1 2026 amounted to €955.9 million, representing organic growth of 14.0% (H1 2025: €858.1 million). Divestments reduced turnover by 1.9%, while currency effects had a negative impact of 0.6%. Order intake in H1 2026 amounted to €959.3 million (H1 2025: €803.3 million), resulting in an order book as of June 30, 2026 of €1,031.2 million (December 31, 2025: €1,027.8 million).

Added value amounted to 50.2% in H1 2026 (H1 2025: 50.7%). The change in product mix, with a larger contribution by Electrification, resulted in a lower added value as a percentage of turnover, although Electrification’s added value improved compared to H1 2025. Operating expenses (excluding amortization and impairments) increased by 3.3% compared to H1 2025, mainly due to turnover-related costs. In addition, H1 2025 included depreciation on the Eemshaven factory for only one quarter. Divestments had a net negative impact of 3.2%.

As a result, Adjusted EBITA increased by 43.5% organically to €113.7 million in H1 2026 (H1 2025: €80.2 million). ROS increased to 11.9% (H1 2025: 9.3%).

One-off expenses of €4.5 million were recorded in H1 2026, mainly relating to acquisitions and divestments, and some restructuring costs (H1 2025: one-off expense of €16.3 million). An impairment of €1.2 million was recognized, primarily due to portfolio rationalizations.

Net interest expenses decreased to €13.0 million (H1 2025: €13.3 million), due to lower interest rates and lower net debt. The exchange rate difference amounted to a negative €4.2 million (compared to €1.9 million in H1 2025), due to the strengthening of the euro against the US dollar and Chinese yuan.

The normalized effective tax rate was lower at 24.2% in H1 2026 compared to 25.6% in H1 2025.

Net profit before amortization and one-off income and expenses attributable to shareholders increased by 57.3% to €56.6 million (H1 2025: €36.0 million), mainly due to the higher Adjusted EBITA. Net profit amounted to €47.3 million (H1 2025: €13.6 million), including a €2.8 million profit contribution from the Alphatronics divestment.

Net interest-bearing debt according to the bank covenants increased by €41.0 million from year-end 2025 to €502.4 million on June 30, 2026. Items affecting the debt level include an increase in working capital (€46 million), net investments in property, plant, and equipment (€29 million), investments in intangible assets (€29 million), and dividends paid (€54 million). Cash flow from operating activities amounted to €75.4 million (H1 2025: €41.2 million). The net debt/EBITDA ratio was 1.8 (H1 2025: 2.6), which is within the financial ratio agreed with our banks. Solvency improved to 40.5% (H1 2025: 36.8%).

As of June 30, 2026, TKH employed a total of 6,633 FTEs (December 31, 2025: 6,759 FTEs), of which 482 were temporary employees (December 31, 2025: 455 FTEs).

Developments by segment

AUTOMATION

In H1 2026, Automation turnover grew organically by 3.4% to €486.1 million. While Vision Technology recorded strong growth in its order book, the total order book for Automation decreased to €429.3 million (December 31, 2025: €492.9 million), reflecting the lower order book in Automated Machinery. Added value remained stable. The Adjusted EBITA increased by 3.0% to €89.5 million. ROS for H1 2026 amounted to 18.4% (H1 2025: 18.6%).

In H1 2026, Vision Technologies’ turnover grew organically by 12.1% to €270.0 million. The order book increased to €170.1 million (December 31, 2025: €125.8 million). Added value increased marginally from 62.6% to 62.7%. Higher turnover, together with an increase in added value, resulted in a 27.5% organic increase in Vision systems’ Adjusted EBITA to €54.5 million. ROS for H1 2026 amounted to 20.2% (H1 2025: 17.8%).

Security Vision’s growth in H1 2026 was driven by the delivery of several larger projects, including parking-related ones in the US and other regions. In Machine Vision, both 2D vision and 3D vision recorded strong growth compared to H1 2025. Machine Vision benefited from strong demand from the consumer electronics, battery, factory automation, and semiconductor markets, with APAC making a particularly strong contribution. The integration of the 2D brands is well on track, with a successful launch of all 2D branding activities to the one brand Allied Vision. Expectations for Machine Vision are positive for H2 2026, supported by a strong order book.

Automated Machinery

As anticipated, Automated Machinery’s performance in H1 2026 was affected by the lower order intake in Tire Building systems in previous quarters. In H1 2026, turnover decreased organically by 5.7% to €218.5 million. The order book decreased to €259.2 million (December 31, 2025: €367.1 million). Added value decreased from 54.2% to 52.9%, with added value in H1 2025 positively impacted by the completion of several projects. Lower turnover, together with the decline in added value, resulted in a 21.1% organic decrease in the Adjusted EBITA to €35.0 million. ROS amounted to 16.0% in H1 2026 (H1 2025: 19.2%).

Current geopolitical circumstances, high energy costs, and tariff uncertainties continue to delay order placements for tire building machines by tire manufacturers. The long-term drivers for advanced Tire Building systems remain intact as the need for greater production flexibility, increased sustainability, and higher levels of automation will fuel future demand for TKH’s highly automated Tire Building systems.

ELECTRIFICATION

As part of the intended carve-out of the Electrification activities, and in line with peers in the Electrification segment, TKH will use EBITDA rather than EBITA as a key metric for these activities.

Turnover in Electrification increased organically by 33.3% to €328.2 million in H1 2026. In Q2 2026, turnover increased organically by 36.9% compared to Q2 2025 and by 19.2% sequentially compared to Q1 2026. The order book grew to €507.8 million (December 31, 2025: €478.2 million). Added value as a percentage of turnover increased from 39.1% to 40.1% in H1 2026, due to a higher share of inter-array cables in the product mix. As a result of the strong growth in turnover, Adjusted EBITDA increased by 90.0% organically to €41.5 million (H1 2025: €21.9 million). Depreciation in H1 2026 increased to €15.1 million (H1 2025: €11.7 million), reflecting timing of the start-up of Eemshaven. Adjusted EBITDA showed also a sequential quarterly growth compared to Q1 2026. This brought the LTM Adjusted EBITDA to €73.8 million. The EBITDA margin improved to 12.6% (H1 2025: 8.9%).

Offshore Energy’s very strong 81.6% growth in turnover was brought about by the strong improvement in the output of inter-array cables at the Eemshaven plant during H1 2026, as production output and yields improved considerably.  As a result of the strong increase in turnover, both added value and Adjusted EBITDA increased further. The current pipeline consists of 92 projects representing >14,400km of inter-array cable.

Onshore Energy benefited from efficiency improvements in the roll-out of networks in the Netherlands, following the removal of a number of regulatory constraints, which resulted in higher installation volumes for energy cables. The current value of signed framework agreements amounts to €1.4 billion, including the recently signed €650 million framework contract with Dutch Distribution System Operator Alliander. These framework agreements are not included in the order book of €507.8 million as of June 30, 2026.

Specialty Cables and customized connectivity systems for the machine-building, robotics, and medical industries were affected by the weak German economy. Despite these market conditions, turnover increased slightly.

TKH expects Electrification’s improved operational performance recorded during the first quarters of 2026 to continue in H2.

OTHER

Turnover in Other increased organically by 15.6% to €144.9 million in H1 2026. Divestments reduced turnover by 11.9%. The divestments relate to Dewetron in H2 2025 and Alphatronics in H1 2026.

Digitalization (75% of “Other” turnover) delivered significant growth in both turnover and EBITA, driven by strong global demand for optical fibers produced at TKH’s facilities in China, as well as the increased output in the Polish factory serving the European fiber optic cable market. The growth of global demand has been driven by substantial investments in AI and the defense industry, resulting in favorable market prices.

Outlook

TKH reiterates its outlook communicated at the publication of its Q1 2026 results. Barring unforeseen circumstances, TKH expects organic growth in both turnover and Adjusted EBITA in 2026.

The presentation of the half year results can be followed via live webcast at 10:00 CET today, August 11, 2026 (www.tkhgroup.com).