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TKH Reports Lower First-Half Profit Due to Cable Division Challenges
TKH's first-half 2025 revenue decreased to €858.1 million from €867.2 million in 2024, with adjusted EBITDA down 18.1 percent to €80.2 million due to weak European fiber optic cable demand and initial production issues at its new Eemshaven cable factory; however, the smart vision systems division showed strong growth.
- What are the key factors contributing to TKH's decreased profitability in the first half of 2025, and what are the immediate financial consequences?
- TKH, a Haaksbergen-based company, experienced a decrease in revenue from €867.2 million to €858.1 million in the first half of 2025 compared to the same period in 2024. Despite an organic revenue increase of 1.5 percent, adjusted EBITDA dropped by 18.1 percent to €80.2 million. This is largely attributed to challenges in their cable division.
- What are the long-term implications of the challenges faced by TKH's cable division, and how will the new strategy presented in September address these issues?
- TKH's new inter-array cable factory in Eemshaven, while contributing to future growth in offshore wind cable production, initially faced production issues, impacting Q2 results. The company expects improved performance in the second half of 2025, although the cable division's challenges will persist until then. The company maintains its full-year expectations and will present a new strategy in September.
- How did the performance of TKH's different divisions (smart connectivity systems, smart vision systems, and the bandenmachines division) contribute to the overall results?
- The decline in TKH's profitability stems from issues within its smart connectivity systems, which saw an 83.1 percent decrease in adjusted EBITDA due to low prices, high costs, and weak demand for fiber optic cables in Europe. Conversely, the smart vision systems division performed well, with a 35.4 percent increase in EBITDA, driven by strong sales of 2D and 3D machines.
Cognitive Concepts
Framing Bias
The article presents a balanced picture of TKH's performance in the first half of 2025. While it highlights the negative impacts of the new cable factory and low demand, it also notes positive performance in the smart vision systems division. The headline, if present, would heavily influence the framing; however, no headline is provided in the source text.
Language Bias
The language used is generally neutral and factual, focusing on quantitative data such as omzet (revenue) and ebita (earnings before interest and taxes). While terms like "duikelen" (plummeted) are used, they are descriptive rather than overtly biased. However, the article might benefit from more precise language; for instance, "organische omzetstijging van 1,5 procent" could be clarified to indicate if this is an increase or decrease and specify the basis for calculation.
Bias by Omission
The article focuses primarily on the financial performance of TKH, mentioning challenges in specific divisions. However, it omits information regarding the overall market conditions impacting the industry. Further context on competitor performance or broader economic factors affecting the cable and machinery sectors would provide a more complete picture. While the article mentions 'low prices, high costs, low margins, and weak demand,' it lacks specific data or analysis to support these claims. The article also doesn't address potential internal factors affecting TKH's performance beyond operational issues in specific divisions. Omission of this context might limit the reader's ability to fully assess TKH's situation.
Sustainable Development Goals
The article reports a decrease in TKH's turnover and profitability in the first half of the year, indicating a negative impact on decent work and economic growth. The decline in the adjusted operating result (EBITA) by 18.1 percent reflects challenges in maintaining employment and economic stability within the company. The challenges faced by the company, including low prices, high costs, low margins, and weak demand, directly affect job security and economic prospects.