Welcome to MT Højgaard Holding's FY 2025 presentation. This call is being recorded. During the first part of the call, all participants will remain muted. Afterwards, there'll be a question and answer session. To ask a question, please press five star on your phone keypad. I now hand it over to speakers, CEO Rasmus Untidt, and CFO Dennis Nørgaard. Please go ahead.
Thank you. Welcome to this presentation of MT Højgaard Holding's 2025 results and our new strategy for the coming years. Thank you for taking the time to listen in. My name is Rasmus Untidt, and I'm CEO. CFO Dennis Nørgaard is with me on the call today. We'll answer questions from participants in the conference call when we have completed our presentation. Let's turn to slide 2, please. I'll begin with a few highlights for 2025, which was a busy and eventful year across the group. We consolidated the progress of recent years, and we're pleased to deliver on our promises and report financial results fully aligned with the outlook we provided a year ago. It's been a busy year in both business units, with a high activity level on existing projects and efforts to win new contracts and build a strong foundation for the coming years.
Our employees continue to generate value through their work, delivering stable production and good execution on the order book in 2025. The efforts resulted in solid operational results and revenue of DKK 10.2 billion, with an EBIT of DKK 429 million. This was on par with the operational performance in 2024, which was positively impacted by one-off income from land sales. We are pleased that the results in 2025 have enabled the board to propose a dividend payment of 10 DKK per share, corresponding to a payout ratio of 29%. Our business units secured a strong inflow of new contracts and long-term orders, and we have established a historical strong order portfolio for the coming years. We delivered this solid operational and financial performance while completing the transformation of the group initiated six years ago.
This included the integration of MT Højgaard Property Development into MT Højgaard Danmark, and completion of the winding up and sale of our international activities. We divested our share of it in Greenland in December, and expect closing in Q2 this year. In short, we have now created a sustainable business with a strong financial position and a sharp focus on the core competencies in our two business units. This positions us well for the next step as we launch our strategy for the next three years. We will build on the, we will build on the strong foundation and continue to generate value through a selective approach to projects and growth opportunities as we maintain strict focus on quality and financial discipline. We will present some key takeaways from the new strategy later.
For now, I'll hand over to Dennis for some more color on the 2025 performance. Slide 3, please. Thank you, Rasmus. I'll begin with a brief overview of the performance across our strategic focus areas, where both business units have built strong capabilities. We continued to pursue a more even distribution of revenue between these areas, and the balance improved in 2025. We shifted the balance from new builds towards civil engineering and infrastructure, which generated revenue growth of 38% in 2025 and accounted for 23% of group revenue. Our refurbishment business grew as well and now makes up 31% of total revenue. New builds remains our largest business area, with 43% of group revenue, but the graph on the left clearly shows the improved balance.
More than one-third of group revenue was generated in construction partnerships and collaboration projects across business areas again in 2025. This includes multi-year partnerships with large developers and projects with early involvement. In both cases, we contribute to development and design before construction starts. This approach increases visibility and helps us reduce risks and avoid conflicts. Each of these areas hold great prospects, and we see good opportunities to win new interesting projects in the coming years. After the high production activity in our civil engineering and infrastructure business, we look forward to take on new projects to accommodate the Danish government's I nfrastructure Plan 2035. Please turn to slide 4. MT Højgaard Danmark reported revenue of DKK 6.1 billion in 2025, based on good project activity and stable operations.
Still, this was a decline of 7%, as several large projects were completed during the year, such as the multi-stage port expansion in Rønne, displayed on this slide. At the same time, the order book holds large multi-year projects with modest revenue generation in the startup phase. We are looking very much forward to seeing revenue from these projects pick up in the coming years. Execution was strong across the projects in MT Højgaard Danmark, and profitability remained high, with an operating margin of 5.4%, despite the decline in revenue and lower contributions from joint ventures. Please note that the comparison year was impacted by one-off profit of DKK 56 million related to land sales.
The year was busy in terms of tender activity as well, and we were pleased to see the order intake grow by 20% to DKK 6 billion, with wins across our focus areas. The balanced production and order intake resulted in a relatively stable order book at DKK 6.7 billion.... Let's have a look at Enemærke & Petersen's performance on slide five. Revenue was up 1% to DKK 4.2 billion in Enemærke & Petersen in 2025. The development follows high activity across the business, with more than a third of revenue coming from construction partnerships and collaboration projects. After a tough first half impacted by challenges in a few projects, Enemærke & Petersen improved profitability in the second half and delivered an operating margin of 2.7% in 2025.
While operating profit was down by 5% for the full year, we were pleased to see continued progress in Q3 and Q4. Enemærke & Petersen is getting back on track, with improvements driven by a sharpened focus on project execution and good progress on the problematic projects. The order intake increased by 9%, with good performance by Raunstrup and Enemærke & Petersen. The solid traction was mainly driven by partnerships and projects with early involvement, but several contracts within subsidized housing and other areas were signed after tenders as well. We'll now move on to the results for the full year. Slide 6, please. I will focus on the full year figures and comment on Q4 during the Q&A session if there are any questions.
We delivered on our outlook for 2025 and consolidated a strong performance with revenue of DKK 10.2 billion and earnings from ongoing projects, largely on par with last year. Our business units showed great discipline and lifted the gross margin from 7.7 to 7.9% on a lower revenue base. This had a positive impact on EBIT, which came to a solid DKK 429 million, despite write-downs on joint ventures in the first half. This affected the comparison with 2024, which was also positively affected by profit from land sales. Net financial expenses were slightly lower at DKK 26 million in 2025, as interest expenses were down after repayment of the subordinated loan from Knud Højgaards Fond.
We paid DKK 240 million in 2025, and have since paid the loan of a total of DKK 400 million in full. Our continuing operations delivered a net profit of DKK 313 million, against DKK 357 million last year. The loss from discontinued operation was reduced to DKK 45 million after tax, after we completed the wind up of our international activities. This resulted in a 42% increase in net profit at DKK 268 million. Our cash flow from financing was impacted by the DKK 240 million repayment of the subordinated loan mentioned earlier, as well as the dividend payout of DKK 50 million. I'll get back to cash flow from operations on the next slide. Please turn to slide seven.
Overall, we were pleased to deliver solid performance across some of the key figures and ratios we've been tracking in recent years. The cash flow from operations increased to an inflow of DKK 181 million, from DKK 25 million last year. The improvement was mainly driven by discontinued operations and contributions from both business units. We remain focused on improving working capital in both business units. We maintained a solid return on invested capital of 41%, even though this was a decline from the very strong level last year. Capital allocation remains a key focus area for us, and we'll maintain our disciplined approach in the years ahead. Another key focus is our net interest-bearing debt. We improved the group's financial position in 2025, and increased the deposit by another DKK 25 million to DKK 329 million at year-end.
We are pleased that this sound financial position ensures greater flexibility and optionality in the years ahead. On this note, I'll hand back to Rasmus. Slide 8, please.
Thank you, Dennis. 2025 was a strong year in terms of order intake. Our business units won final unconditional orders worth DKK 10.3 billion. That's a 15% increase from last year and fueled by solid progress in MT Højgaard Danmark and Enemærke & Petersen. One of the largest contracts won in 2025 was the construction of the world's largest central warehouse for UNICEF in Nordhavn in Copenhagen. The building complex will cover 63,000 square meters when it's ready for operation by end of 2028. In the refurbishment area, Enemærke & Petersen secured a sizable assignment named Frichs Karré , through the construction partnership, Byggepartnerskabet &os. 30% of the business units order intake came from partnerships and collaboration projects in 2025.
Finally, we were pleased that MT Højgaard Danmark won a tender for the completion of 430 meters of crane area at the Omni Terminal in the Port of Aarhus as part of the plans to establish a new container terminal. The win underlines the team's strong competencies in marine engineering. Slide nine, please. The strong order intake contributed to our total order portfolio, which grew 24% and reached an all-time high of DKK 24.2 billion. This included final unconditional orders worth DKK 11.9 billion, widely spread across segments, project sizes, and geographies. Another DKK 8.5 billion were awarded, but not yet contracted orders. These are typically phase contracts, such as the new barracks for the Danish Defence, won in December and contracted in January.
Another example is the order for two new metro stations in Nordhavn, and finally, the second largest refurbishment assignment for Enemærke & Petersen in Folehaven in Valby, a suburb to Copenhagen. Future assignments and partnerships contributed with an estimated value of DKK 3.3 billion. Such assignments are part of the partnership scope, but they haven't been contracted yet. Joint ventures held orders worth DKK 1.05 billion at the end of the year. With this historically strong order portfolio, we can plan for the longer term and optimize the use of our resources. It provides a strong foundation and buffer going forward. While this is a good point of departure, our business units remain focused on strengthening their short-term order coverage for this year and the next.
This is important because a significant share of the order portfolio relates to multi-year contracts, where production is spread over a long period of three to five years or even longer. This is a good segue to the outlook. Please turn to slide 10. Some of you may recognize this slide and even think it's a reprint from last year. While I agree that we expect to generate stable revenue and operating profit at the same level as in 2025, there is one important point to keep in mind. I'll get back to that. Revenue is expected to reach the DKK 10 billion-DKK 10.5 billion range, as mentioned before. We have a strong order portfolio, but a number of large phase projects will generate limited revenue during 2026, as we gear up for production from 2027 and 2028.
The operating profit is projected between DKK 400 million and DKK 450 million, with a stable contribution from MT Højgaard Danmark and improvement in Enemærke & Petersen. The stable development in revenue and operating profit paves the way for the important point I mentioned earlier. We expect to improve net profit for the fifth year in a row and deliver value to our owners. This is a result of the quality of earnings and stability in our operations we have built over the last 6 years. The portfolio is lean, we have replaced debt with deposit, and we have taken the steps necessary to create a more efficient and disciplined business. In short, this represents our new baseline, and we remain committed to this plan, with continued focus on cash flow and return on invested capital in 2026 and beyond. Let's move on to slide 11.
We have made good progress and consolidated the strong results in recent years to establish a solid foundation for value creation going forward. Today, we are presenting our new strategy, and I want to provide a brief introduction to the phases we are working with. Firstly, we have been through a demanding turnaround process, stabilized our core business, and returned to profitability, with the ability to pay out dividends. We have completed the restructuring while generating profitable growth and building a historically high order portfolio. The second phase is where we find ourselves today. We are delivering on our promises and building a robust group. This consolidation will enable us to realize the potential of our core business and make targeted investments in the future sustained performance. The third phase focuses on leveraging the robustness and resilience of the core business to win market share.
Let's look at the overall financial ambitions in the new strategy on slide 12, please. This slide shows that we've strengthened the group's financial foundation in the previous strategy period with an average of 8.2% annual growth rate. EBIT was improved at a faster pace, with 12% on average. We have now established a sound baseline for our business, and we will continue building a track record of consistent project execution to deliver above-market growth and increase profitability throughout the new strategy period. As we continue this path, disciplined capital allocation and solid returns remain top priorities. Please turn to slide 13, please. Our new strategy is named We Continue to Build. It's not a reset, but a continuation and refinement of the strategy we have pursued since 2022.
We will remain focused on initiatives that will improve our performance in the four areas: financials, market, climate and environment, and people. Building on our resilience, expertise, and improved coordination across the group, we aim to maintain our leading position in new build and within partnerships and collaborations. At the same time, we will increase revenue in civil engineering and infrastructure and calibrate our refurbishment activities across business units. It is clear to us that the road ahead calls for continued development of our team through ongoing education and nurturing of talent in our business units. While we continue to pursue these targets, the solid financial position and robust state of our business put us in a position to explore inorganic growth opportunities and carefully evaluate any such options against our high-quality standards and the strict focus on disciplined financial management. This concludes our presentation for today.
Please turn to slide 14 and the Q&A session. Operator, please go ahead.
Thank you. We will now begin the question and answer session. If you wish to ask a question to the speakers, please press five star on your phone or use the Q&A on the stream. If you wish to be removed from the queue, you can press five star again. We will now take a short pause while questions are being registered. And it was five star to ask a question. As no one has lined up for questions in the queue, I'll now hand the call back to Rasmus.
Thank you. Thank you for listening in today. If you have any questions after the session, please feel free to get in touch. I wish you all a nice day. Thank you.