Key financial figures for the AVK Group 2024/2025
During the year, AVK acquired Frese Metal- og Stålstøberi A/S, a foundry based in Slagelse, Denmark. The foundry has been a long-term supplier of castings to AVK Tooling and the acquisition secures an integrated supply chain for components within the marine sector.
Development of key financial figures
Net sales reached DKK 9.4 billion in 2024/25, representing a growth of 4.1% compared to the previous year. The acquired company had only a minor impact and the impact of changes in exchange rates in the Group consolidation, the real organic growth rate was 4,4%.
The water segments showed strong performance with 6.8% growth, driven by increased activity in project markets and solid growth across most regions, particularly India, Southeast Asia, the Middle East, North America and several Continental European markets. Industrial segments faced challenging market conditions in several areas, resulting in a 4.2% decline in sales. With the establishment of our new business unit AVK Water Solutions, which is a merger of our former business units AVK Water and AVK Industrial, the Group aims to broaden its product offering and strengthen sales efforts, expecting positive development in the coming year.
Advanced Manufacturing segments achieved 10.6% growth, supported by robust sales of rubber components and positive developments in wind power and recycled plastic pallets.
Operating profit amounted to DKK 993 million, an improvement of 14.0% compared to last year. The profit margin increased from 9.7% to 10.6%, driven by continuous operational improvements across the Group, including lean initiatives, automation, digitalisation and product development investments.
Investment levels remained high, primarily focused on capacity expansion, factory upgrades and automation across multiple countries. Significant investments were also made in product development, IT platform upgrades and energy-saving and green energy projects to reduce the Group’s CO₂ footprint. Investments in fixed assets totaled DKK 594 million and this figure is expected to rise further next year, with major investments continuing toward establishing a fully local supply chain in the United States.
Expected AVK Group development
AVK will maintain its focus on expanding business across the various markets and segments we serve. For the coming year, growth is expected to be around 10%, driven by both organic development and the addition of a new joint venture in the Nordics with Ulefos Holding Group, as well as the acquisition of a company specialising in triple offset valves in Italy, both effective from 1 January 2026.
Although market conditions in Europe, North America and China are anticipated to remain subdued, the current order book, continued strong demand in the Middle East and significant improvements in sales for Flonidan and AVK Tooling - smart gas meters for the Dutch market and wind power components respectively - support expectations for improved organic growth in the coming year. AVK has also strengthened its position in project markets such as dams and reservoirs, irrigation and wastewater treatment, which will further contribute to growth in the years ahead. Operating profit is expected to increase in line with sales growth.
Reducing CO₂ emissions and delivering sustainable solutions remain high on the global political agenda and AVK is fully committed to its responsibility and potential contribution. Our products already play a key role in lowering CO₂ footprints by reducing water loss (and thereby energy consumption) and through recycling of materials for both metal and plastic products. The growing focus on sustainability is regarded as a long-term growth driver for the Group.
Smart solutions that enable improved management and control of water supply and irrigation systems will become increasingly important in our product and service offerings, helping to minimise water leakage and associated energy use.
Production and sales of pallets made from recycled plastic waste are expected to maintain strong growth, driven by companies seeking to recycle their own plastic waste and support sustainability through products based on recycled materials.
Digital solutions will play an ever-larger role in how the Group interacts with and serves customers, while also contributing to supply chain optimisation and internal process efficiency.
LEAN tools continue to be widely implemented across the Group to enhance delivery performance, operating profit and cash flow.
Overall, AVK anticipates a positive development for the Group in the coming year.
Main activities
AVK operates through two primary business units: AVK Water Solutions and AVK Advanced Manufacturing.
Over the past year, the former units AVK Water and AVK Industrial were merged into AVK Water Solutions to create stronger synergies in product offerings and market approach. AVK Water Solutions comprises companies that design, manufacture and deliver high-quality valves and integrated solutions for a wide range of applications within water supply and industrial water-based sectors.
AVK Advanced Manufacturing includes companies producing components and products in metal, rubber and plastic for various industrial applications.
Production and sales are managed through AVK Group’s network of more than 100 companies in 40 countries across Europe, the Middle East, North and South Amross Europe, the Middle East, North and South America, Australia, Asia, and Africa.
