CDLR — Cadeler A/S

Summary of Cadeler Q4 2025 Earnings Call

1. Key Financial Results and Metrics

• Revenue: EUR 620 million for the year, up from EUR 249 million in 2024; Q4 revenue was EUR 167 million, an increase of EUR 82 million year-over-year.
• EBITDA: EUR 425 million for the year, compared to EUR 126 million in 2024; Q4 EBITDA was EUR 104 million.
• Net Profit: EUR 280 million, up from EUR 65 million in the previous year.
• Utilization Rate: Adjusted utilization at 88.9% for the year, compared to 75% in 2024.
• Contract Backlog: EUR 2.8 billion, with 80% having reached Final Investment Decision (FID).
• Equity Ratio: 44%, a decrease from the previous year but expected to stabilize.

2. Strategic Updates and Business Highlights

• Fleet Expansion: Four newbuild vessels were delivered on time and on budget, including the Wind Keeper, which is now operational under a 5.5-year contract.
• Project Execution: Significant progress on the Hornsea 3 project, with increased revenue potential due to changes in project timelines and requirements from clients.
• Market Positioning: Cadeler is transitioning from a charter-based model to a more integrated project delivery model, enhancing service offerings and revenue potential.
• Nexra Platform: Growth in Operations and Maintenance (O&M) services, with 1/5 of total revenues coming from O&M, indicating a diversification of income streams.

3. Forward Guidance and Outlook

• 2026 Guidance: Expected revenue between EUR 854 million and EUR 944 million, with EBITDA between EUR 420 million and EUR 510 million.
• Market Confidence: Positive outlook for 2027 and beyond, with Cadeler fully booked for 2027 and strong commercial opportunities in the pipeline for 2028 and beyond.
• Long-Term Market Trends: Anticipation of increased demand for offshore wind, particularly in Europe and Asia, supported by government targets and private capital investments.

4. Bad News, Challenges, or Points of Concern

• Transition Year: 2026 is viewed as a transition year for the Wind Zaratan, which may affect financial performance.
• Revenue Timing: Revenue from the Hornsea 3 project is expected to be back-half weighted, with some revenue pushed into 2027 due to delays in monopile deliveries.
• Financial Expenses: Increased financial expenses anticipated as capitalized costs decrease with new vessel deliveries, impacting net profit in the near term.

5. Notable Q&A Insights

• Vessel Utilization: The decision to deliver the Wind Apex early for turbine installation was based on client demand and potential for future contracts.
• Market Dynamics: Cadeler's improved outlook for 2028 is attributed to securing a preferred supplier agreement and overall progress in project negotiations.
• Capital Allocation: Future capital allocation will focus on deleveraging, maintaining industry position, and returning capital to shareholders, with all three areas being prioritized simultaneously.
• O&M Strategy: There is a strategic balance between long-term contracts and spot market opportunities in O&M, with a focus on maximizing revenue based on project economics.

This summary encapsulates Cadeler's financial performance, strategic initiatives, future outlook, challenges, and insights from the Q&A session, providing a comprehensive overview of the company's current status and future direction.