Summary of Cadeler Q2 2026 Earnings Call

1Key Financial Results and Metrics

Q2 Revenue: EUR 282.8 million, up 432% year-on-year (adjusted for a large termination fee in the previous year).

EBITDA: EUR 160.6 million, an increase of 106% compared to the previous year.

Net Profit: EUR 95 million, reflecting a 73% increase year-on-year.

Backlog: Stands at EUR 2.5 billion, up 23% from the previous year, with 77% of this backlog having reached Final Investment Decision (FID).

Fleet Utilization: Increased to 85% from 76% year-on-year, with an adjusted utilization rate of 91%.

Market Capitalization: Approximately EUR 2 billion.

2Strategic Updates and Business Highlights

Newbuild Program: Successfully delivered the second A-class vessel, Wind Ace, which is now mobilizing for projects. The company has also signed contracts for two new T-class vessels, with deliveries scheduled for 2030 and 2031.

Acquisition of Menck: A strategic move to enhance Cadeler's capabilities in offshore foundation installation, expected to improve customer offerings and operational efficiencies.

Project Execution: Continued strong performance on various projects, including Hornsea 3 and multiple installations in the U.S. and Asia, with a focus on improving efficiency and safety.

Technological Advancements: Initiatives to integrate AI for data analysis and operational efficiency, leveraging data from Menck's extensive foundation installation history.

3Forward Guidance and Outlook

2026 Revenue Guidance: Expected to be in the range of EUR 854 million to EUR 944 million, with EBITDA projected between EUR 420 million and EUR 510 million.

Market Demand: Anticipated strong demand for offshore wind projects, particularly from 2029 onward, driven by energy security concerns and favorable auction results in Europe.

Operational Strategy: Focus on converting preferred supplier agreements into firm contracts, with a strong pipeline of projects anticipated for 2027 and beyond.

4Challenges and Points of Concern

Increased Operating Costs: Operating expenses rose due to the addition of three new vessels, impacting profitability despite revenue growth.

Depreciation: Notable increase in depreciation expenses, which may affect future earnings as more vessels are delivered.

Market Competition: The landscape remains competitive, with concerns about the availability of efficient vessels and equipment, which could impact project timelines and costs.

5Notable Q&A Insights

Utilization Expectations: Management expects strong vessel utilization to continue through the remainder of 2026, with ongoing projects supporting this outlook.

Hornsea 3 Contributions: Progress on Hornsea 3 is on track, with turbine installation expected to commence in Q4 2026.

Future Projects: Management indicated that additional projects are in the pipeline for 2028, with extensions on current projects also likely.

Investment Strategy: The company emphasized a careful approach to capital allocation, with a focus on attractive IRR for new investments, particularly in light of the Menck acquisition and new vessel orders. This summary encapsulates Cadeler's strong financial performance, strategic initiatives, and optimistic outlook while acknowledging operational challenges and competitive pressures in the market.