Half Year 2026 Cadeler A/S Earnings Call Transcript
Key Points
- Revenue and EBITDA more than doubled year-on-year in H1 2026, driven by strong fleet utilization and project execution.
- Fleet utilization improved to 85% in H1 2026 from 76% in the prior year, with Q2 utilization reaching 90.9%.
- Backlog remains robust at EUR2.5 billion, providing strong earnings visibility, with additional preferred supply agreements and vessel reservation agreements for future projects.
- Successful delivery of the second A-Class vessel (Wind Ace) ahead of schedule and on budget, enhancing fleet capacity and flexibility.
- Strategic acquisition of MENC strengthens foundation installation capabilities, adds significant data assets, and expands customer offering, with positive client and peer feedback.
- Ordered two new T-Class vessels with a back-ended payment schedule, reducing near-term capital outlay and securing future capacity.
- Strong commercial momentum with increased client activity for projects starting in 2029-2032, supported by favorable market trends and energy security concerns.
- O&M business (Nexra) is gaining traction with over 230 vessel days and a preferred supplier agreement for a long-term O&M contract.
- Solid balance sheet with EUR1.8 billion equity and no need for a capital increase to fund the MENC acquisition or newbuild program.
- Continued focus on technology and AI to improve project efficiency and data-driven decision-making, leveraging 50 million data points from pile driving.
- Cost of sales increased by EUR93 million in H1 2026 due to operating costs of three additional vessels, impacting profitability.
- SG&A expenses rose by EUR7 million in Q2 and EUR9 million in H1, reflecting scaling of back-office operations.
- Vessel OpEx per day is above previous levels, expected to be around or just below EUR40,000, indicating higher operating costs.
- The T-Class vessel order involves significant future capital expenditure (EUR805 million), with major installments due in 2030 and 2031, though back-ended.
- The MENC acquisition adds integration risks and requires effective governance to ensure smooth operations and client confidence.
- Market outlook for 2028 and first half of 2029 remains uncertain, with a noted gap in project awards, though management expresses confidence in baseline.
- Depreciation is expected to increase as new vessels are delivered, impacting future earnings.
- The company faces intense competition for shipyard capacity, making future newbuild orders challenging and potentially limiting growth options.
- Geopolitical tensions and importation issues for fossil fuels could create market volatility, though they also boost renewable energy demand.
- The acquisition and newbuild program require careful capital allocation to maintain financial discipline and meet return hurdles.
Good morning and welcome to Cadeler's H1 2026 earnings presentation. Presenting today are Mikael Glirup, Chief Executive Officer and Peter Brogaard, Chief Financial Officer. Please be reminded that the presenter's remarks today will include forward-looking statements. Actual results may differ materially from those contemplated.
The risks and uncertainties that could cause Cadeler's results to differ materially from today's forward-looking statements include those detailed in Cadeler's annual report on Form 20-F on file with the United States Securities and Exchange Commission. Any forward-looking statements made this morning are based on assumptions as of today and Cadeler undertakes no obligation to update these statements as a result of new information or future events.
This morning's presentation includes both IRFS and certain non-IRFS financial measures. A reconciliation of non-IRFS financial measures to the nearest IRFS equivalent is provided in Cadeler's annual report. The annual report and today's earning presentation are available on Cadeler's website at cadeler.com/investor.
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