CDLR — Cadeler A/S

Summary of CDLR Q1 2026 Earnings Call

1. Key Financial Results and Metrics

• Revenue: EUR 124.7 million, up from EUR 65.5 million year-over-year.
• EBITDA: EUR 47 million, compared to EUR 23.7 million last year.
• Net Profit: Loss of EUR 7 million, primarily due to increased interest expenses related to bank facilities.
• Equity Ratio: Improved to 47.6% from 44%.
• Adjusted Vessel Utilization: 77.7%, considered satisfactory, with adjustments for vessel transfers and planned dry docks.
• Backlog: Strong backlog of EUR 2.7 billion, with 82% of it having reached Final Investment Decision (FID).

2. Strategic Updates and Business Highlights

• The company is on track with its newbuild program, with the second A-class vessel expected to deliver soon and the third scheduled for next year.
• Successful mobilization of vessels Wind Ally and Wind Orca, with significant progress on the Hornsea 3 project, including the installation of monopile foundations.
• The company executed a private placement raising EUR 175 million to fund additional jack-ups and a scour protection vessel, enhancing its operational capabilities.
• Cadeler is focusing on expanding its fleet to meet anticipated demand in the offshore wind sector, particularly in the U.S., Europe, and APAC.

3. Forward Guidance and Outlook

• The company maintains a positive outlook for 2026 and 2027, expecting strong demand driven by geopolitical factors and a shift towards locally produced energy.
• Anticipated revenue growth in Q2, Q3, and Q4, following a historically weaker Q1.
• Continued focus on securing contracts and expanding backlog, with potential projects in negotiation for 2028 and beyond.

4. Bad News, Challenges, or Points of Concern

• Net profit remains negative due to high interest expenses, which are expected to continue impacting profitability as more vessels are operational.
• The company noted that revenue recognition for certain projects, such as Wind Ally, is delayed until installation begins, which may affect short-term financial performance.
• Increased operational costs due to fleet expansion and mobilization efforts, which could pressure margins if not managed effectively.

5. Notable Q&A Insights

• Management confirmed expectations for increased utilization in the upcoming quarters, aligning with historical trends.
• Clarified that significant CapEx is expected in Q3 for the Wind Ace and Wind Apex vessels, with additional costs associated with early delivery of Wind Apex being negotiated with clients.
• Management emphasized the importance of maintaining strong client relationships and proactive engagement to mitigate project risks and ensure successful execution.

Overall, Cadeler's Q1 2026 results reflect strong revenue growth and a solid backlog, positioning the company well for future growth despite some challenges related to profitability and operational costs.