Cadeler A/S(CDLR) - 2025 Q1 - Quarterly Report

Financial Performance Overview The Group achieved substantial revenue and profitability growth in Q1 2025, driven by fleet expansion and improved operational efficiency, alongside significant cash flow changes Income Statement Highlights The Group achieved significant revenue and profitability growth in Q1 2025, driven by fleet expansion and higher vessel utilization, transitioning from a net loss to a profit | Metric | Q1 2025 (EUR million) | Q1 2024 (EUR million) | Change (EUR million) | Change (%) | | :---------------- | :-------------------- | :-------------------- | :------------------- | :--------- | | Revenue | 65 | 19 | +46 | +242.1% | | Cost of sales | 45 | 27 | +18 | +66.7% | | EBITDA | 24 | (10) | +34 | N/A | | Result (Profit/Loss) | 2 | (21) | +23 | N/A | - The increase in revenue and profit was driven by the expansion of the fleet (Wind Peak in Aug 2024, Wind Maker in Jan 2025) and higher vessel utilisation[2][3][6] - Vessel utilisation rate for the seven operating vessels increased to 55.3% in Q1 2025, up from 17.3% for four operating vessels in Q1 2024[4] Cash Flow Highlights Operating cash flow improved significantly, while investing activities substantially increased due to new vessel instalments, and financing activities provided a large cash inflow from new borrowings | Metric | Q1 2025 (EUR million) | Q1 2024 (EUR million) | Change (EUR million) | Change (%) | | :-------------------------- | :-------------------- | :-------------------- | :------------------- | :--------- | | Net cash flow from operating activities | 20 | 13 | +7 | +53.8% | | Net cash flow used in investing activities | (467) | (102) | (365) | +357.8% | | Net cash flow from financing activities | 482 | 201 | +281 | +139.8% | - Increased investing activities were primarily due to final instalments for Wind Maker and Wind Pace vessels delivered in Q1 2025[8] - Increased financing activities were driven by EUR 495 million in proceeds from borrowings, partially offset by capital raised in Q1 2024[9] Key Financial and Operational Metrics (Summary Table) This section provides a consolidated overview of key financial and operational metrics for Q1 2025, highlighting significant improvements across revenue, profitability, cash flow, and operational efficiency | Key Figures (EUR'000) | Q1 2025 | Q1 2024 | | :-------------------------------- | :------ | :------ | | Revenue | 65,474 | 19,063 | | Cost of sales | (44,558)| (26,979)| | Gross profit / (loss) | 20,916 | (7,916) | | Operating profit/(loss) | 4,830 | (20,093)| | Profit/(loss) for the period | 1,798 | (20,793)| | Cash flow provided by operating activities | 20,387 | 13,139 | | Cash flow used in investing activities | (466,786)| (101,867)| | Cash flow provided by financing activities | 482,041 | 200,689 | | Net increase in cash and cash equivalents | 35,642 | 111,961 | | Earnings per share (EPS), EUR | 0.01 | (0.06) | | Diluted earnings per share (diluted EPS), EUR | 0.01 | (0.06) | | Contracted days (no. of days) | 284 | 63 | | Utilisation (%) | 55.3% | 17.3% | Capital and Assets Management The Group's assets significantly increased due to new vessel investments, alongside active financing management and a strategic change in functional currency Balance Sheet Highlights Total assets significantly increased due to new vessel investments, while equity slightly decreased, primarily driven by hedging adjustments | Key Figures (EUR'000) | 31 March 2025 | 31 December 2024 | Change (EUR'000) | Change (%) | | :-------------------- | :------------ | :--------------- | :--------------- | :--------- | | Total assets | 2,463,647 | 1,937,016 | +526,631 | +27.2% | | Non-current assets | 2,221,655 | 1,748,400 | +473,255 | +27.1% | | Total liabilities | 1,238,109 | 703,122 | +534,987 | +76.1% | | Equity | 1,225,538 | 1,233,894 | (8,356) | (0.7%) | | Cash and cash equivalents | 94,106 | 58,464 | +35,642 | +61.0% | | Equity ratio (%) | 49.7% | 63.7% | (14.0) pp | N/A | - The increase in total assets was primarily driven by a EUR 476 million increase in property, plant and equipment due to newbuild programs, including Wind Maker (M-Class) and Wind Pace (P-Class)[15] - The decrease in equity was mainly due to a EUR 7 million loss from hedge adjustments and EUR 4 million in related costs, partially offset by a EUR 2 million profit and EUR 1 million in share-based payments[16] Financing Activities and Vessel Deliveries The Group actively managed financing facilities and expanded its fleet with the delivery of two new vessels, Wind Maker and Wind Pace, in Q1 2025 - Utilized EUR 40 million under the Green Corporate Facility in January and February 2025[22] - Took delivery of Wind Maker (sixth vessel) on January 31, 2025, and drew down half of the M-Class Facility (approx. EUR 212 million) for the final instalment[23] - Took delivery of Wind Pace (seventh vessel, second P-Class) on March 26, 2025, and utilized EUR 211 million under the P-Class Facility for its final instalment[24] - Signed the A-Class Facility for up to EUR 525 million on March 21, 2025, to finance the first two of three newbuild A-Class Vessels, with effectiveness contingent on Sinosure confirmation by May 31, 2025[25] | EUR Millions | Committed | Utilised | Repayments | Unutilised | | :-------------------------- | :-------- | :------- | :--------- | :--------- | | Secured | | | | | | Total Green Corporate Facility | 497 | (9) | - | 153 | | P-Class Facility¹ | 421 | (9) | - | - | | M-Class Facility I & II | 212 | - | - | 208 | | A-Class Facility I & II | - | - | - | 525 | | Unsecured | | | | | | HoldCo Facility | 125 | - | - | - | | Total (excluding Guarantee facility) | 1,100 | (18) | - | 841 | Functional Currency Change Effective January 1, 2025, former Eneti Group entities changed their functional currency from USD to EUR, reflecting a shift in the primary economic environment post-acquisition - The change from USD to EUR as the functional currency for former Eneti Group entities was driven by Cadeler's acquisition and subsequent changes in financing, organization, and activities, making EUR the primary economic environment[17] Order Backlog Cadeler maintains a robust order backlog, significantly bolstered by new contracts signed in Q1 2025, ensuring substantial future work for its expanding fleet Order Backlog Details Cadeler's order backlog remains robust, with significant contracts signed in Q1 2025, ensuring substantial work for its fleet, particularly for newbuild vessels - The Group's order backlog amounted to EUR 2,487 million as of the reporting date (March 31, 2025)[30] | EUR million | Within 1 year | After 1 year | Total | | :-------------------------------------- | :------------ | :----------- | :---- | | Contract backlog as of 31 March 2025 | | | | | Firm | 539 | 1,484 | 2,023 | | Subject to exercise of counterparty options (non-contingent) | 40 | 192 | 232 | | Subject to exercise of counterparty options (contingent) | 40 | 192 | 232 | | Total¹ | 619 | 1,868 | 2,487 | - As of March 31, 2025, 94% of the contract backlog (EUR 2,342 million) related to projects with a positive final investment decision (FID); as of the earnings release date, 100% of the backlog related to projects with positive FID[31][32] - Notable contracts signed since January 1, 2025, include two firm contracts for Wind Mover (up to EUR 75 million) and a firm contract for Wind Pace's first deployment in the US (EUR 67-75 million)[33] - A notable Vessel Reservation Agreement (VRA) was signed with Ocean Winds for the BC-Wind offshore wind farm, with a potential contract value of EUR 48-56 million, though VRAs are not included in the contract backlog[29] Outlook 2025 The Group's 2025 guidance for revenue and EBITDA remains unchanged, reflecting stable expectations for the upcoming year 2025 Guidance The Group's 2025 guidance for revenue and EBITDA remains unchanged, with revenue expected between EUR 485 million and EUR 525 million, and EBITDA between EUR 278 million and EUR 318 million | Metric | 2025 Guidance (EUR million) | | :------- | :-------------------------- | | Revenue | 485 - 525 | | EBITDA | 278 - 318 | Subsequent Events A preferred supplier agreement was terminated in May 2025, entitling the company to termination fees without impacting the disclosed contract backlog Preferred Supplier Agreement Termination Cadeler received notice in May 2025 terminating a preferred supplier agreement, entitling the company to termination fees without impacting the disclosed contract backlog - Cadeler received notice in May 2025 terminating a preferred supplier agreement (PSA) disclosed on July 15, 2024[11] - Cadeler is entitled to receive termination fees as a result of this termination[11] - The termination has no impact on Cadeler's disclosed contract backlog, as vessel reservation agreements like the PSA are not included[11] - Cadeler is assessing the positive impact of the termination fees on its 2025 revenue and EBITDA guidance[11] UK Re-Domiciliation The planned re-domiciliation to the United Kingdom has been delayed to 2026 due to competing strategic priorities, though the company still believes in its strategic benefits Re-Domiciliation Delay Cadeler has delayed its planned re-domiciliation to the United Kingdom from H1 2025 to 2026 due to competing strategic priorities, while still believing it will enhance its strategic position - Cadeler has delayed its contemplated re-domiciliation to the United Kingdom from H1 2025 to 2026[12] - The delay is attributed to competing strategic priorities[12] - The company still believes that re-domiciliation to the UK would enhance its strategic position[12] Interim Condensed Consolidated Financial Statements This section presents the interim condensed consolidated financial statements, detailing the Group's profit or loss, balance sheet, changes in equity, and cash flows for the period Statement of Profit or Loss and Other Comprehensive Income The statement details a significant turnaround from a loss in Q1 2024 to a profit in Q1 2025, driven by increased revenue, despite a substantial loss in other comprehensive income | EUR'000 | Q1 2025 | Q1 2024 | | :------------------------------------------------------------------------------------------------ | :------ | :------ | | Revenue | 65,474 | 19,063 | | Cost of sales | (44,558)| (26,979)| | Gross profit/(loss) | 20,916 | (7,916) | | Operating profit/(loss) | 4,830 | (20,093)| | Profit/(loss) for the period | 1,798 | (20,793)| | Basic Earnings per share (EUR per share) | 0.01 | (0.06) | | Diluted Earnings per share (EUR per share) | 0.01 | (0.06) | | Other comprehensive (loss)/income after tax | (10,773)| 24,222 | | Total comprehensive (loss)/income for the period, net of tax | (8,975) | 3,429 | Balance Sheet The balance sheet as of March 31, 2025, reflects a substantial increase in total assets and liabilities, primarily in property, plant and equipment and debt, while total equity remained relatively stable | EUR'000 | 31 March 2025 | 31 December 2024 | | :-------------------------- | :------------ | :--------------- | | Intangible assets | 18,644 | 18,190 | | Property, plant and equipment | 2,188,349 | 1,712,266 | | Total non-current assets | 2,221,655 | 1,748,400 | | Total current assets | 241,992 | 188,616 | | Total assets | 2,463,647 | 1,937,016 | | Total equity | 1,225,538 | 1,233,894 | | Debt to credit institutions (Non-current) | 995,471 | 539,854 | | Total non-current liabilities | 1,035,106 | 579,475 | | Total current liabilities | 203,003 | 123,647 | | Total liabilities | 1,238,109 | 703,122 | | Total equity and liabilities | 2,463,647 | 1,937,016 | Statement of Changes in Equity The statement details changes in equity for Q1 2025 and Q1 2024, showing a slight decrease in Q1 2025 due to comprehensive losses, contrasting with a capital increase and positive income in Q1 2024 | EUR'000 | At 1 January 2025 | Profit for the period | Other comprehensive income for the period | Total comprehensive profit for the period | Share-based payments | End of 31 March 2025 | | :-------------------------------- | :---------------- | :-------------------- | :---------------------------------------- | :---------------------------------------- | :------------------- | :------------------- | | Total Equity | 1,233,894 | 1,798 | (10,773) | (8,975) | 619 | 1,225,538 | | EUR'000 | At 1 January 2024 | Profit for the period | Other comprehensive income for the period | Total comprehensive profit for the period | Capital increase Feb 2024 | Costs incurred in connection with Feb 2024 capital increase | Share-based payments | End of 31 March 2024 | | :-------------------------------- | :---------------- | :-------------------- | :---------------------------------------- | :---------------------------------------- | :------------------------ | :---------------------------------------------------------- | :------------------- | :------------------- | | Total Equity | 959,041 | (20,793) | 24,222 | 3,429 | 154,868 | (2,475) | 272 | 1,115,135 | Statement of Cash Flows The cash flow statement shows positive net cash from operating activities, significantly increased cash used in investing activities, and substantial cash inflow from financing activities | EUR'000 | Q1 2025 | Q1 2024 | | :---------------------------------------- | :------ | :------ | | Net cash provided by operating activities | 20,387 | 13,139 | | Net cash used in investing activities | (466,786)| (101,867)| | Net cash provided by financing activities | 482,041 | 200,689 | | Net increase in cash and cash equivalents | 35,642 | 111,961 | | Cash and cash equivalents at end of the period | 94,106 | 209,130 | - Investing activities included EUR 466.2 million in additions to property, plant and equipment in Q1 2025, significantly higher than EUR 101.9 million in Q1 2024[40] - Financing activities in Q1 2025 were boosted by EUR 494.7 million in proceeds from borrowing (net of bank fees), compared to EUR 50 million in Q1 2024[40] Forward-Looking Statements This section provides a standard disclaimer regarding forward-looking statements, highlighting inherent risks and the company's policy on updating such information Disclaimer on Forward-Looking Information This section provides a standard disclaimer for forward-looking statements, emphasizing inherent risks, the company's non-obligation to update, and advising against undue reliance on third-party information - Forward-looking statements concern future circumstances and results, identified by words like 'believes', 'expects', 'predicts', and are subject to risks, uncertainties, and other factors that may cause actual events to differ materially[43] - Neither the Company nor its affiliates provide assurance that assumptions underlying forward-looking statements are error-free or accept responsibility for the future accuracy of opinions or forecasted developments[44] - The Company assumes no obligation to update any forward-looking statements, except as required by law[45] - Information obtained from third parties has not been independently investigated for accuracy or completeness, and no reliance should be placed on such information[46][48] Alternative Performance Measures This section defines and reconciles alternative performance measures, specifically EBITDA, used to supplement IFRS financial information and provide greater transparency Non-IFRS Financial Measures The Group uses non-IFRS measures, specifically EBITDA, to supplement IFRS financial information, providing greater transparency into underlying performance without substituting IFRS measures - The Group uses non-IFRS metrics, including EBITDA, to supplement IFRS financial information and measure performance against prior periods[49] - These non-IFRS measures are not standardized and may not be comparable to similar measures of other companies, and should not be viewed as a substitute for IFRS measures[49][50] - EBITDA is defined as Earnings before interest, tax, finance income/costs, and depreciation and amortisation[51] | EUR'000 | Q1 2025 | Q1 2024 | | :------------------------------------------------ | :------ | :------ | | Operating profit or loss as reported in the statement of profit | 4,830 | (20,093)| | Right-of-use asset amortisation | 283 | 261 | | Depreciation and amortisation | 18,541 | 9,772 | | EBITDA | 23,654| (10,060)|