Cadeler A/S(US:CDLR)2025-08-26 13:02Financial Data and Key Metrics Changes - For Q2 2025, revenue reached EUR 233.1 million, showing substantial growth despite being impacted by termination fees from the Horn C4 project [17] - EBITDA increased significantly from EUR 32 million to EUR 189 million year-over-year, indicating strong operational performance [21] - The company maintains a solid balance sheet with a market cap of EUR 1.7 billion and an adjusted utilization rate of 94.1% for Q2 [18][19] Business Line Data and Key Metrics Changes - The backlog remains stable at EUR 2.5 billion, with 97% of projects having final investment decisions [12][13] - The Windkeeper vessel is highlighted as a key asset, with a long-term contract secured with Vestas for operations and maintenance services [6][10] - The company is actively working on multiple projects, including Revolution Sunrise and Revolution Wind, although the latter is currently halted [11][66] Market Data and Key Metrics Changes - The U.S. market constitutes less than 10% of the total backlog, indicating a focus on international projects [11] - The company is experiencing strong demand for operations and maintenance services, particularly for larger turbines [5][50] Company Strategy and Development Direction - The company is focused on expanding its fleet and enhancing operational capabilities, particularly through the NexTra service concept [5][52] - There is a strategic emphasis on sustainability, including biofuel testing and decarbonization efforts [36][56] - The company aims to maintain a resilient business model while adapting to market recalibrations and emerging opportunities [41][58] Management's Comments on Operating Environment and Future Outlook - Management acknowledges a period of market recalibration but remains optimistic about long-term growth in offshore wind and operations and maintenance sectors [37][41] - The company expects improved conditions and policy support in key markets, which could enhance project execution timelines [39][40] - Despite challenges, management believes in the strength of their fleet and the ability to meet client demands effectively [42][58] Other Important Information - The company is actively engaged in discussions with banks for financing future projects, indicating strong interest from financial institutions [26][28] - The full-year outlook for 2025 has been adjusted to a revenue range of EUR 588 million to EUR 628 million, with EBITDA projected between EUR 381 million and EUR 421 million [30] Q&A Session Summary Question: Impact of halted Revolution Wind project - Management stated that they are contractually well protected and are in dialogue with clients regarding the halted project, referencing a similar situation with Empire that was resolved [64][66] Question: CapEx related to Windkeeper - It was confirmed that the majority of Q2 CapEx was related to Windkeeper, with no unplanned expenditures [70] Question: Upgrades on Windkeeper - Upgrades include adding a new auxiliary crane, a bow thruster for improved operations, and general accommodation enhancements to meet client expectations [72][73] Question: Availability of similar vessels in the market - Management indicated that Windkeeper is unique and that upgrading other Chinese vessels for European operations would be challenging [75][76] Question: Alternative work scopes amid stop order - Management clarified that clients do not wish for vessels to be repurposed for other projects while awaiting clarity on the stop order [81][82] Question: Stability of termination fees in contracts - Management expressed that termination fees in contracts remain stable, despite recent trends in the industry [83]