Cadeler A/S(CDLR) - 2025 Q3 - Earnings Call Transcript

Financial Data and Key Metrics Changes - The company reported revenue of EUR 154.3 million for Q3 2025, reflecting strong performance and high utilization [12][13] - EBITDA for the quarter was EUR 109.1 million, more than double compared to the previous year [14] - Cash flow from operating activities reached EUR 214 million, indicating robust financial health [12] - The backlog stands at a record high of almost EUR 2.9 billion, with 78% having reached Final Investment Decision (FID) [8][29] Business Line Data and Key Metrics Changes - The company has three new vessels in operation, contributing to high utilization rates of 92% [4][12] - The Wind Keeper has completed an O&M campaign in Asia and is preparing for future assignments [5] - The Wind Ally is mobilizing for the Hornsea 3 Foundation TNI project, showcasing strong operational execution [4][6] Market Data and Key Metrics Changes - The company is experiencing strong demand across key markets, including the U.S., Europe, and Asia [4][6] - There is a significant backlog in the U.S. and Asia, with a large foundation project scheduled for execution in 2029 [6][8] - The company anticipates increased competition in 2027 and 2028, with expected lower utilization during these years [8][29] Company Strategy and Development Direction - The company aims to secure more foundation work and BTG projects while continuing to build its O&M vehicle, Nexra [6][8] - The focus is on capturing the best projects to maintain high utilization rates for its fleet [23][24] - The company is actively participating in tenders across all years, emphasizing the importance of delivering value to clients [25][27] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the number of projects being bid and the willingness of clients to commit to these projects [32] - There is an expectation of vessel undersupply towards the end of the decade, driven by strong demand for offshore wind projects [22][28] - The company is preparing for a busy short-term market while anticipating a more balanced work environment in the middle years [28][29] Other Important Information - The company has maintained strong support from banks for its financing needs [16][17] - The Wind Keeper bridge facility has been replaced with a syndicated facility, enhancing financial stability [17] - The company is on track with its CapEx program, with significant investments planned for upcoming vessel deliveries [15][39] Q&A Session Summary Question: Confidence level for 2029 and 2030 volumes - Confidence is based on the number of projects being bid and clients' willingness to commit to these bids, with expectations for significant project approvals [32][33] Question: Positioning for 2029 and 2030 with a large fleet - Clients value the predictability and safety of supply, especially in uncertain years like 2028, where project execution reliability is crucial [34] Question: Pricing context for 2026, 2027, and 2028 - Pricing remains solid for 2026 and 2027, but there is pressure in 2028 due to increased competition and more available companies for fewer projects [35] Question: Scope of Hornsea 3 and timing for monopole installation - The company is on plan for Hornsea 3, but specific timing for the first monopole installation cannot be disclosed due to client confidentiality [41][42] Question: Split of EUR 500 million contract for TNI services and installation - The company cannot disclose the percentage split of the contract as it is part of an auction for the client [46] Question: Segment reporting for foundations and turbine services - There are no plans to implement segment reporting for different service lines at this time [47] Question: Expectations on supply and demand balance towards the end of the decade - The company believes that analysts may be underestimating the supply side, and there is confidence in the demand growth for 2029 and 2030 [48][49]