Cadeler A/S(US:CDLR)2025-11-20 14:02Financial Data and Key Metrics Changes - The company reported revenue of EUR 154.3 million for Q3 2025, reflecting strong performance in line with expectations [12][13] - EBITDA for the quarter was EUR 109.1 million, more than double compared to the previous year [12][14] - The cash flow from operating activities was EUR 214 million, indicating robust financial health [12] - The backlog reached a record high of EUR 2.9 billion, with 78% having reached Final Investment Decision (FID) [8][12] 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 is currently undergoing upgrades in Denmark and is expected to start its long-term contract with Vestas soon [4][11] - The Wind Ally is mobilizing for the Hornsea 3 Foundation TNI project, showcasing the company's active engagement in multiple projects [4][6] Market Data and Key Metrics Changes - The company is experiencing strong demand across key markets, including the U.S., Europe, and Asia, with significant backlog growth [7][8] - The company anticipates increased competition in 2027 and 2028, leading to potentially lower utilization rates during those years [8][19] Company Strategy and Development Direction - The company aims to secure more foundation work and BTG (Balance of Plant) projects while continuing to build its O&M (Operations and Maintenance) vehicle, Nexra [8][24] - The focus is on capturing the best projects to maintain high utilization rates for its fleet [23][24] - The company is preparing for a significant outbuild of offshore wind projects in the coming decade, with expectations of vessel undersupply towards the end of the decade [22][24] 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, particularly for 2029 and 2030 [33][50] - There is an expectation of a strong near-term market, with every vessel day being captured, followed by a more balanced work environment in the middle years [28][29] - The company is actively involved in tenders across all years, emphasizing the importance of delivering value to clients [25][27] Other Important Information - The company has maintained strong support from banks for its financing needs, ensuring sufficient funding for its CapEx program [16][17] - The company is not planning to provide segment reporting for its foundation and turbine installation services [48] Q&A Session Summary Question: Confidence level for 2029 and 2030 volumes - Management's confidence is based on the number of projects being bid and clients' willingness to commit to these bids, with expectations for significant project approvals [33][34] Question: Positioning Cadeler for the next couple of years - Clients value the predictability and safety of Cadeler's large fleet, which allows for guaranteed vessel availability and backup options [35] Question: Pricing context for 2028 demand - Pricing in Europe for 2028 is under pressure, while Asia maintains a tighter supply-demand balance [36] Question: Scope of work on Hornsea 3 - Management confirmed that they are on plan for Hornsea 3, with ongoing preparations and mobilizations, but specific timelines cannot be disclosed [43][44] Question: Split of EUR 500 million contract - The company is unable to disclose the percentage split of TNI services and installation due to auction confidentiality [47] Question: Expectations for supply and demand in 2029 and 2030 - Management believes that analysts may be underestimating supply constraints, leading to an expected undersupply despite shifting demand [49][50]