Cadeler A/S Q4 FY2024 earnings call

Newbuild Deliveries - Delivered Wind Peak in 2024 on time and on budget. - First M-class vessel delivered in Jan 2025 on time and on budget, with remaining vessels on track for on-time, on-budget delivery. - Wind Pace delivered ahead of schedule, Wind Ally ahead of schedule in Cosco, Wind Mover set for Q4 2025 delivery. ### Backlog - Backlog stands at EUR2.5 billion, with strong growth and 94% of backlog having final investment decisions. ### Project Execution - Successfully installed 14.7 MW Siemens turbines on Moray West project, the first for this Siemens next-generation turbine platform. - Strong O&M work across vessels, with Zaratan securing significant O&M work and room for more. ### Sustainability - Promoted sustainability manager to Chief Sustainability and Performance Officer, expanded team. - Implemented human rights initiatives, electronic screening tool for supplier due diligence, and set decarbonization targets.

In 2024, Cadeler experienced significant financial growth. Revenue doubled from 2023, with EBITDA tripling to EUR126 million. The backlog stood at EUR2.5 billion as of 2024, with 94% of the backlog having final investment decisions. Utilization was 83% adjusted, accounting for planned dry docking, oil fires, and transit. Revenue in Q4 2024 was notably higher due to full quarters from vessels like Zaratan and Scylla. The O-Class cranes were upgraded in Q1 2024, contributing to strong performance across segments.

2025 Guidance - Revenue expected to be EUR485 million to EUR525 million, EBITDA EUR278 million to EUR380 million. - Impacted by timely vessel deliveries, foundation T&I contracts, and potential additional scope from clients. - Vessel deliveries: Wind Maker delivered in Jan 2025, Wind Pace imminent, Wind Ally ahead of schedule, Wind Mover on track.

Risks - Political headwinds in the U.S. market affecting project execution. - Challenges in newbuild deliveries due to limited yacht capacity and higher prices (up 30-45% since 2021). - Skilled labor availability and potential issues with securing access for O&M vessels. - Uncertainties in market demand for O&M work and contract economics.

Q: On O&M market demand and client access for 2026 and beyond, and contract economics.

A: Increasing contract economics, longer term commitments, similar supply-demand dynamics as installation market.

Q: On newbuild prospects and prices.

A: Deliveries challenging, prices up 30-45% since 2021, hard to get capital for newbuilds.

Q: On 2025 guidance and vessel deliveries.

A: Guidance based on locked utilization, foundation T&I contracts, some moving parts but positive.

Q: On skilled labor and execution.

A: Skilled labor available, preparation on existing vessels before newbuild delivery.

Q: On tax and O&M vessel use.

A: Tax covered by tonnage regimes, higher spec vessels preferred for efficiency.

Q: On dividend and medium term.

A: Medium term defined around second A-class vessel delivery in 2026, will communicate when ready.

Q: On industry consolidation.

A: Merger between Saipem and Subsea7 may not impact Cadeler significantly, industry still fragmented.