Cadeler A/S Q2 FY2025 earnings call

• Wind Keeper secured a long-term contract with Vestas, with upgrades needed before it enters commercial operation in Q1 2026. Seven vessels are on hire globally, including 2 in Taiwan and 2 in North America.
• New builds: Wind Ally is almost complete, with sea trials and jacking trials underway and ahead of schedule, originally expected for delivery in November but now looking at end of September; Wind Mover is expected for delivery in Q4 2025 and is also ahead of schedule; Wind Ace is in production in COSCO in Qidong and Wind Apex is at block stage.
• Financial results: Q2 revenue EUR 233.1 million, equity ratio around 50% indicating a solid balance sheet, adjusted utilization 94.1% in Q2 and 89% in the first half.
• Sustainability: Team expansion for competencies and decarbonization, ongoing shore power upgrades for O-class vessels, equipment efficiency upgrades planned for end of Q3, biofuel testing, and development of a human rights strategy.

For the second quarter, revenue was EUR 233.1 million. Adjusting for the termination fees from the postponement of the Hornsea 4, there was still substantial growth compared to the previous year. The backlog continued to strengthen and stood at EUR 2.5 billion. The adjusted utilization for the three months in Q2 was 94.1%, which is very solid. For the first half year, the adjusted utilization was 89%, and revenue increased with more projects and vessels, showing a strong operational performance.

• Full year outlook was increased in early July due to the termination of the Hornsea 4 project. The current outlook is revenue between EUR 588 million to EUR 628 million and an EBITDA of EUR 381 million to EUR 421 million.
• The outlook is based on timely vessel deliveries and execution on projects, with revenue and EBITDA expectations within the specified ranges.

• Projects are facing delays and timeline shifts, with some projects' timelines moving closer to 2030.
• There is market recalibration, and potential pushback from developers on termination fees in contract negotiations.

Q: Firstly, on Revolution Wind and contractual protection, and on Sunrise Wind.

A: Contractually, they are as protected as possible. Currently, in dialogue with clients regarding Revolution Wind, with no firm plans known yet. For Sunrise Wind, similar contractual protection exists.

Q: On Q2 CapEx related to Wind Keeper and upgrades on Wind Keeper.

A: It's fair to assume Q2 CapEx mainly related to Wind Keeper with no unplanned CapEx. Upgrades on Wind Keeper include adding a new auxiliary crane, new bow cluster to improve DP for North Sea operation, improving leg guides, recertifying the main crane under an international classification society, and general accommodation upgrades.

Q: On whether actively looking for O&M vessel or opportunity came up for Wind Keeper.

A: Looked at other Chinese assets but Wind Keeper is unique. The decision to acquire Wind Keeper came from an attractive price point and the ability to build an O&M business case.

Q: On potential alternative work scopes for Scylla amid Revolution stop order and termination fees pushback.

A: Clients don't wish Scylla to work elsewhere now as it's mobilized for Revolution and Sunrise. But if the vessel becomes free, it could be repurposed. Termination fees are a double-edged sword; contractors like them but prefer doing projects.