Cadeler A/S Q4 FY2025 earnings call

• Financial performance in 2025 was above expectations, ending at top end of guided range. Backlog was 2.8 billion euro. Four new bills delivered on time and on budget. - Added Windkeeper to fleet for O&M service platform. Continued exceptional execution on Horn C3 projects. WindKeeper upgrades completed. - Commercial highlights: Sille shifted from Revolution Wind to Sunrise Wind. Wind Orca mobilizing for Horn C3 secondary steel scope. Wind Osprey mobilizing for EA3 turbine installation. Windmover commencing turbine installation on Baltic Power Project. Windmaker executing O&M campaigns in Taiwan. WindPace mobilizing for EA3 turbine installation. WindPeak installing turbines on Sophia project. WindKeeper on HeadRide project. Wind Ally preparing for Horn C3 monopile installation. Wind Saratan to be upgraded, do O&M in Asia, then go back to Europe. - Office-based employees 362, seafarers over 800. Installed over 1,700 wind turbines, over 900 foundations, worked on over 275 O&M locations. - Transition to full scope T&I campaigns for foundation work. Horn C3 project signed in early 23, timeline from signing to commissioning in 27. Complex project with coordination needed. - Commercial pipeline global, over 50 open opportunities in Europe. Asia performing well, US still executing but no short-term opportunities. - New builds: Wendays 94% completion, naming ceremony 15th April. Wind Apex 34% completion, discussing early delivery for turbine work. - Sustainability: Biofuel blending introduced, new circularity strategy, 30% women in leadership achieved, target 40% by 2030, net zero target 2035, 50% intensity reduction by 2030. - Nexra business platform: O&M market demand growing, shifting to long-term agreements. Signed first O&M contract in Taiwan. Dedicated team for Nexra. Acquired Windkeeper, O&M services 2025 around one-fifth of total revenues.

In 2025, Cadela had strong financial performance. Revenue was 620 million euros, EBITDA was 425 million euro, net profit was 280 million euro. Backlog was 2.8 billion euros. Utilization was 88.9% adjusted. Vessel OPEX per day was 36.3 million. Office-based headcount average was 307. Equity ratio was 44%. Q4 2025 had 167 million euro revenue, 82 million increase from Q4 2024. Cost of sales and SDNA increased with delivered vessels. Finance net isolated for Q4 was 20 million euro. EBITDA for Q4 was 104 million euro. Backlog 80% reached FID. WindKeeper added to fleet. Vessels operating in Europe, US, APEC. Installed over 1,700 wind turbines, over 900 foundations. O&M services formed around one-fifth of total revenues in 2025.

• Outlook for 2026: Revenue 854 to 944 million, EBITDA 420 to 510 million. - 2027 considered fully booked. Wind Apex potentially delivered early for turbine work. - Horn C3 project revenue stretched over time, some pushed into 2027. - Wind Ace delivered in Q3 2026, no contractual revenue in 2026. - Saratan transition year, investment year improving returns in 2027 and onwards.

Q: I think I heard during the prepared remarks that you said the Wind Apex would be delivered early and do turbine work. Could you talk a little bit about the background for using the vessels for turbines and not foundations and the decision process behind that?

A: The reason for delivering Wind Apex early and using it for turbine work is that there was an opportunity to embark on a turbine installation project which could open up other opportunities. Considering fully booked 2027 and limited available capacity for clients, this was the best decision for Cadela. The first project will be a turbine installation project, and it could lead to potential for other work.

Q: Can you talk a little bit to why Cadela have been more successful than the industry for 2028 and what has changed since last quarter?

A: Since last quarter, Cadela is much more positive about 2028. One reason is the preferred supplier agreement on a large-scale foundation project. Also, other things they are working on have progressed. So they feel much better about 2028 than before.

Q: Could you talk to how you look to allocate capital ahead between shareholder returns, delivering, and you also spent some time in the presentation today talking about growth opportunities?

A: Capital allocation is ultimately a board decision. They believe they will spend capital in three buckets: delivering the company, maintaining position in the industry, and returning capital to shareholders in some form. All three buckets are possible as they generate capital.

Q: If I look at slides 12 specifically, As you understand it correctly, essentially, we're now going to have a much more progressive ramp up in revenue through the year from that project. It's just going to be very back half weighted. And it looks like the expectation is first turbine installed around 3Q. So if I assume that the margin and EBITDA contribution should really start to kick in from the second half. Is that a fair assumption?

A: Overall, that is a fair assumption. Horn C3 is more value creating now than when signed, but revenues and profits are stretched over time due to decisions by others. The flow of foundations is slower, out of Cadela's control, so margin and EBITDA contribution start to kick in more from the second half.

Q: Could you give us a sense of how you expect to balance the sort of longer term agreements with the shorter term contracts? Is the idea to sort of keep Zaratan and Scylla available for more spot O&M while Windkeeper kind of takes the longer term contracts? Or could we see you enter into a longer term contract with a specific one client on those assets?

A: It depends on project economics. There are limits where it's better to stay in spot market than sign long term. It's an internal evaluation. Long-term agreements are considered if they meet criteria, but spot market can be beneficial for social capital and availability.

Q: Could you break down the order backlog indicatively on 26, 27, 28 and 29 and beyond?

A: Unfortunately, they don't break down order backlog year by year, only give guidance one year ahead.

Q: Do you expect to see more of your competitors to place new billing orders for 29 and 2030 or beyond delivery, given the outlook comments that you're coming with today?

A: Based on supply and demand balance and yard tightness, it's surprising if several companies are not already looking at yards for new billing orders.

Q: The first question is about the foundation installation business. And I noticed that actually the foundation business includes quite large preparation works. and it has larger amount. And could you please share with us what's your target of the foundation business in the future? Would the volume or the amount be higher than next year? You just mentioned that next year, the future revenue would be, maybe it would be higher than the installation revenue. So could you please share with us about the foundation business your target or your strategy.

A: They have a humble approach to full scope foundation T&I projects. In 2026, executing Horn C3 project. In 2027, embarking on EA2 project with Scottish Power Renewables. Long term target is to execute several foundation projects in parallel. Believe O&M market could be as big as installation market due to outbuild targets requiring O&M.

Q: The second question is about the financial expenses. And I noticed that in 2025, the financial expenses are a little bit higher. Could you give us some color about the financial expenses in the near term or in the one to three years? Because with Our two vessels delivered in 2026 and 2027, these expenses cannot be capitalized and they should go to the P&L. Could you give us some colors about that?

A: Financial expenses in near term: net finance was around 20 million euro in Q4 2025. As vessels are delivered, less goes to CapEx. 2026 will be more representative of Q4 2025, and 2027 will have no capitalized financing expenses, with more financial expenses going to P&L.

Q: I have a couple of questions on 2027 that you maybe can kind of enlighten me on. Because I think you now say that 2027 is getting fully booked from your perspective. So what type of utilization level are you kind of targeting or at least some kind of range when you're talking about kind of fully booked this year? Because I think based on announcements, it looks like there's a lot of white space, but obviously you guys have looked it through.

A: They target utilization between 75 to 90% adjusted. Adjusted utilization excludes plant dry dockings and transits. For 2027, they consider themselves fully booked, with potential contract for Wind Apex being part of that consideration.

Q: It seems like that Orca will be working together with the LA on all C3 on secondary skill. It seems from the slide that you kind of indicate that going through Q1, maybe into Q2, is that kind of correctly assumed?

A: It's correct that Orca is starting almost side by side with Ally for the campaign to Horn C3. There was evaluation to use a jackup for weather downtime and project economics, so Orca is mobilizing for secondary steel scope starting around Q1 into Q2.