Cadeler A/S Q2 FY2026 earnings call

Core Operational Milestones

• Delivered the second A-class vessel (ACE) ahead of schedule and on budget in July 2026, which is now undergoing mission equipment mobilization in China ahead of final mobilization in Europe. The company now has 11 delivered vessels total.
• Completed the acquisition of Menck, a leading global provider of offshore foundation installation equipment, for an enterprise value of ~€500 million, with transaction closing in August 2026.
• Signed firm contracts for two new T-class new build vessels, to be delivered in 2030 and 2031.
• Accelerated delivery of Wind Apex (new build vessel) to Q2 2027 per agreement with the shipyard COSCO, aligned with upcoming contracted project demand.
• Achieved solid operational execution across active global projects: foundation/turbine installation is progressing on schedule at Revolution Wind, Hornsea 3 (ONCE3/ONS 3), EA3 (Baltic Power), and Gunzilla (US), with Osprey delivering particularly rapid installation performance; the Osprey and WindPieper vessels are currently installing turbines on the EA3 project; multiple vessels are completing O&M work in Asia. ONS 3 project execution has moved from proof of concept to efficient, safe production installation, with ongoing optimization work to capture learnings for future projects.

Strategic & Commercial Highlights

• The Menck acquisition strengthens Kettler's end-to-end offshore foundation installation offering by integrating vessel capacity with specialized installation equipment, addressing industry-wide concerns around insufficient hammer supply for upcoming projects. Menck will operate at arm's length to maintain open access for peer companies, aligning with Kettler's strategy of serving the broader industry.
• The combined Kettler-Menck business has unparalleled industry data from thousands of installed foundations, which will be leveraged to improve bidding accuracy, project planning, and installation efficiency. Menck is also shifting toward an attractive rental earnings model that aligns with Kettler's business strategy.
• The company maintains a strategy of building fleet scale to provide clients with operational redundancy, which has been well-received by clients that face costly delays from unforeseen issues. Integrating vessel and hammer capacity removes a key risk interface for client projects.
• Nexra (O&M business) saw a pickup in commercial activity in H1 2026, with the team actively pursuing long-term client commitments, and Kettler remains committed to growing this segment.
• Financing is fully in place for all current investments (Menck acquisition, A-class completion, T-class down payments) with no plans for an near-term equity issuance, and the company maintains a solid balance sheet with 50% equity ratio and €280 million in available liquidity after all planned near-term outlays.

For the full H1 2026 (ending 13 June 2026), adjusted revenue (adjusted for the €111 million 2025 termination fee) more than doubled year-over-year to €480 million, with adjusted overall vessel utilization of 85%. For Q2 2026 alone: reported revenue was €282.8 million, a 132% year-over-year increase after the 2025 termination fee adjustment; vessel utilization reached 91%, up from the adjusted prior year comparable level, and an increase from 48% in Q1 2026; Q2 2026 EBITDA was €131.6 million, a 106% year-over-year increase; Q2 2026 net profit was €95 million, a 73% year-over-year increase; average Q2 daily vessel operating OPEX was €39,871, near the historical run rate just below €40,000. Total company backlog as of H1 2026 stands at €2.5 billion, a 23% year-over-year increase, with 77% of the backlog from projects that reached final investment decision (FID). Nexra (Kettler's O&M business segment) recorded more than 230 vessel days of contracted service work in H1 2026, with three vessels active across Europe and Asia-Pacific. The recently acquired Menck segment generates majority revenue from hydraulic hammers, with additional revenue from lifting/handling equipment, noise mitigation solutions, and routing/drilling technology, and is already profitable as of August 2026. No formal segment revenue contribution percentages were provided.

• Management maintained full-year 2026 guidance (excluding the impact of the Menck acquisition, which will be updated once full integration analysis is completed in the coming months): full-year 2026 revenue is expected in the range of €854 million to €944 million, and full-year EBITDA is expected in the range of €420 million to €510 million.
• Management expects strong vessel utilization (similar to Q2 2026 levels) for the second half of 2026, driven by ongoing project activity after the Q1 2026 fleet ramp-up.
• Management reaffirms that the baseline project backlog for 2028 and the first half of 2029 is already strong, and expects additional project awards (including extensions to existing contracts and conversions of current preferred supplier agreements) to add further activity for that period. A sharp uptick in client inquiry and bidding activity is already visible for projects starting in the late 2020s and early 2030s.
• Management continues to expect a structural undersupply of efficient offshore installation vessels in the coming decade, as many existing vessels will reach retirement age or cannot meet modern efficiency requirements, supporting strong long-term demand for Kettler's fleet.

No material new risks or operational failures were discussed during the call. Management only noted the standard forward-looking statement disclaimer that actual results may differ materially from projections due to the risks and uncertainties disclosed in the company's annual Form 20-F filing with the SEC.

Q: After the strong Q2 2026 utilization increase, what utilization should we expect for H2 2026, and what is the contribution timeline for the Hornsea 3 project? / A: Management expects strong utilization matching Q2 levels for the remainder of 2026, given the current high level of active project work. On Hornsea 3, monopile installation will continue through Q3, with the company focused on accelerating execution to capture process learnings that will benefit all future projects; no specific timeline for turbine installation start was confirmed.

Q: Beyond the current preferred supplier agreements for 2028, are there additional potential project additions for that year? / A: Management confirmed there are additional potential 2028 projects in the pipeline, including extensions to existing active projects that are running longer than originally planned. The baseline for 2028 is already solid, with more upside expected from pending awards.

Q: Q2 2026 depreciation increased meaningfully — is the Q2 depreciation level the expected ongoing run rate as new vessels are delivered? Are there any impairments impacting Q2 depreciation? / A: Management confirmed the Q2 increase is driven by the A-class vessel having a full quarter of depreciation, and this approximate level is the expected run rate going forward, adjusted for additional new vessel deliveries. There were no impairments impacting Q2 depreciation.

Q: With multiple large simultaneous investments (A-class completion, T-class ordering, Menck acquisition), is the staggered investment schedule manageable, what return hurdles are applied, and when will each investment generate returns above cost of capital? / A: CapEx outlays are staggered: the Menck purchase is already complete, the majority of T-class CapEx is not due until 2030 and 2031 near delivery, and only small near-term outlays are required currently. All investments clear the company's internal IRR hurdle, with ACE (the new A-class vessel) starting revenue generation in early 2027, Menck already generating positive operating cash flow as of August 2026, and T-class vessels starting revenue 6-9 months after their 2030/2031 delivery.