Cadeler A/S Sponsored ADR ((CDLR)) has held its Q2 earnings call. Read on for the main highlights of the call.
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Cadeler A/S Reports Robust Financial Performance Amid Strategic Growth Initiatives
The recent earnings call for Cadeler A/S Sponsored ADR reflected a strong financial performance, driven by increased guidance and a substantial backlog. The company has been successful in securing new contracts and managing projects efficiently. Despite facing challenges such as the delay of the Hornsea 4 project and uncertainties in the U.S. market, Cadeler’s strategic initiatives, including the launch of Nexra and timely vessel deliveries, indicate a positive outlook for the future.
Above Expectation Financial Performance
Cadeler’s financial performance in the first half of 2025 exceeded expectations, leading to an increase in full-year guidance in July 2025. The company reported a revenue of EUR 233.1 million for Q2, a significant growth compared to the previous year, driven by termination fees. The equity ratio remained solid at around 50%, and EBITDA saw a remarkable increase from EUR 32 million to EUR 189 million.
Significant Backlog and New Contracts
The company’s backlog remains robust at EUR 2.5 billion, even after the removal of the Hornsea 4 project. Cadeler added a new project in Taiwan, Formosa 4, to its backlog, which boasts healthy contract economics. Notably, 97% of the backlog includes final investment decisions, underscoring the company’s strong market position.
On-schedule New Vessel Deliveries
Cadeler is ahead of schedule with its new vessel deliveries. The Wind Ally is expected to be delivered by the end of September, earlier than the initial November 2025 timeline. Similarly, the Wind Mover is set to be delivered slightly ahead of schedule in Q4 2025. All new builds are progressing on or ahead of schedule and within budget.
Launch of Nexra Service Concept
In response to strong demand for operations and maintenance (O&M) services, Cadeler launched Nexra, a new service concept. The Wind Keeper vessel, secured through a long-term contract with Vestas, will undergo tailored upgrades to align with Cadeler’s operating model and is slated to begin operations in Q1 2026.
Hornsea 4 Project Delayed
The delay of the Hornsea 4 project by Orsted resulted in its removal from Cadeler’s backlog. While the backlog remains strong, this delay poses a significant challenge for the company.
U.S. Market Challenges
The U.S. market represents less than 10% of Cadeler’s total backlog, with the Revolution Wind project facing potential halts. The situation surrounding this contract remains uncertain, posing challenges for Cadeler’s expansion in the U.S. market.
Forward-looking Guidance
During the H1 2025 earnings call, Cadeler provided guidance reflecting an improvement in financial performance, leading to an increased full-year guidance in July 2025. The company’s backlog stands at EUR 2.5 billion, despite the Hornsea 4 project delay. Cadeler’s fleet includes seven vessels currently on hire globally, with strong demand for O&M services, particularly for larger turbines, prompting the establishment of Nexra. The company adjusted its 2025 revenue outlook to a range of EUR 588-628 million and EBITDA to EUR 381-421 million, factoring in termination fees from Hornsea 4.
In summary, Cadeler A/S’s earnings call highlighted a robust financial performance and strategic growth initiatives. Despite challenges such as the Hornsea 4 delay and uncertainties in the U.S. market, the company’s increased guidance, substantial backlog, and timely vessel deliveries indicate a positive outlook. Cadeler’s strategic focus on expanding its fleet and enhancing service offerings positions it well for future growth.