Executive Summary / Key Takeaways

• Dominant Market Position & Specialized Fleet: Cadeler (NYSE:CDLR) is a pure-play leader in offshore wind installation and maintenance, boasting the industry's largest and most capable fleet of jack-up vessels. Its specialized P-class vessels offer significant efficiency advantages, such as installing 15MW turbines in 214 days compared to 269 days for standard vessels, driving superior value for clients.
• Robust Financial Performance & Strong Backlog: The company delivered exceptional financial results in H1 2025, with revenue more than tripling to EUR 299 million and EBITDA surging by 868% year-on-year to EUR 213 million, partly boosted by termination fees. A record-high backlog of EUR 2.5 billion, with 97% of projects having Final Investment Decision (FID), provides substantial earnings visibility.
• Strategic Fleet Expansion & O&M Focus: Cadeler is executing a significant newbuild program on or ahead of schedule and budget, enhancing capacity for next-generation turbines and foundations. The launch of Nexra, a dedicated O&M division, and the strategic acquisition of the Wind Keeper, underscore a proactive approach to capturing growing demand in the O&M market and stabilizing fleet utilization.
• Favorable Industry Tailwinds & Undersupply: The offshore wind market is experiencing strong growth, driven by increasing energy demand and supportive policies in Europe and APAC. A projected undersupply of capable installation vessels, particularly for foundations from 2029, positions Cadeler's high-spec fleet for sustained demand and strong contract economics.
• Disciplined Capital Management & Risk Mitigation: Despite market recalibrations and project delays (e.g., Hornsea 4, Revolution Wind), Cadeler maintains a solid balance sheet with a ~50% equity ratio and fully funded CapEx. Robust contractual protections and a cautious, project-by-project approach to volatile markets like the U.S. help mitigate risks.

The Foundation of Offshore Wind: Cadeler's Specialized Fleet and Strategic Vision

Cadeler A/S, established in 2008 in Copenhagen, Denmark, has emerged as a global leader and pure-play specialist in offshore wind farm installation, operations, and maintenance services. For over a decade, the company has been a pivotal supplier in the development of offshore wind energy, a sector critical to the global energy transition. Cadeler's strategic journey, marked by its 2020 listing and significant newbuild orders in 2020 and 2021, culminated in a transformative merger with Eneti in June 2023. This combination aimed to create a robust platform for global offshore wind installation with minimal operational overlaps, solidifying Cadeler's position as a dominant force in the industry.

The company's overarching strategy is to build a resilient business with a clear and consistent focus on its core competencies, enabling it to manage market shifts and deliver exceptional services. This involves continuous fleet modernization, strategic partnerships, and a proactive approach to emerging market demands. Cadeler's commitment to sustainability is deeply embedded in its operations, with initiatives ranging from decarbonization roadmaps to human rights strategies, reflecting its role in renewable energy.

A Differentiated Technological Edge in a Growing Market

Cadeler's core competitive advantage lies in its highly specialized fleet of jack-up offshore wind installation vessels, designed to handle the largest and most complex next-generation offshore wind projects. These vessels are not merely transport platforms; they are sophisticated engineering assets that offer tangible, quantifiable benefits over standard industry alternatives.

For instance, in a theoretical project involving 100 15-megawatt (MW) turbines located 140 nautical miles from shore in the North Sea, Cadeler's P-class vessel demonstrates superior efficiency. Capable of transiting with six wind turbine generators (WTGs) per round trip, it would require only 17 round trips and 2.14 days per turbine, culminating in an installation time of 214 days. This contrasts sharply with a standard Gusto engine 9,000 vessel, which can only transit with two turbines, requiring 50 round trips and 2.69 days per turbine, totaling 269 days for the same project. This 55-day efficiency gain underscores the P-class vessel's ability to significantly reduce project timelines and associated costs for clients, making Cadeler's assets highly sought after. Mikkel Gleerup, CEO, emphasizes that "the stronger assets will be the first ones to be taken in the market because they simply drive a better value proposition to the clients."

Beyond installation, Cadeler is actively investing in technological innovation to enhance its operational efficiency and environmental footprint. The company is implementing shore power upgrades for its O-class vessels, with Wind Osprey's upgrades finalized in Q1 2025, and planning equipment efficiency upgrades for O-class vessels by the end of Q3 2025. Furthermore, Cadeler is testing biofuel blends for its legacy vessels and has signed a Letter of Intent (LOI) for e-methanol offtake from 2028, aiming to significantly reduce its carbon emissions. These initiatives, coupled with the development of real-time performance dashboards on vessels and flexible sea fastening tools for O&M, are designed to optimize energy consumption, adopt green fuels, and enable electrification. For investors, these technological differentiators translate into a stronger competitive moat, potentially higher asset utilization, and improved margins, reinforcing Cadeler's market leadership and long-term growth prospects in a rapidly evolving industry.

Competitive Landscape: Cadeler's Niche Dominance

Cadeler operates in a competitive yet undersupplied market, where its specialized focus provides a distinct advantage over more diversified marine services providers. While companies like Boskalis (BOKA), Saipem (SPM), and Subsea 7 (SUBC) also engage in offshore energy infrastructure, Cadeler's pure-play dedication to offshore wind sets it apart.

Boskalis, a global marine services provider, offers a wider range of services, benefiting from greater scale and diversification. However, Cadeler's specialized fleet and operational expertise in wind-specific tasks allow it to target high-demand wind projects more effectively, potentially leading to improved gross margins in specialized segments. Saipem, an energy infrastructure contractor, is transitioning towards sustainable energy but maintains a broader focus encompassing offshore oil and gas. Cadeler's specialized strategy offers greater efficiency in wind-specific tasks, potentially leading to stronger revenue opportunities in green markets. Subsea 7, specializing in subsea engineering, also supports wind farms, but Cadeler's asset-centric approach for wind installation and maintenance offers reliability in wind farm operations, differentiating it from Subsea 7's broader subsea versatility.

Cadeler's analysis suggests that the number of vessels capable of "efficiently installing" 15MW class turbines is significantly lower than overall market estimates, and the situation for efficient foundation installation is "even more dramatic," with an undersupply expected from 2029. This scarcity of high-spec vessels reinforces Cadeler's market positioning and pricing power. Barriers to entry, such as high capital requirements for specialized vessels and the need for extensive technical expertise, further protect Cadeler's established position. While newbuild prices have increased by an estimated 30% to 45% since 2021, making speculative orders challenging, this also limits new competition and strengthens the value of Cadeler's existing and ordered fleet.

Financial Momentum and Operational Excellence

Cadeler's financial performance in the first half of 2025 demonstrates robust growth and operational effectiveness, aligning with its strategic objectives. The company reported H1 2025 revenue of EUR 299 million, a significant increase from EUR 82 million in H1 2024, representing a 265% year-on-year growth. This surge was partly driven by substantial termination fees from the postponement of the Hornsea 4 project. EBITDA for the same period reached EUR 213 million, an impressive 868% increase from EUR 22 million in H1 2024, with profit for the period at EUR 168 million. Even when adjusted for termination fees, management noted that the results reflect substantial underlying growth.

In Q2 2025 alone, revenue stood at EUR 233.1 million, and EBITDA reached EUR 189 million, significantly up from EUR 32 million in the comparable period last year. This strong performance is a testament to fleet growth, disciplined project execution, and a sharpened strategic focus on Operations & Maintenance (O&M). Adjusted utilization, a key operational metric, was 94.1% in Q2 2025 and 89% for H1 2025, indicating efficient deployment of its operational fleet.

The company's full-year 2024 results also showcased significant progress, with revenue doubling to EUR 249 million and EBITDA tripling to EUR 126 million from 2023 levels, highlighting the scalability of Cadeler's business model. This growth was supported by high demand for services, the successful Eneti merger, and the commencement of operations for newbuilds like Wind Peak in Q4 2024.

Cadeler maintains a solid balance sheet with an equity ratio consistently around 50%, providing a strong financial foundation for its capital-intensive operations. The company's CapEx program, including the financing of its newbuilds, is expected to be fully funded, with EUR 2.1 billion in committed facilities. The acquisition of the Wind Keeper, for instance, was financed through a EUR 125 million takeout facility, with the remainder covered by operational cash flow and existing cash reserves, demonstrating prudent capital management. Cadeler also employs a disciplined hedging policy, covering 50% of its USD exposure on yard installments and 50% of its interest exposure.

Expanding Horizons: Newbuilds, Nexra, and Global Reach

Cadeler's strategic fleet expansion is a cornerstone of its growth narrative. The company has successfully delivered Wind Maker and Wind Pace in Q1 2025, both on or ahead of schedule and within budget. These vessels immediately commenced operations in the APAC and U.S. markets, respectively, underscoring Cadeler's expanding global footprint. The remaining newbuilds are also progressing well: Wind Ally is ahead of schedule for delivery by the end of September 2025, Wind Mover is expected in Q4 2025, Wind Ace in Q3 2026, and Wind Apex in Q2 2027. All are on or ahead of schedule and within budget.

A pivotal strategic initiative in 2025 was the launch of Nexra, Cadeler's dedicated Operations & Maintenance (O&M) offering. This new division aims to be an "O&M powerhouse," providing specialized services for larger turbines and complex sites, thereby deepening client engagement and securing high utilization for the entire fleet. The acquisition of the Wind Keeper, a newly-constructed jack-up WTIV, ahead of schedule in Q2 2025, further bolsters Nexra's capabilities. The Wind Keeper has already secured a long-term contract with Vestas (VWS) for three years, with options for an additional 2.5 years, commencing in Q1 2026. This acquisition was a strategic move to capitalize on the strong and increasing demand for O&M services, particularly for larger turbines.

Cadeler's contract backlog stands at a record EUR 2.5 billion, with a significant 97% of projects having reached Final Investment Decision (FID) as of Q2 2025. This high FID percentage provides exceptional earnings visibility and reflects Cadeler's selective approach to project engagement. Recent contract wins include a firm agreement with Ocean Winds for WTG installation at the BC-Wind offshore wind farm in Poland, valued between EUR 49 million and EUR 58 million, with installation starting in 2028. Additionally, a firm contract was signed with Synera Renewable Energy for the T&I of 35 Siemens Gamesa (SGRE) 14MW wind turbines at the Formosa 4 Offshore Wind Farm in Taiwan, commencing in March 2028.

Geographically, Europe remains the primary driver of the global offshore wind market, with significant activity in the North Sea and Baltic Sea regions. The Asia-Pacific market, particularly Taiwan, Japan, and Korea, is also experiencing strong tender activity. While the U.S. market presents complexities and political headwinds, Cadeler maintains a cautious, project-by-project approach, ensuring contractual protections and sound financials for each engagement. The Wind Pace is currently deployed in the U.S., marking Cadeler's third project in the region.

Outlook and Risks

Cadeler's full-year 2025 guidance projects revenue between EUR 588 million and EUR 628 million, and EBITDA between EUR 381 million and EUR 421 million. This upward revision, announced in July 2025, is largely attributed to termination fees from the Hornsea 4 project. The outlook is supported by timely vessel deliveries, successful project execution, and the increasing recognition of revenue from foundation projects. While some initial Transport & Installation (T&I) scope in 2025 may carry lower margins, the bulk of the benefits from foundation projects are expected to materialize from 2026 onwards when installation commences.

Despite a positive long-term outlook for offshore wind, management acknowledges that 2027 and 2028 could be more challenging if large projects are delayed. The market is undergoing a recalibration due to previously unachievable targets and auction outcomes, but policy improvements are expected, as seen in Denmark and the UK.

Key risks include the ongoing uncertainty surrounding projects like Revolution Wind in the U.S., which is currently halted. However, Cadeler emphasizes that its contracts, including those for Revolution Wind and Sunrise Wind, are "as well protected as you can be," with significant contractual safeguards. The postponement of Hornsea 4, while resulting in termination fees, highlights the potential for project delays, though Cadeler's strategy of having backup plans and a flexible team helps mitigate such impacts. The availability of skilled labor is a continuous focus, addressed through internal training programs to ensure operational excellence and safety across its sophisticated fleet. Initial "teething issues" observed with the Wind Peak, Cadeler's first newbuild, are being actively learned from and addressed in subsequent vessel deliveries, demonstrating a commitment to continuous improvement.

Conclusion

Cadeler stands as a compelling investment in the burgeoning offshore wind sector, distinguished by its specialized fleet, technological prowess, and strategic expansion into O&M services. The company's exceptional financial performance in H1 2025, driven by fleet growth and robust contract economics, underscores its operational strength and the effectiveness of its business model. With a record-high backlog predominantly secured by Final Investment Decisions, Cadeler offers investors significant earnings visibility and a clear growth trajectory.

The strategic launch of Nexra and the acquisition of the Wind Keeper position Cadeler to capitalize on the increasing demand for O&M services, further enhancing fleet utilization and diversifying revenue streams. While the industry faces recalibrations and project-specific risks, Cadeler's disciplined approach to contract protection, capital management, and continuous innovation in vessel technology and sustainability initiatives provides a strong foundation. As the global energy transition accelerates, Cadeler's leadership in providing efficient and capable installation and maintenance solutions for next-generation offshore wind farms firmly establishes its role as a critical enabler of renewable energy, promising sustained value creation for its investors.