Cadeler A/S ($CADLR)

Good morning, and welcome to Cadeler's Q1 2026 Earnings Presentation. Presenting today are Mikkel Gleerup, Chief Executive Officer; and Peter Brogaard, Chief Financial Officer. Please be reminded that the presenters remarks today will include forward-looking statements. Actual results may differ materially from those contemplated the risks and uncertainties that could cause Cadeler's results to differ materially from today's forward-looking statements include those detailed in Cadeler's annual report on Form 20-F on file with the United States Securities and Exchange Commission. Any forward-looking statements made this morning are based on assumptions as of today, and Cadeler undertakes no obligation to update these statements as a result of new information or future events. This morning's presentation includes both IFRS and certain non-IFRS financial measures. A reconciliation of non-IFRS financial measures to the nearest IFRS equivalent is provided in Cadeler's annual report. The annual report and today's earnings presentation available on Cadeler's website at cadeler.com/investor. We ask that you please hold all questions until the completion of the formal remarks, at which time you will be given instructions for the question-and-answer session. As a reminder, this call is being recorded today. If you have any objections, please disconnect at this time. Mikkel Gleerup, you may begin.

Thank you very much, and hello to everyone, and thank you for joining this Q1 2026 presentation from Cadeler. Just to start off the presentation really quarter that it has been running exactly as expected. Financial performance in line with our expectations, continuing a robust backlog of work standing currently at EUR 2.7 billion, which we believe provides a very solid earnings visibility for the company. We build program on track. We named the second A-class vessel in April and she is about to deliver in the next couple of months as per the schedule. The second -- or the third rather A-class vessel is delivering next year and is also on the schedule. We have continued with solid execution across the globe. And I'm also very pleased to say that when the [indiscernible] are fully mobilized and first complete monopile foundation has been installed on [indiscernible], which is very, very important and a very important milestone for 2026, and we have a little bit extra on that further in the presentation. Very strong utilization vessels operating across the world and in Nextrasecured utilization on multiple projects in APAC. And on the utilization, I would like just to quickly say, that obviously, we have many vessels that have been shifting between projects or a lot of mobilization in the first quarter of the year, which has also been exactly as expected. In terms of commercial highlights, vessels continuing to execute on projects across the fleet, really busy, busy, busy quarter in terms of managing vessels coming off projects, starting new projects and having other vessels coming in to take over on projects due to many different factors. But really, overall, I would also say a quarter where we have been able to support our clients and to know what has been necessary to help them on their updates where they are currently engaged. Also very pleased to see that when Kipa has started this operation with [indiscernible] and is performing on the project with Vestas as we speak. Next slide, please. On a Tier 3, as I said, really from concept to delivery, we have had many, many questions over the course of the last 4 years where we have been in process towards the NCI execution, a lot of planning is now finally coming to fruition. And it's very pleasing to be able to say that we now have proof of concept on the project with the first full monopile installed and also all the secondary components being installed on that and being commissioned and handed over to the client. And actually, we have 8 monopiles in the water as per today's space. We have 7 full -- secondary steel sets installed and 5 fully commissioned monopiles out there. So really, the project is going as per the plan. The equipment that we have invested in that we are using on the product is working as we expected it. And we are now slowly ramping up the speed on the project to get up to the speed where we want to be and to really make sure that there will be a smooth installation on this very, very important project, both for us and [indiscernible] certainly also for our clients. So very, very pleased to say that we have a proof of concept and that we are now delivering the full T&I foundation project. Still sitting on a very significant backlog across key markets, EUR 2.2 billion backlog, as I said, already provides a very solid earnings visibility. We continue to operate in the U.S., in Europe and in APAC, and are really working on a lot of different opportunities for the future years. As we have said in this quarter also, we have executed a private placement for the investment in additional jack-ups for the future and also for a brokdumping inflation vessel that we believe all will strengthen our portfolio and our ability to support the clients going forward. We have also projects that are not in the backlog, but where we are currently working and projects that will be added to the backlog as and when they come to fruition. But all in all, I would say that we have been reaffirmed in our opinion since the beginning of the year that we are looking at a very, very busy '26, '27. As we have also said, '28 is a different year, but we remain in the same position as we were when we in the annual report. And for 2029, we are working on some very, very interesting prospects at the moment. When we look into the new decade, we are also seeing very interesting projects and also a lot of projects currently in what we call category high. So this is really the category where we are working already now initially with the client and where we believe that our vessels will be busy in the beginning of the next decade. On the backlog, 82% of the backlog has reached FID. We believe that, that is a very, very solid number and also gives us the earnings visibility that we really need as a company. We also see the start of [ Nexa ] and the foundation of Nexa starting to deliver contracts in Taiwan, which is, of course, very pleasing. And our ambitions on network continues to be strong, and we continue to see that our main market for Nexa is the plus 11, 12-megawatt segment where we believe that we have a very good foundation to play for the main component replacements for the bigger turbine sets in the industry. We also have preferred to agreement that is not included in the backlog and where we currently are negotiating with a client for installation in '28. In terms of the progress on the new builds, the wind days, we expect the delivery in the beginning of the third quarter this year, we have basically done most of the material work there, but we are still having some test plan for the vessel between now and the delivery, and we believe that we are in a very, very good position to deliver this vessel on schedule and on budget. We had the naming ceremony this year, and we were proud to have Ms. Lisa Westar, naming the vessel for us. The [ Wind Apex, ] as we also talked about on the annual report, we expect the Wind Apex to deliver in Q2 2017. And we have been negotiating with Dato manage early delivery of this vessel because we're working with the client for the Wind Apex immediately after it's returned to Europe and where it will likely start a job for a client here in Europe. A few pictures from the naming ceremony on Windeys, a very big day for us as a team. Second, foundation installation vessel delivered and the vessel will -- after its delivery from the shipyard return to Europe, for the full mobilization for the East [ Anglia II ] project that we are commencing next year. And obviously, we are already starting to take the learnings from the 13 project and implementing them into the EA2 project, so we can ensure that our clients get the best possible product from [indiscernible]. On the financial highlights, I will hand over to you now, Peter.

Thank you very much. Yes. For Q1 26, revenue was EUR 124.7 million as compared to EUR 65.5 million last year. ex-year ratio 47.6%, and the adjusted utilization 77.7%, which is satisfactory for us. We adjust to say for transfer from the yard and plant at Drydocks, and we had [indiscernible] not on hire in Q1. So this is really what is expected. Margin cap is EUR 2.3 billion. EBITDA was EUR 47 million as compared to EUR 23.7 million net profit, minus EUR 7 million impacted as also communicated at the annual report by interest on our bank facilities. We are now in the territory where we have delivered 10 vessels fleet and only 2 risks under construction since more of the borrowing costs go to the P&L than we saw in previous quarters, backlog spent by EUR 2.7 billion strong backlog. Three months daily average turnover of EUR 10.7 million. We have adjusted for the prior placement that we did the 26th of March. If we look at the P&L, I think it's important to emphasize that it is exactly as planned by us and totally in line with our own expectations. It goes for all the lines, both revenue and the cost lines. It was as expected and regarded as a solid start to the year. Of course, revenue increase as compared to last year because we have 3 more lists on warning. As of sales goes up also due to the bigger fleet goes up, of course, relatively more than revenue because that we had some -- we had 3 vessels in transit. We had vessels going from one project to another. And we also had delayed revenue [indiscernible] project. I think it's important to explain that according to IFRS, we can not start revenue recognition on a project before we start installing. So [indiscernible] been mobilizing for the G3 project in Q1, but we have not taken any revenue in. That would be done later, of course, we earn revenue on the contract under the normalization, but come up revenue in the P&L SG&A increased to last year. But again, modest increase that shows, again, the picture that we have explained in previous quarters that we did early manuf the organization to enable a bigger fleet, but also a formation project. And then that now shows the scalability of our organization. So the early investments now based off finance net considered to be up against last year. But due to this more is allocated to P&L then through the CapEx on the risks Open per day is 37 per day. And that is a little bit higher than it will be the rest of the year due to mobilization on [indiscernible] and [indiscernible] and the smaller one-off expenses in OpEx in Q1. Balance sheet. From balance sheet, of course, increased by the equity is increased by the counter rates. We did 26th of mass and also lifting the [indiscernible] ratio from 44% for 48%. [indiscernible] program, it's the slide we've shown in the past to demonstrate that we are able to finance the expansion of the fleet that we have as we have planned. So as you can see, we have signed completed financing for [indiscernible]. We are in the advanced discussions with the banks to launch the OpEx financing in Q2 here in Q2 '26 expected to sign early Q3 for the business that is delivered next year. So in total, EUR 641 million available funding for that and mid of the outstanding installments with a net funding of EUR 218 million, and we have not in this -- we are not taking the cash that we have on the balance sheet and the available facilities that we have not drawn on. So cash on available liquidity as per 31st of March was EUR 221 million and available liquidity EUR 369 million. Of course, then we also have not -- that should also cover the payment on the first installment on the [indiscernible] 1 signed and are and this installation vessel that we have announced in collection with the private placement. Still, we on our handset product, which we stretch forward is 50% of U.S. dollar poised and 50% of interest exposure hit for the first 5 years of the expanded facilities. This is the financial or if we should focus on what has happened since annual report. We have expected the year that was supposed to terminate in June '26. We have extended it for 18 months to EUR 27 million. And we are in advanced negotiation on court on the corporate loan that we have with BC EUR 80 million we expect to sign that here in Q2. And the reason for this is it is to have a reasonable offer when we are looking at the available liquidity. So we 100% sure that we could go through the coming years and the cash program with the current financing. The full year outlook remains the same. It's unchanged. And there's nothing we have seen from the performance in Q1 or on to date. That is not according to plan. Hence, of course,, we maintained the outlook for the year. The timing of the year is something that has maybe surprised some, but we have always planned with a somewhat weaker Q1 in terms of revenue or income. And then Q2, Q3, Q4 will be bigger quarters in terms of revenue and income and total -- the full outlook is unchanged. I'll hand back you you.

Thank you very much, Peter. In terms of market outlook, a slight repetition of what we saw in -- around the annual report, but what we are adding here is that we believe that the recent geopolitical tensions are increasingly pointing toward a higher demand for locally produced energy, energy security and affordability. And we believe that offshore wind will play a massive role in a whole out of at least the European energy system. And we can already start to see the trends of that coming our way. also with auctions in Europe that have momentum as one of the award criteria where we see that coming fast to the grid with a certain supply chain is something that has given a positive impact on the awards [indiscernible], and that's something we like to see because it's also something that is playing both in the direction of us as a company, but also for our clients. And we do believe that, as I said already, that we are in a very strong situation at the moment, the 2 very strong years ahead of us here but '26 and '27, '28, that is as we talked about during the annual report presentation and then at '29 where we see a lot of interesting stuff that we are currently discussing with clients. So then we come into the next decade. And in the next decade, I think that the number of projects we see in the various years there, whether you look at the various consultant reports or whether we talk to the clients, we can see that there is a very, very significant amount of projects that needs to be installed as we move into the next decade. And that is what we are trying to prepare for together with our clients to make sure that we at least have a solution to what our clients need from us. And we also see the projects that previously were uncertain or projects that were delayed. They are now back with a firm time line and will be also tendered in the various rounds that we see across Europe. So all in all, I think we are moving into positive territory with also the utilities saying that it looks like a very strong comeback for offshore wind in Europe in the coming years. So I think that all in all, also walks around still move forward and still something that we are waiting to see. The impact for -- but I think that it's really something where we believe that there are some clients that are lined up to take an award in the U.K. around 8. Next, please. We still believe in what we have discussed in the previous presentations regarding supply and demand. It is driven by the factors like increased outbuild. As we have seen from North Sea summer various indarounds across Europe. I think it's also important that not everything is as it seems to be, and I think that we have seen examples of that yesterday where there was announcements from Germany that maybe were over interpretated by some and then we corrected later during the day. And I think that, that is the situation we and an offshore win, very small changes create a lot of noise, but sometimes it's important to read what's in the fine print of these announcements, but we believe that the client demand imbalance is certainly present both on average, but also if you look especially into the next decade, and also, as I said, driven by new projects that are coming, but also driven to a certain degree for the demand from other areas, in particular, O&M, that is taking some demand -- that has some demand that takes on supply away, but also some of the vessels that are simply falling out of the market due to age. And that is something that we see very, very clearly. So we executed a successful private placement where we raised around EUR 175 million, and we believe that, that really unlocks the potential for us to go ahead with the 2 proposed [indiscernible] and the acquisition of Scout protection vessel. And why did we do that? We have soon to lots of investors since and thanks for all the support from the investors we were massively oversubscribed on the deal and is really grateful for the support we see in the market. We believe in a structural vessel under supply. And we believe that with the delivery window, we have decided for that we will be prepared for a very strong market uptick when these vessels deliver. And we can already see now that our clients are coming to us for these vessels because they are featuring something that nobody else can offer at this stage. We believe that the experience we have with delivering vessels and also the relationship we have built up with the whole supply chain on the vessels, but also the shipyards have given us an access to a very, very competitive pricing model on these vessels, which is, of course, incredibly important when you have to live with them for 25 years after delivery. We also are looking into the star protection assets, as we have already discussed. And for us, it's really acetic enabler, but it's also something where we, to a very large extent, will be our own client. We will be offering this product to our clients as part of the foundation installation, and we also believe that, that will also be a derisking of our foundation projects because we do not become solely depending on other companies providing this service to us or to our clients. And we believe that all in all, that is a better strategy both for us and for our clients. And I would also like to say in this forum that the decision to go into that area is a decision that has been taken together with our clients, a desire for us to be playing a role in this space. And hence, we also expect we will soon be able to announce utilization on [indiscernible] vessel when the whole process towards the vessel has been finalized. And I think that -- all in all, the additional assets will allow us to continue to be flexible and have an integrated solution for our clients, which should all in all, allow capital to get a higher than first share of the market but also something that we believe is driving a premium when we are executing a project because we are able to give the client of flexibility, but also redundancy that we believe is pretty unique for our industry. And in terms of how the market looks like, we -- in this presentation are just showing how the whole market is looking, not discounting anything in terms of capability or efficiency but have added the 2 T-Class vessels as potential vessels to be constructed on top of the fleet and and are yet again manifesting being the largest company of our kind in the industry with a very, very solid asset base that is in very, very high demand for the clients. So all in all, as Peter said, and as I said, a quarter that has performed as we expected, and we have continued to build the company for a future that we believe will be very, very busy. So key investment highlights, as we already talked about large and most capable versatile fleet, which really means redundancy for the clients. And redundancy means a lot. If we look at where clients historically had issues on their product, it's really when the redundancy is not existent. And that leads me to the next point with strong relationship with our clients. I am arguing that we have very strong relations. We are constantly in touch with our clients, make sure that they get the service from us that they expect, and we are always trying to be proactive and helping when something is not going to plan. And we have a leading industry position. As I said, we believe that, that will lead to a higher than fair share of market. We are working globally and we can work everywhere, and we also now have experience in working in every region where offshore wind is currently playing a role. We believe in a structured undersupply and an increasing market demand. And all in all, we are building the fleet to handle that and to make sure that we return maximum value to our investors. Very strong track record and backlog and a backlog that we will continue to build over the coming quarters. And with that said, I think that we are going into the Q&A.

[Operator Instructions] Our first question is from Jamie Franklin from Jefferies.

Firstly, I just wanted to on utilization and how to think about the rest of the year. Is it fair to assume a sort of similar profile that we saw in 2025 with utilization ramping up with a similar sort of magnitude in 2Q revue? And maybe given that we're now halfway through the second quarter, are you able to give a bit more clarity on the kind of a range of utilization we might expect? Or if there are any specific factors that would result in 2Q vessel utilization being lower year-on-year?

I think that you're right in your first statement that we expect that utilization is coming up in the following quarters of this year, which is also given by the fact that we maintain our guidance and with the Q1 being as per expectation. So we are completely in line with that. We can also say that Q1 has been defined very much by vessels being swapped around, being in dry dock and preparing for projects. And that is work that has been done now, and we only have very little of that left for the remainder of the year. So hence, we believe that the utilization will be strong for the remainder of the year.

And then maybe thinking about cash flow for the remainder of 2026. I believe most of the remaining CapEx this year is obviously during the third quarter with the final installment on wind days. So I just wanted to confirm that and whether there's any additional CapEx to think about through the remainder of this year, please?

Yes, definitely, there is this and we also have an installment on this year on the CapEx around EUR 90 million. And then we expect also to sign the large contract on the T-Class business this year. And then we also need to pay the first installment that we don't know exact, but it could be to the tune of EUR 110 million or something for both business. So that is the main components that we have in CapEx, of course, and there's the also some on Keothat will be finalized, but most of that was in Q1. So we ran very little rest of the year on that and then the there will also be something on base project. So that is the run through of that.

Okay. Very helpful. And then finally, you touched on Wind Apex and the potential for early delivery loss results, you said it could be up to 1 month early. So is the -- is that still the time frame you're sort of thinking about? And would there be any additional cost to the yard associated with early delivery? And if so, is that expected to be funded by the clients?

Yes. So it's correct. We expect that the Wind Apex is now delivering towards the end of April, very early start of May. And that is already confirmed and signed with the shipyard. And there is a small associated cost with that. That is being part of the project negotiation with the client, yes, that's correct.

[Operator Instructions] We appear to have no further questions at this time. Thank you so much for your participation. I will now hand the floor back to Mikkel Gleerup for any closing remarks.

Thank you very much for listening in on this Q1 presentation. We are looking forward to a year that will very much be defined by execution and also the assets that we have discussed since the private placement. Thanks for the support from every investor that are supporting us. We are looking forward to a very strong year 2026. Thank you.