Cadeler, a leading offshore wind vessel company, is executing a major fleet expansion and reporting strong operational and financial performance, driven by high demand for its advanced installation vessels and full-scope capabilities, despite anticipating a temporary market slowdown in the late 2020s.

Fleet Expansion and Increased Utilization

The company is more than doubling the size of its fleet through a significant shipbuilding program. Its fleet grew from five to nine vessels in the first nine months of the year and is projected to reach a total of 12 vessels by 2027. This expansion contributed to a soaring fleet utilization rate, which reached 92% in the third quarter against a year-to-date average of 75%, a rate considered "very good."

New Vessels and Expanded Operational Scope

Cadeler has recently taken delivery of three newbuild wind turbine installation vessels (WTIVs)—Wind Maker, Wind Pace, and Wind Ally—and has also acquired and upgraded a vessel specialized in operations and maintenance, the Wind Keeper. A key development is the expansion of the company's operational scope. The Wind Ally is preparing to commence Cadeler's first full transportation and installation (T&I) campaign for foundations at the Orsted Hornsea 3 project in the UK North Sea, marking a strategic move beyond its traditional focus on turbine installation.

Market Outlook and Contract Wins

Despite the fleet growth, the company anticipates a dip in offshore wind construction activity for 2027 and 2028, citing missed auction rounds in key European markets and the postponement of the Hornsea 4 project. However, Cadeler expresses confidence in maintaining high utilization rates. This confidence is bolstered by recent contract awards, including two new contracts worth a total of €500 million for full-scope T&I work at an unnamed offshore wind farm. Management highlights strong underlying demand for advanced assets and a high willingness to pay among clients who face a shortage of suitable vessels.

Financial Performance and Government Support

Cadeler reported robust financial results for the first nine months of the year, with a net profit of €232 million, a substantial increase from €28 million in the same period the previous year. Revenue totalled €443 million, up 178% year-on-year. This growth was driven by new vessels entering service and was further boosted by a €100 million termination fee received after the cancellation of a long-term contract for a WTIV intended for the postponed Hornsea 4 project. The company also expressed belief in the capacity of European governments to support the industry through policy adjustments, citing recent positive tendering system revisions in Denmark and opportunities in the UK, Germany, and the Netherlands.