Cadeler (CDLR) Q1 2026 earnings review
Fleet Expansion Drives Revenue Surge, But Interest Expenses Sink the Bottom Line
Cadeler successfully translated its fleet expansion (from 7 to 10 vessels) into a 90% YoY revenue jump to EUR 125M and a near-doubling of EBITDA to EUR 47M. However, the operational scaling was overshadowed by a reversal on the bottom line: net income flipped from a EUR 1.8M profit a year ago to a EUR 7.0M loss. This profit contraction was driven entirely by a surge in financial expenses (from EUR 2M to EUR 24M), as borrowing costs for delivered vessels are now expensed rather than capitalized. Additionally, unadjusted utilization fell to 47.6% due to transit and upgrade times for newly integrated vessels. Management reaffirmed FY26 guidance, projecting continued massive top-line growth.
🐂 Bull Case
EBITDA nearly doubled YoY to EUR 47M, proving that Cadeler can maintain strong operating margins (38%) even while absorbing the costs of integrating three new vessels into the active fleet.
The contract backlog remains formidable at EUR 2.7 billion, with 82% already having secured Final Investment Decisions (FID). Nearly EUR 1 billion is set to be realized within the next 12 months.
🐻 Bear Case
As the CapEx cycle peaks and vessels are delivered, massive borrowing costs are hitting the P&L. Financial expenses jumped 1,067% YoY to EUR 24.2M, single-handedly driving the company into a net loss.
Unadjusted fleet utilization dropped to a highly inefficient 47.6%. Transit times, dry-docking, and vessel upgrades are taking a heavy toll on the fleet's time-to-revenue.
⚖️ Verdict: ⚪
Neutral. Top-line execution is flawless and the macro thesis remains intact, but the reality of running a highly levered, capital-intensive fleet is hitting the P&L. Investors must recalibrate earnings expectations to account for the new normal of EUR ~24M in quarterly finance costs.
Key Themes
P&L Finance Costs Surge as CapEx Capitalization Ends
As telegraphed by management in late 2025, borrowing costs for new vessels have shifted from capitalized CapEx to the P&L upon delivery. Financial expenses skyrocketed to EUR 24.2M in 26Q1 from EUR 2.1M a year ago. This structural change in expense recognition directly caused the EUR 7M net loss despite an otherwise robust operating profit of EUR 7.8M.
Utilization Drag from Fleet Integration
Unadjusted utilization decelerated sharply to 47.6% from 55.3% a year ago. Management cited long transit periods for Wind Ally and Wind Mover, upgrades for Wind Keeper, and scheduled dry-docking for Wind Orca. While adjusted utilization remained relatively stable at 77.7%, the sheer volume of 'planned off-hire' time emphasizes the operational friction and downtime inherent in rapidly scaling a global fleet.
Vessel OPEX Creeping Higher
Vessel OPEX per day is decelerating profitability, rising to EUR 40,837 from EUR 36,889 in 25Q1. Management attributed the 10% increase to temporary project preparation costs and a small number of one-off items. This requires monitoring to ensure cost-control is maintained as the fleet scales.
Hornsea 3 Execution Validation
The highly complex, full-scope Hornsea 3 foundation project is moving forward effectively. Wind Ally and Wind Orca have completed their first round-trips and fully commissioned the first monopiles. Validating this proof of concept in live operations is critical for Cadeler's strategic shift from a simple day-rate charter model to integrated Transport & Installation (T&I) delivery.
Nexra O&M Platform Gaining Traction in APAC
The aftermarket service platform 'Nexra' secured significant new firm contracts during the quarter: an O&M campaign in Taiwan (EUR >20M), a second Taiwan campaign for Wind Maker, and a campaign in Japan for Wind Zaratan. This validates the strategic pivot to improve utilization between major installations and lock in recurring aftermarket revenue.
Macro: Structural Undersupply Driving Fleet Expansion
Management reiterated strong conviction in an impending structural undersupply of capable offshore wind vessels toward the end of the decade, noting that zero industry newbuilds have been ordered since Q2 2024. This macro thesis supported Cadeler's successful EUR 175M private placement in March to fund two new T-class newbuilds (delivery 2030/2031) and a scour protection vessel.
Other KPIs
Accelerating from EUR 20.4 million in 25Q1. This growth was driven primarily by the conversion of contract assets into cash, demonstrating healthy working capital dynamics as top-line revenue scales.
Stable. The backlog remains incredibly robust with 82% of projects having secured a Final Investment Decision (FID). Over EUR 960 million of this backlog is slated for execution within the next 12 months, providing exceptional near-term earnings visibility.
Accelerating from EUR 1.16 billion a year ago. The company currently holds EUR 124.5M in current debt and EUR 1.46B in non-current debt. Management notes the CapEx program remains fully funded with strong bank interest.
Guidance
Stable. Guidance remains unchanged. The midpoint of EUR 899M implies a massive 45% YoY growth over FY25's EUR 620M, driven by full-year contributions from the expanded 10-vessel fleet and the intensive ramp-up of the Hornsea 3 project.
Stable. Guidance remains unchanged. The midpoint of EUR 465M implies a ~9% YoY growth over FY25's EUR 425M. The significantly slower implied EBITDA growth (+9%) relative to revenue growth (+45%) highlights the margin dilution expected as lower-margin foundation T&I projects become a larger part of the mix.
Key Questions
Finance Cost Run-Rate
With EUR 24M in financial expenses in Q1 alone due to the end of CapEx capitalization for delivered vessels, what is the expected quarterly run-rate for finance costs for the remainder of 2026, and how does this impact your deleveraging targets?
Utilization Normalization
Unadjusted utilization fell to 47.6% due to transit and fleet upgrades. When do you expect the fleet integration friction to subside, and what is your target unadjusted utilization rate for H2 2026?
Vessel OPEX Inflation
Vessel OPEX per day rose 10% YoY to EUR 40,837 due to 'project preparation costs'. Are these costs primarily tied to the complex Hornsea 3 mobilization, and should we expect daily OPEX to revert to the ~EUR 36,000 range soon?