DEME on Tuesday reported a record-high EBITDA margin of 21.9% in the first half of 2025, up from 18% a year earlier, as strong results from its Offshore Energy unit lifted earnings despite weaker performance in dredging and environmental activities, the company said in its half-year report.
EBITDA rose 35% year over year to €464 million, while EBIT increased 49% to €223 million.
Net profit grew 27% to €179 million from €141 million in the first half of 2024. Earnings per share were €7.08, compared with €5.58 a year earlier.
Turnover rose 10% to €2.1 billion, marking a second consecutive semester above that level.
Offshore Energy drove the increase with a 27% rise to €1.14 billion, supported by activity in the United States, Taiwan and Europe.
Dredging & Infra revenue fell 4% to €948 million and Environmental revenue declined 19% to €142 million.
The Offshore Energy segment posted an EBITDA margin of 31.4%, up from 18.3% last year, reflecting vessel utilization, project execution and nonrecurring income from a cancellation fee.
Dredging & Infra recorded a margin of 12.3%, down from 19.1%, after adverse results on a marine infrastructure project in Belgium. Environmental reported a 15.2% margin, compared with 13.4% a year earlier.
The order book stood at €7.5 billion at the end of June, compared with €7.6 billion a year earlier and €8.2 billion at the end of 2024.
Europe accounted for 76% of the backlog, while the Americas dropped to 10% from 16% a year earlier.
Investments excluding acquisitions totaled €141 million, mainly for fleet extensions and maintenance.
In April, DEME completed the €900 million acquisition of Norwegian offshore wind contractor Havfram, paying €537 million in the second quarter.
The deal added about €530 million to the order book and includes two wind turbine installation vessels under construction, scheduled for delivery in late 2025 and early 2026.
Free cash flow excluding the Havfram deal was positive €123 million, compared with €278 million in the same period last year. Including the acquisition, free cash flow was negative €414 million.
Net financial debt stood at €418 million, compared with €352 million a year earlier. Total cash was €709 million, down from €853 million at the end of 2024 but higher than €509 million a year earlier.
By segment, Offshore Energy advanced projects in the U.S., including Dominion Energy’s Coastal Virginia Offshore Wind project and Vineyard Wind, resumed work on Empire Wind 1 after a temporary stop-work order, and continued developments in Taiwan, France, the United Kingdom and Poland.
Dredging & Infra progressed on the Princess Elisabeth Island project in Belgium, the Oosterweel Connection, the Fehmarnbelt Fixed Link between Denmark and Germany, and port works in France and Italy.
Environmental continued long-term remediation and dike reinforcement projects in Belgium and the Netherlands and prepared for the Schiphol remediation project scheduled for 2026.
DEME said it expects full-year 2025 turnover to remain at least in line with 2024 and now anticipates an EBITDA margin slightly above 20%.
Capital expenditure is projected at about €300 million, excluding the Havfram acquisition and vessel deliveries.
Source :
https://www.investing.com/news/earnings/deme-profit-jumps-27-as-offshore-energy-pushes-margins-to-record-high-4210088
