Negative Points

• Order book declined to EUR7.1 billion from EUR7.5 billion a year ago, with lower visibility for 2027 volumes.

• Offshore Energy EBITDA fell EUR36 million year-over-year, partly due to a one-off cancellation fee and asset sale gain in the prior year.

• Fleet utilization in Offshore Energy dropped to 70% (18.2 weeks) due to new vessel mobilizations, relocations, and scheduled repairs.

• Environmental segment revenue and EBITDA margin declined to EUR131 million and 11%, respectively, due to project phasing.

• Geopolitical uncertainty, particularly in the Middle East and US, is delaying investment decisions and limiting order intake in those regions.

Q & A Highlights

Q: What are the main drivers and building blocks behind the resilient profitability outlook for 2027? A: Luc Vandenbulcke (CEO) explained that the 2027 outlook is based on supportive market fundamentals, healthy tendering activity, and a good pipeline of opportunities. He noted that while the US offshore wind projects, which contributed strongly to turnover due to Jones Act requirements, are completing, the market is being rapidly replaced by European and Asian projects. Although these projects generate lower turnover due to less logistics, they maintain a good fleet occupation and stable EBITDA. The Dredging & Infra segment is expected to remain robust with solid results, and the Environmental and Concessions segments will continue to contribute their fair share to group profitability.

Q: How do you view Cadeler's acquisition of Menck, and how will you secure your hammer demand for the next 10 years? A: Luc Vandenbulcke (CEO) stated that DEME does not see this transaction materially affecting its ability to access the equipment market. He emphasized DEME's belief in horizontal integration, offering full packages to clients through partnerships and framework agreements with the supply chain. The company uses a diversified approach to foundation installation, including impact hammering, vibratory hammers, suction pile technology, and drilling, with strong partnerships like Herrenknecht for drilling and a participation in GBM. Securing foundation installation techniques for the next decade is not a concern, as it is managed through normal market tendering and long-term partnerships.

Q: Can you confirm the massive progress of IQIP's new hammering technique (EQ-Piling or PULSE Piling) and what it will mean for future installation vessel plans? A: Luc Vandenbulcke (CEO) confirmed that DEME supplied a vessel for the tests but deferred detailed results to IQIP due to NDA clauses. He acknowledged the demand for noise reduction measures and stated that DEME is looking at improving solutions with IQIP. He noted that DEME is perfectly able to handle the new tool and will use it if it demonstrates both noise reduction and speed improvements, but it does not significantly impact current installation plans.

Q: Why is there no material impact on profitability expected from the ongoing lower order intake in the Offshore Energy division? A: Luc Vandenbulcke (CEO) clarified that the lower order intake is a timing effect. The large US projects, which generated higher turnover due to Jones Act requirements and logistics, are being replaced by European and Asian projects. While these new projects have lower turnover, they maintain good fleet occupation and stable EBITDA, resulting in a stable profitability profile for the segment.

Q: Do you agree with Boskalis's more negative view on the outlook due to geopolitical developments impacting market conditions and investment decisions? A: Luc Vandenbulcke (CEO) responded that DEME's message is based on its own visibility and product mix, which differs for every company. He pointed to DEME's existing order book, project pipeline, fleet deployment, and ongoing tender activities as the basis for its guidance. He reiterated that DEME's view is specific to its own activities and market position.

Q: Can you provide more color on the contribution of joint ventures and associates, and why don't you guide on net earnings? A: Stijn Gaytant (CFO) explained that the EUR59 million contribution from JVs and associates is high, with EUR10 million related to concessions. He noted that these contributions are prone to project phasing and should not be expected to repeat at the same level in the second half. Regarding guidance, he stated that DEME stays with turnover and EBITDA because financial results and currency fluctuations can have a big impact and are not always easy to predict.

Q: Are you seeing any signs that macroeconomic uncertainty is slowing down investment decisions on tendered projects? A: Luc Vandenbulcke (CEO) acknowledged that while there is a high volume of tenders and project awards, specifically in the Middle East, clients are hesitating to award projects and are waiting for more stability in the region. However, this is specific to the Middle East, and other regions are progressing normally.

Q: Can you comment on the nonrenewable energy activities and their outlook for the coming years? A: Luc Vandenbulcke (CEO) noted that nonrenewable activities, which include erosion protection for pipelines, decommissioning work, and supporting works for nuclear, saw a decline in turnover contribution to 2% from 9% a year ago. However, he confirmed there is a healthy tendering activity and a pipeline of projects coming to market in this area, indicating opportunities for the coming years.

Q: Can you comment on the working capital improvement and any special effects to consider in H2? A: Stijn Gaytant (CFO) expressed satisfaction with the roughly EUR100 million improvement in working capital, driven by progress on milestone-linked projects and higher advanced payments compared to end of 2025. He noted that working capital is currently around 20% of turnover, in line with the historical average of 19%, and future increases will depend on the intake of new projects.

Q: What is the earnings contribution from Havfram (Norse Wind and Norse Energi) this year, and what is the delta in 2027 versus 2026? A: Stijn Gaytant (CFO) stated that Norse Wind started contributing at the end of Q1 and Norse Energi at the end of Q2. The current contracts are on a day-rate model, resulting in a lower top-line contribution, but profitability remains very attractive. Norse Wind has already finished its first project and is working on its second, contributing as expected.

For the complete transcript of the earnings call, please refer to the full earnings call transcript .