DEME 1H 2025 presentation: Record profitability leads to raised guidance

Introduction & Market Context

DEME Group NV (DEME) presented its half-year 2025 results on August 26, revealing record profitability that prompted management to raise its full-year EBITDA guidance. The marine engineering specialist reported strong performance across its segments, with Offshore Energy emerging as the standout contributor. The company’s stock closed at €134.20 on August 25, down 3.59% ahead of the results announcement.

Executive Summary

DEME delivered exceptional first-half results, with turnover surpassing the €2 billion mark to reach €2.1 billion. The company achieved record profitability with EBITDA increasing to €464 million and an impressive EBITDA margin of 21.9%. Net profit reached €179 million, compared to €141 million a year ago, representing a 27% year-over-year increase.

"I want to thank the DEME team for their sustained strong operational performance across projects worldwide. Despite market instability, we delivered for the second consecutive semester more than 2 billion euros in turnover and over 400 million euros in EBITDA," management stated in the presentation.

As shown in the following summary of key financial metrics:

Detailed Financial Analysis

DEME’s financial performance showed significant improvement across most metrics. The company’s order book remained healthy at €7.5 billion, slightly down from €7.6 billion a year ago. Turnover grew by 10% year-over-year, while EBITDA and EBIT grew at faster rates of 35% and 49% respectively, demonstrating improved operational efficiency.

The detailed financial highlights reveal the extent of DEME’s profitability improvements:

The company’s cash position and investments reflect its strategic focus on growth. DEME reported total cash of €709 million as of 1H25, with a net financial debt position of €418 million, compared to a net cash position of €91 million at the end of 2024. This shift primarily reflects the strategic acquisition of Havfram, which strengthens DEME’s offshore wind footprint.

The company’s order book provides solid visibility for future performance, with €1.94 billion expected to be executed in the second half of 2025 and €2.49 billion in 2026. Europe remains DEME’s primary market, accounting for more than 50% of both the order book and current turnover.

DEME’s turnover has doubled over the past five years, demonstrating consistent growth and market expansion:

Segment Performance

DEME’s operations are divided into four segments: Offshore Energy, Dredging & Infra, Environmental, and Concessions. The Offshore Energy segment emerged as the primary growth driver, with revenue increasing by 27% year-over-year to €1.14 billion. This segment also delivered the highest profitability with an EBIT of €232 million.

The following breakdown illustrates the performance of each segment:

The Offshore Energy segment’s exceptional performance is highlighted in its dashboard:

The Dredging & Infra segment, traditionally DEME’s core business, showed relatively stable turnover but experienced a decline in EBITDA margin to 12%. Fleet utilization was lower year-over-year due to scheduled dockings and notably lower cutter utilization.

The Environmental segment delivered a turnover of €142 million with work on long-term and complex remediation and high water protection projects in Belgium and the Netherlands. Its EBITDA margin improved to 15% from 13% a year ago.

Strategic Initiatives

DEME continues to invest in its fleet capabilities, with the Norse Wind newbuild project reaching a significant milestone with the successful completion of its full height jacking test in August. This investment supports the company’s growing presence in the offshore wind sector.

The strategic acquisition and integration of Havfram represents a significant move to strengthen DEME’s offshore wind footprint. This acquisition aligns with the company’s focus on renewable energy and supports its ESG initiatives.

On the ESG front, DEME is focusing on transitioning to renewable energy and developing the most efficient fleet in the sector. The company received an HR Ambassador award, reflecting its commitment to attracting and retaining top talent, and maintains a strong safety focus with its "think before you lift" campaign.

Forward-Looking Statements

Based on the strong first-half performance, DEME has raised its guidance for the full year. The company now expects full-year turnover to be at least in line with 2024 and has increased its EBITDA margin guidance to slightly exceed 20%. Capital expenditure is reaffirmed at approximately €300 million for the year.

The company’s outlook remains positive, supported by its healthy order book and strong performance in the Offshore Energy segment. While market instability was mentioned, DEME appears well-positioned to navigate these challenges with its diversified business model and strategic investments in growth areas like offshore wind.

Full presentation:

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