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Investing.com -- Shares of DEME Group NV (EBR:DEME) rose more than 4% on Tuesday after the company reported stronger-than-expected first-half results and raised its profit margin outlook for 2025, driven by growth in its Offshore Energy division.
Revenue in the first half of the year increased 10% to €2.18 billion, 4% ahead of consensus estimates of €2.04 billion.
Offshore Energy revenue grew 27%, while Dredging & Infra fell 4% and Environmental declined 19%.
Earnings before interest, taxes, depreciation and amortization rose 35% to €464.3 million, exceeding consensus expectations of €360.3 million by 29%.
The EBITDA margin reached 21.9%, up 394 basis points, supported by project planning and execution in Offshore Energy.
The order book was stable at €7.52 billion, equal to 1.7 times annualized revenues, after order intake decreased 27% to €1.44 billion. The total included €530 million linked to the acquisition of Havfram.
DEME reported free cash usage of €413.8 million, which included €537 million related to the Havfram purchase.
The acquisition totals €900 million. Net debt stood at €418.5 million, equal to 0.5 times EBITDA, compared with €351.8 million in the first half of 2024.
For the full year, DEME confirmed guidance for turnover to remain at least in line with 2024. The company said it now expects its EBITDA margin to slightly exceed 20%, compared with its earlier view for a margin at least stable at 18.6%.
Boskalis, DEME’s peer that is no longer listed, also reported higher results. First-half EBITDA increased 40% to €748 million, with revenue up 14% to €2.35 billion.
The EBITDA margin rose 5 percentage points to 31.9%, reflecting higher vessel utilization across its divisions.
Boskalis said Offshore Energy posted significantly higher results while noting exposure to geopolitical and macroeconomic conditions and the weaker U.S. dollar.
DEME completed the €900 million acquisition of Norwegian offshore wind infrastructure company Havfram, which includes two next-generation wind turbine installation vessels scheduled for delivery in the fourth quarter of 2025 and early 2026.
The vessels are already contracted as of the second half of 2026, backed by an order book of €530 million.
DEME shares have declined 3% so far this year, compared with a 10% gain for the EuroStoxx.