Cadeler A/S (OB): Riding the Offshore Wind Wave
In a nutshell, what I see is a stock whose price declined by 33% from October 2024 to September 2025, despite the fact that the company is now in a much better position, with better ratios, much better revenue, and great value.
Company Overview
Cadeler A/S is a global leader in offshore wind farm installation and maintenance, primarily operating in European markets. Listed on Oslo Børs, the company operates a fleet of 4 jack-up vessels with 8 additional vessels in development, positioning itself to capitalize on Europe's aggressive renewable energy targets.
Market Opportunity
The offshore wind sector is experiencing a lot of growth. 2024 was a record year with 117 GW of new capacity installed globally. The Global Wind Energy Council forecasts 410 GW of new capacity by 2030, representing annual growth rates of 28% through 2029.
Europe's ambitious targets include 42.5% renewable energy by 2030 and 300 GW of offshore wind capacity by 2050, creating a massive addressable market for Cadeler's specialized services.
Financial Highlights
Strong Revenue Growth: Revenue doubled to €249M in 2024 from €109M in 2023, driven by successful project execution and the Eneti merger. Latest TTM revenue reached €465M (277.9% YoY growth). Q2 2025 revenue grew by 242%, but despite that, the stock price is trending down.
Record Backlog: Order backlog increased to €2.5B in 2024 from €1.7B in 2023, providing strong revenue visibility with key contracts including Baltica 2, Bałtyk 2/3 (Poland), US, and Taiwan 4.
Profitability Surge: EPS grew 409.5% YoY to €0.32 in Q2 2025, with a 3-year CAGR of 61.9%.
2025 Guidance: Management projects €485-525M revenue with €278-318M EBITDA.
Valuation Metrics
P/E Ratio: 6.7 (significantly compressed from the previous year)
P/B Ratio: 1.1 (37.1% decrease YoY)
Revenue CAGR (5-year): 87.6%
The combination of low valuation multiples and exceptional growth suggests potential undervaluation.
Key Risks
My Investment Thesis
Cadeler is an opportunity in the rapidly expanding offshore wind installation market. They have a strong order backlog and prospective contracts, fleet expansion plans, and attractive valuation metrics; the company appears well-positioned to benefit from Europe's energy transition. I see it as a mix of value and growth investing.
I see Cadeler as a medium to long-term investment. I think the upside potential is anywhere between +50% and +100% from the current price.
I will allocate around 1% of my wealth into this stock.
Quick note: I'm just sharing my journey - not financial advice! 😊
In a nutshell, what I see is a stock whose price declined by 33% from October 2024 to September 2025, despite the fact that the company is now in a much better position, with better ratios, much better revenue, and great value.
Company Overview
Cadeler A/S is a global leader in offshore wind farm installation and maintenance, primarily operating in European markets. Listed on Oslo Børs, the company operates a fleet of 4 jack-up vessels with 8 additional vessels in development, positioning itself to capitalize on Europe's aggressive renewable energy targets.
Market Opportunity
The offshore wind sector is experiencing a lot of growth. 2024 was a record year with 117 GW of new capacity installed globally. The Global Wind Energy Council forecasts 410 GW of new capacity by 2030, representing annual growth rates of 28% through 2029.
Europe's ambitious targets include 42.5% renewable energy by 2030 and 300 GW of offshore wind capacity by 2050, creating a massive addressable market for Cadeler's specialized services.
Financial Highlights
Strong Revenue Growth: Revenue doubled to €249M in 2024 from €109M in 2023, driven by successful project execution and the Eneti merger. Latest TTM revenue reached €465M (277.9% YoY growth). Q2 2025 revenue grew by 242%, but despite that, the stock price is trending down.
Record Backlog: Order backlog increased to €2.5B in 2024 from €1.7B in 2023, providing strong revenue visibility with key contracts including Baltica 2, Bałtyk 2/3 (Poland), US, and Taiwan 4.
Profitability Surge: EPS grew 409.5% YoY to €0.32 in Q2 2025, with a 3-year CAGR of 61.9%.
2025 Guidance: Management projects €485-525M revenue with €278-318M EBITDA.
Valuation Metrics
P/E Ratio: 6.7 (significantly compressed from the previous year)
P/B Ratio: 1.1 (37.1% decrease YoY)
Revenue CAGR (5-year): 87.6%
The combination of low valuation multiples and exceptional growth suggests potential undervaluation.
Key Risks
- Project Execution: Permitting delays and cancellations (e.g., Hornsea 4 removal from backlog) can impact revenue visibility.
- Cost Inflation: Rising turbine costs (+10% since 2021) and supply chain constraints could pressure margins.
- Policy Dependency: Growth relies heavily on government subsidies and favorable renewable energy policies, creating regulatory risk.
My Investment Thesis
Cadeler is an opportunity in the rapidly expanding offshore wind installation market. They have a strong order backlog and prospective contracts, fleet expansion plans, and attractive valuation metrics; the company appears well-positioned to benefit from Europe's energy transition. I see it as a mix of value and growth investing.
I see Cadeler as a medium to long-term investment. I think the upside potential is anywhere between +50% and +100% from the current price.
I will allocate around 1% of my wealth into this stock.
Quick note: I'm just sharing my journey - not financial advice! 😊
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.