DEME Group NV
XBRU:DEME
DEME Group NV
DEME Group NV, rooted in Belgium and with a rich history dating back to the mid-19th century, has cemented its reputation as a global leader in the dredging, land reclamation, and marine infrastructure industry. At the heart of DEME's operations is its ability to engage in complex engineering projects that shape coastlines and waterways worldwide—everything from deepening ports and harbors to constructing offshore wind farms. The company's extensive fleet of specialized vessels, capable of performing sophisticated tasks, is central to its business model. These assets, combined with DEME’s engineering prowess and environmental commitment, enable it to undertake massive projects that require precision and expertise, whether it’s reclaiming new land from the sea or ensuring navigable waters for global shipping.
DEME makes money through a combination of contract work on infrastructure development and maintenance projects. This involves bidding for government and private sector contracts, where the company delivers end-to-end solutions encompassing project design, implementation, and operational services. Additionally, DEME has diversified its portfolio to capture emerging opportunities in the offshore energy sector, especially through its subsidiary dedicated to renewable energy solutions. By leveraging technological innovation and sustainable practices, DEME not only enhances its revenue streams but also mitigates the environmental impact of its operations, appealing to a broader clientele invested in eco-friendly development. This strategic balancing act between traditional marine engineering and forward-thinking energy solutions illustrates how DEME remains a pivotal player on the international stage.
DEME Group NV, rooted in Belgium and with a rich history dating back to the mid-19th century, has cemented its reputation as a global leader in the dredging, land reclamation, and marine infrastructure industry. At the heart of DEME's operations is its ability to engage in complex engineering projects that shape coastlines and waterways worldwide—everything from deepening ports and harbors to constructing offshore wind farms. The company's extensive fleet of specialized vessels, capable of performing sophisticated tasks, is central to its business model. These assets, combined with DEME’s engineering prowess and environmental commitment, enable it to undertake massive projects that require precision and expertise, whether it’s reclaiming new land from the sea or ensuring navigable waters for global shipping.
DEME makes money through a combination of contract work on infrastructure development and maintenance projects. This involves bidding for government and private sector contracts, where the company delivers end-to-end solutions encompassing project design, implementation, and operational services. Additionally, DEME has diversified its portfolio to capture emerging opportunities in the offshore energy sector, especially through its subsidiary dedicated to renewable energy solutions. By leveraging technological innovation and sustainable practices, DEME not only enhances its revenue streams but also mitigates the environmental impact of its operations, appealing to a broader clientele invested in eco-friendly development. This strategic balancing act between traditional marine engineering and forward-thinking energy solutions illustrates how DEME remains a pivotal player on the international stage.
Record Profitability: DEME delivered record first-half profitability, with EBITDA up 35% year-on-year and EBITDA margin reaching 21.9%, driven by strong offshore energy performance.
Revenue Growth: Turnover rose 10% to EUR 2.1 billion, surpassing EUR 2 billion for the first time, fueled by a 27% revenue increase in Offshore Energy.
Offshore Energy Segment: Offshore Energy was the standout segment, delivering a 31% EBITDA margin, benefiting from high fleet utilization, solid project execution, and one-off gains.
Order Book Stable: Order book remains strong at EUR 7.5 billion, including the newly acquired Havfram backlog, and management sees no major concerns with order intake or pipeline.
Upgraded Outlook: Management now expects full-year EBITDA margin to slightly exceed 20% and turnover to be at least in line with 2024, raising previous margin guidance.
CapEx & Acquisitions: CapEx for the first half was EUR 141 million (excluding the Havfram acquisition), with full-year CapEx still guided at EUR 300 million, excluding Havfram.
One-Off Items & Project Risks: Results included one-off gains (Sea Challenger sale, US project cancellation fee), but also further losses on a large Belgian marine project, which management believes are now fully provisioned for.
Havfram Integration: Havfram acquisition and the upcoming delivery of two new vessels are progressing well, expected to contribute meaningfully from 2026 onward.
