Half Year 2026 DEME Group NV Earnings Call

August 26, 2026

Carl Vanden Bussche: Good morning, ladies and gentlemen. I am Carl Vanden Bussche, Head of Investor Relations at DEME, and it is my pleasure to welcome you to DEME's H1 2026 earnings call and webcast titled Strong First Half Results, On Track for Another Record Year. Joining me today are DEME's Chief Executive Officer, Luc Vandenbulcke, and our Chief Financial Officer, Stijn Gaytant. Both Luc and Stijn will take you through the presentation, which will be visible on screen during the webcast. Slide 2 briefly outlines the agenda. Luc will kick it off with the exec summary, and Stijn and Luc will then take you through the group's financial performance and the results of our four segments. We will also highlight several key projects before Luc will then conclude with the outlook. After the presentation, we will open the floor for any questions you may have.

Speaker #1: Good morning, ladies and gentlemen. I am Karel van den Bussen, Head of Investor Relations at DEME, and it is my pleasure to welcome you to DEME's half-year 2026 earnings call and webcast, titled "Strong First Half Results on Track for Another Record Year." Joining me today are DEME's Chief Executive Officer, Luc van den Bulke, and our Chief Financial Officer, Stijn Gietzel.

Speaker #1: Both Luc and Stijn will take you through the presentation, which will be visible on screen during the webcast. Slide 2 briefly outlines the agenda: Luc will kick it off with the exec summary, and Stijn and the group’s financial performance and the results of our four segments.

Speaker #1: We'll also highlight several key projects before Luc concludes with the outlook. After the presentation, we will open the floor for any questions you may have.

Speaker #1: So, without further delay, I'll hand it over here to Luc for the executive summary.

Carl Vanden Bussche: Without further delay, I will hand it over here to Luc for the exec summary.

Speaker #2: Thank you, Karel, and good morning to everyone. As you all know, 2026 is a very special year for DEME. We will be celebrating—or we are celebrating—our 150th anniversary.

Luc Vandenbulcke: Thank you, Carl, and good morning to everyone. As you all know, 2026 is a very special year for DEME. We are celebrating our 150th anniversary. I would like to begin by personally thanking our employees, both our current employees, but also our past employees, because their hard work and determination have shaped DEME into the global group that we are today. Their commitment, as you will see, is once again reflected in our performance as we delivered the strongest H1 in DEME's history. Let me now walk you through the key highlights and financial results for the period. Against a backdrop of rapidly evolving market conditions, we delivered more than EUR 2 billion of turnover, and that for the fourth consecutive half year period. At EUR 2.2 billion, DEME delivered its strongest H1 top line performance ever.

Speaker #2: And I would like to begin by personally thanking our employees. Both our current employees, but also our past employees. Because their hard work and determination have shaped DEME into the global group that we are today.

Speaker #2: Their commitment, as you will see, is once again reflected in our performance, as we delivered the strongest first half in DEME's history. Let me now walk you through the key highlights and financial results for the period.

Speaker #2: Against a backdrop of rapidly evolving market conditions, we delivered more than $2 billion of turnover—and that for the fourth consecutive half-year period. At $2.2 billion, DEME delivered its strongest first-half top-line performance ever.

Speaker #2: We also achieved record first-half EBITDA of $466 million, which corresponds to a margin of 21.6%. Net profit reached a record $215 million, which is an increase of 20% compared to $179 million a year ago.

Luc Vandenbulcke: We also achieved record H1 EBITDA of EUR 466 million, which corresponds to a margin of 21.6%. Net profit reached a record EUR 215 million, which is an increase of 20% compared to EUR 179 million a year ago. The order book stood at EUR 7.1 billion. While somewhat below the level reported a year ago, it remains healthy and robust. We continue to see supportive market fundamentals, healthy tendering activity, and a substantial project pipeline. Together, these should help us to keep the order book in good shape. In this anniversary year, I am pleased to say that 2026 is shaping up to be another exceptional year for DEME. Reflecting our strong H1 performance and the visibility we have today, we are raising our guidance for the year. For 2026, we now expect turnover to slightly exceed the 2025 level and the EBITDA margin to stay in line with the 2025.

Speaker #2: The order book stood at $7.1 billion. While somewhat below the level reported a year ago, it remains healthy and robust. We continue to see supportive market fundamentals, healthy tendering activity, and a substantial project pipeline.

Speaker #2: Together, these should help us keep the order book in good shape. And in this anniversary year, I'm pleased to say that 2026 is shaping up to be another exceptional year for DEME.

Luc Vandenbulcke: Together, these should help us to keep the order book in good shape. In this anniversary year, I am pleased to say that 2026 is shaping up to be another exceptional year for DEME. Reflecting our strong H1 performance and the visibility we have today, we are raising our guidance for the year. For 2026, we now expect turnover to slightly exceed the 2025 level and the EBITDA margin to stay in line with the 2025.

Speaker #2: Reflecting our strong first-half performance and the visibility we have today, we are raising our guidance for the year. For 2026, we now expect turnover to slightly exceed the 2025 level, and the EBITDA margin to stay in line with 2025.

Speaker #2: Our brand-new offshore assets, the Northwind and the Northshore Energy, have successfully entered service and are currently executing their first projects, which is reinforcing our position at the forefront of the offshore energy market.

Luc Vandenbulcke: Our brand new offshore assets, the Norse Wind and the Norse Energi, have successfully entered service and are currently executing their first projects, which is reinforcing our position at the forefront of the offshore energy market. In addition to that, we have continued to invest in our dredging fleet. We have ordered a new hopper dredger with a capacity of 22,000 cubic meters, which is expected to be delivered somewhere in 2029. That is it for the highlights. I will now hand over to Stijn, who will walk you through the financial highlights in a bit more detail. Stijn.

Speaker #2: In addition to that, we have continued to invest in our dredging fleet. We have ordered a new hopper dredger with a capacity of 22,000 cubic meters, which is expected to be delivered sometime in 2029.

Speaker #2: So that's it for the highlights. I will now hand over to Stijn, who will walk you through the financial highlights in a bit more detail.

Speaker #2: Stijn.

Speaker #1: Thank you, Luc, and also from my side, a very good morning to everyone. Now, let me walk you through the key highlights of our first half-year performance.

Carl Vanden Bussche: Thank you, Luc, and also from my side, a very good morning to everyone. Now let me walk you through the key highlights of our H1 performance. Our order books stood at EUR 7.1 billion compared to EUR 7.5 billion in the same period last year and EUR 7.6 billion at year-end 2025. The order book continues to provide a healthy visibility. It should also be viewed in the context of the record turnover that we have delivered during the H1 of this year. As such, group turnover was up 2% to almost EUR 2.2 billion. This was driven by the sustained performance of our two largest operational segments, which both saw revenues further increasing. EBITDA stood at EUR 466 million, representing a margin of 21.6%, which is comparable to the previous year.

Speaker #1: Our order book stood at $7.1 billion, compared to $7.5 billion in the same period last year, and $7.6 billion at year-end 2025. The order book continues to provide healthy visibility.

Speaker #1: This should also be viewed in the context of the record turnover that we have delivered during the first half of this year. As such, group turnover was up 2% to almost €2.2 billion, which was driven by the sustained performance of our two largest operational segments, which both saw revenues further increasing.

Speaker #1: Now, EBITDA stood at $466 million, representing a margin of 21.6%, which is comparable to the previous year. This result was driven by the offshore energy segment, which has seen profitability normalize from its peak 2025 levels, as well as a strong rebound in our dredging and infra segment.

Carl Vanden Bussche: This result was driven by the offshore energy segment, which has seen profitability normalize from its peak 2025 levels, as well as a strong rebound in our dredging and infra segment, where the EBITDA margin improved to 22% from 12% a year ago. Depreciation and impairment expenses amounted to EUR 235 million and were pretty much in line with last year. For the H1 of 2026, these included the depreciation of the Norse Wind and the Norse Energi, while last year we had a depreciation level amongst others, driven by an accelerated depreciation of an offshore energy auxiliary asset. As such, EBIT for the period reached EUR 231 million. It represents 10.7% of turnover and is an increase of 3%.

Speaker #1: The EBITDA margin improved to 22% from 12% a year ago. Depreciation and impairment expenses amounted to $235 million and were pretty much in line with last year.

Speaker #1: For the first half of 2026, these include the depreciation of the Northwind and the Northshore Energy, while last year we had a depreciation level, amongst others, driven by an accelerated depreciation of an offshore energy auxiliary asset.

Speaker #1: As such, EBIT for the period reached $231 million, which represents 10.7% of turnover and is an increase of 3%. Net financial results amounted to minus $23 million, compared to minus $9 million in the same period last year.

Stijn Gaytant: Net financial result amounted to -EUR 23 million compared to -EUR 9 million in the same period last year. The delta is partially explained, as you can expect, by the interest component on the EUR 700 million green term loans that we had taken up in 2025 to finance the Havfram transaction. Current taxes and deferred taxes account for -EUR 50 million, which reflects an effective tax rate of 24%, broadly in line with the effective tax rate year-on-year of 23%. A particularly strong contributor this semester was our large portfolio of joint ventures and associates, which generated a contribution of EUR 59 million. It reflects good operational performance and mainly favorable project phasing across several businesses in Japan, Taiwan, and Europe, complemented also by solid results from our concessions activities.

Speaker #1: The delta is partially explained, as you can expect, by the interest component on the $700 million green term loans that we had taken up in 2025 to finance the Hafram transaction.

Speaker #1: Current taxes and deferred taxes account for minus $50 million, which reflects an effective tax rate of 24%, broadly in line with the effective tax rate year-on-year for 2023.

Speaker #1: Now, a particularly strong contributor this semester was our large portfolio of joint ventures and associates, which generated a contribution of $59 million. This reflects good operational performance and mainly favorable project phasing across several businesses in Japan, Taiwan, and Europe, complemented also by solid results from our concessions activities.

Speaker #1: Now, given this strong contribution in the first six months, we do expect a more normalized contribution from the joint ventures and associates in the second half of 2026.

Stijn Gaytant: Now, given this strong contribution in the first 6 months, we do expect a more normalized contribution from the joint ventures and associates in H2 2026. The combination of solid operational execution, strong recovery in dredging and infra, resilient offshore energy performance, and the higher contribution from joint ventures and associates resulted in a net profit increase of 20% to EUR 250 million. This translates in earnings per share of EUR 8.53 compared to EUR 0.08 in H1 2025, which means we continue with DEME's track record of delivering profitability and also creating shareholder value. Now, in relation to balance sheet items, the operating working capital was -EUR 835 million. This compared to -EUR 742 million in the full year 2025.

Speaker #1: Now, the combination of solid operational execution, strong recovery in Dredging and Infra, resilient Offshore Energy performance, and a higher contribution from joint ventures and associates resulted in a net profit increase of 20% to $250 million.

Speaker #1: And this translates into earnings per share of $8.53, compared to $0.08 in the first half of 2025. This means we continue DEME's track record of delivering profitability and also creating shareholder value.

Speaker #1: Now, in relation to balance sheet items, the operating working capital was minus $835 million. This compares to minus $742 million in the full year 2025.

Speaker #1: So, we have had an improvement of $92 million in the last six months. And we had minus $817 million in the first half of 2025.

Stijn Gaytant: So we have had an improvement of EUR 92 million in the last 6 months, and we had -EUR 817 million in H1 2025. So that means around 20% of the turnover that remains well within our historical operating working capital range of approximately 19%. DEME's investment, so excluding financial fixed assets in H1 amounted to EUR 227 million, and they include the final construction payment for the Norse Energi, which we paid beginning of January, project specific investments, lifetime extension of vessels, and also capitalized maintenance and repairs. The investments in H1 2025 were EUR 141 million. Supported by sustained strong operating results, improved working capital, and despite a higher CapEx compared to prior year and a higher payout dividend of EUR 130 million, the free cash flow rebounded to EUR 231 million.

Speaker #1: So that means around 20% of the turnover remains well within our historical operating working capital range of approximately 19%. Now, DEME's investments—so excluding financial fixed assets—in the first half amounted to $227 million, and they include the final construction payment for Northshore Energy, which we paid at the beginning of January, project-specific investments, lifetime extension of vessels, and also capitalized maintenance and repairs.

Speaker #1: Investments in the first half of 2025 were $141 million. Now, supported by sustained strong operating results, improved working capital, and despite a higher capex compared to the prior year and a higher paid-out dividend of $130 million, free cash flow rebounded to $231 million.

Speaker #1: If you compare it with the first half of 2025, if you make an extraction of the Hafram acquisition, that figure was $123 million. Including Hafram, it was minus $440 million free cash flow for mid-2025.

Stijn Gaytant: If you compare it with H1 2025, you make extraction of the Havfram acquisition, that figure was EUR 123 million, including with Havfram, was -EUR 440 million free cash flow mid 2025. Now, taking the aforementioned elements into account, the net financial debt decreased to -EUR 291 million compared to -EUR 418 million in H1 2025 and -EUR 391 million at the end of 2025. As a result, the net financial debt over EBITDA ratio is currently 0.3. It was 0.5 at mid-year 2025. Related to cash and cash equivalents, as of end of June 2026, it stands at EUR 845 million compared to EUR 709 million year over year, and end of 2025 was EUR 846 million. Now, let's take a look at the general overview of the order book.

Speaker #1: Now, taking the aforementioned elements into account, the net financial debt decreased to minus $291 million, compared to minus $418 million in the first half of 2025 and minus $391 million at the end of 2025.

Speaker #1: As a result, the net financial debt over EBITDA ratio is currently 0.3. It was 0.5 at mid-year 2025. With regard to cash and cash equivalents, as of the end of June 2026, the balance stands at $845 million, compared to $709 million year-over-year, and at the end of 2025, it was $846 million.

Speaker #1: Now, let's take a look at the general overview of the order book. Now, at $7.1 billion, DEME's order book remains above the $7 billion threshold for the fourth consecutive year.

Stijn Gaytant: At EUR 7.1 billion, DEME's order book remains above the EUR 7 billion threshold for the fourth consecutive year and continues to provide a healthy visibility for the remainder of the year and a solid foundation for future operations. While the order book is somewhat lower than the higher levels reported during the previous 2 years, this evolution should primarily be seen in the context of strong project execution, and as such, an order to turnover conversion, which contributed to DEME delivering a record H1 turnover. In addition, order intake in offshore wind is currently affected by the timing of investment decisions, while a number of large US offshore wind projects have been successfully completed, and as such, therefore, are running off the order book. I said before, we consider the current order book to be healthy and also very well-balanced.

Speaker #1: And it continues to provide healthy visibility for the remainder of the year, and a solid foundation for future operations. Now, while the order book is somewhat lower than the higher levels reported during the previous two years, this evolution should primarily be seen in the context of strong project execution and, as such, an order-to-turnover conversion, which contributed to DEME delivering a record first half-year turnover.

Speaker #1: In addition, order intake in offshore wind is currently affected by the timing of investment decisions, while a number of large US offshore wind projects have been successfully completed and, as such, are therefore running off the order book.

Speaker #1: As mentioned before, we consider the current order book to be healthy and very well balanced. It is supported by continued demand across all our core markets.

Stijn Gaytant: It is supported by continued demand across all our core markets. That has been achieved despite a limited contribution from both United States and the Middle East, as you can imagine, reflecting the current political and geopolitical environment in those regions. If you look at the geographical breakdown, Europe remains clearly the largest region, representing 80% of the total order book. The exposure to the Americas market declined to 5%, down from 10% on a year-on-year basis, clearly reflecting, as mentioned before, the successful completion of the projects in the US and the somewhat subdued order intake environment. Looking at the order book run-off profile, we continue to enjoy strong visibility for the remainder of 2026. Approximately EUR 2.1 billion scheduled for execution in the H2 of the year, supporting again our confidence in the guidance provided for 2026.

Speaker #1: And it has been achieved despite the limited contribution from both the United States and the Middle East, as you can imagine, reflecting the current political and geopolitical environment in those regions.

Speaker #1: If you look at the geographical breakdown, Europe remains clearly the largest region, representing 80% of the total order book. The exposure to the Americas market declined to 5%, down from 10% on a year-on-year basis, clearly reflecting, as mentioned before, the successful completion of the projects in the US and the somewhat subdued order intake environment.

Speaker #1: Looking at the order book runoff profile, we continue to enjoy strong visibility for the remainder of 2026. With approximately $2.1 billion scheduled for execution in the second half of the year, this again supports our confidence in the guidance provided for 2026.

Speaker #1: Now, for 2027, the order book currently reflects volumes below the level reported in the past two years, and looking a bit further ahead, the volumes scheduled for execution in 2028 and beyond remain broadly consistent with previous years, underlining the continued demand and also the resilience of DEME's project pipeline.

Stijn Gaytant: For 2027, the order book currently reflects volumes below the level reported in the past two years. Looking a bit further ahead, the volume scheduled for execution in 2028 and beyond remain broadly consistent with previous years, underlining the continued depth and also the resilience of DEME's project pipeline. As mentioned earlier, revenue increased by 2% to EUR 2.2 billion. As Luc already mentioned, the highest H1 revenue level ever for DEME's history. Growth was driven by the two largest operational segments. Offshore energy revenues increased 6%. Dredging and infra delivered a further 2% increase, and the two together were more than sufficient enough to compensate for the lower contribution from environmental.

Speaker #1: Now, as mentioned earlier, revenue increased by 2% to $2.2 billion. As Luca already mentioned, this is the highest first half revenue level ever in DEME's history.

Speaker #1: Growth was driven by the two largest operational segments. Offshore energy revenues increased 6%, and dredging and infra delivered a further 2% increase. The two together were more than sufficient to compensate for the lower contribution from environmental.

Speaker #1: Now, if you take a step back, we're talking about 150 years of DEME. It is remarkable that the revenue generated during the first six months of 2026—so, this year—exceeded DEME's total full-year revenue in 2020.

Stijn Gaytant: If you take a step back, and we are talking about 150 years of DEME, it is remarkable that the revenue generated during the first six months of 2026, so this year, exceeded DEME's total full year revenue in 2020. It clearly illustrates not only a significant growth achieved over the recent years, but also our ability to scale the business while maintaining strong profitability levels. Another important characteristic of today's DEME is the diversification in the business portfolio. As you can see from the segment breakdown, the revenue is well spread across our core activities, with offshore energy representing 52% of the turnover and dredging and infra 42%. A balanced earnings platform, which allows us also for different project cycles. When we look at the geographical breakdown, we remain firmly rooted in Europe with more than 60% of the group turnover realized in 2026.

Speaker #1: It clearly illustrates not only significant growth achieved over recent years, but also our ability to scale the business while maintaining strong profitability levels.

Speaker #1: Another important characteristic of today's DEME is the diversification in the business portfolio. As you can see from the segment breakdown, the revenue is well spread across our core activities, with offshore energy representing 52% of the turnover, and dredging and infra accounting for 42%.

Speaker #1: A balanced earnings platform, which also allows for different project cycles. Now, when we look at the geographical breakdown, we remain firmly rooted in Europe, with more than 60% of the group turnover realized in 2026.

Speaker #1: Revenues in the Americas declined as anticipated, and Asia represented 12% of group turnover, compared to 15% in the prior year period. Africa increased its contribution to 9% of group turnover, reflecting continued activity across a number of projects and further supporting the geographical diversification of the group.

Stijn Gaytant: Revenues in Americas declined as anticipated, and Asia represented 12% of the group turnover, compared to 15% in the prior year period. Africa increased its contribution to 9% of group turnover, reflecting continued activity across a number of projects, and further also supporting the geographical diversification of the group. Going to the segments. In the H1 of 2026, the offshore energies order book stood at EUR 3.7 billion, moderating from the 2024 and 2025 peak. This is due to the strong order to revenue conversion and also the timing of the new offshore renewables investments, which are temporarily lagging the roll-off of the US projects. Meanwhile, the offshore energy team secured some new offshore wind projects like Zeevonk in the Netherlands and Oga-Katagami-Akita in Japan. Of course, we also continue to pursue a healthy pipeline of opportunities.

Speaker #1: Now, going to the segments, in the first half of 2026, the offshore energy order book stood at $3.7 billion, moderating from the 2024 and 2025 peak.

Speaker #1: This is due to the strong order-to-revenue conversion, and also the timing of the new offshore renewables investments, which are temporarily lagging the roll-off of the US projects.

Speaker #1: Meanwhile, the Offshore Energy team secured some new offshore wind projects, like Zeevonk in the Netherlands and Katagami in Japan. Of course, we also continue to pursue a healthy pipeline of opportunities.

Speaker #1: Now, with successful execution in the US, Taiwan, and Europe, the segment delivered another strong performance with turnovers of $1.2 billion. Increasing from the $1.14 half 2025.

Stijn Gaytant: Now with successful execution in US, Taiwan and Europe, the segment delivered another strong performance with turnovers of EUR 1.2 billion, increasing from the EUR 1.14 billion H1 2025. As the graph illustrates, offshore energy has been on a strong and sustained growth trajectory over the past five years. This translated into a strong H1 2026 performance, with the segment achieving its highest revenue level ever. One point worth highlighting is that 2% of offshore energy's turnover in the first half was related to non-renewable activities, compared with 9% a year ago. While turnover remains an important metric, it can vary considerably for a similar level of vessel activity depending on project scope, supporting services and also local requirements. As a CFO, I therefore place equal, if not greater emphasis also on profitability.

Speaker #1: Now, as the graph illustrates, offshore energy has been on a strong and sustained growth trajectory over the past five years. This translated into a strong first-half performance in 2026, with the segment achieving its highest revenue level ever.

Speaker #1: $1.12 highlighting is that 2% of Offshore Energy's turnover in the first half was related to non-renewable activities, compared with 9% a year ago. Now, while turnover remains an important metric, it can vary considerably for a similar level of vessel activity depending on project scope, supporting services, and also local requirements.

Speaker #1: Now, as a CFO, I therefore place equal, if not greater, emphasis also on profitability. In that respect, I'm pleased to see that the segment delivered a solid result, reporting EBITDA of $322 million, and maintaining a high EBITDA margin of 27%, supported by disciplined project execution and a continued focus on operational excellence.

Stijn Gaytant: In that respect, I am pleased to see that the segment delivered a solid result, reporting EBITDA of EUR 322 million and maintaining a high EBITDA margin of 27%, supported by disciplined project execution and a continued focus on operational excellence. EBITDA was EUR 36 million below the record level achieved in the H1 2025. However, the prior year result, as you will remember, included a one-off cancellation fee and a gain on the sale of fixed assets. The asset disposal loan, for example, contributed already EUR 17 million to the EBITDA last year. On the right-hand side, you will notice the fleet utilization. It was lower than last year, with an occupancy reaching 18.2 weeks or 70%. It reflects a combination of different factors.

Speaker #1: EBITDA was $36 million below the record level achieved in the first half of 2025. However, the prior year result, as you will remember, included a one-off cancellation fee and a gain on the sale of fixed assets.

Speaker #1: The asset disposal loan, for example, already contributed $17 million to EBITDA last year. And then, on the right-hand side, you will notice the fleet utilization.

Speaker #1: It was lower than last year, with occupancy reaching 18.2 weeks, or 70%. And it reflects a combination of different factors. You have, on the one hand, the entry of Norse Wind and Norse Energy entering the fleet, and starting their first projects, respectively, at the end of Q1 and the end of Q2 of this year.

Stijn Gaytant: You have, on the one hand, the entry of Norse Wind and Norse Energi entering the fleet and starting their first projects, respectively, at the end of Q1 and the end of Q2 of this year. Besides that, you had, for example, the Orion and the Sea Installer, which are relocated from the US East Coast to Europe. In addition, we also had several scheduled repairs of other vessels. For dredging and infra, the order book remained healthy at over EUR 3 billion. Broadly in line with the level reported a year ago and continues also to be supported by a solid tendering momentum, diversified opportunities across multiple geographies. Key contracts were concession for Port of Paranaguá in Brazil, several port-related contracts in Tunisia, India, Indonesia, as well as a range of new projects along the West African coast.

Speaker #1: Then, besides that, you had, for example, the Orion and the Sea Installer, which relocated from the US East Coast to Europe. And, of course, in addition, we also had several scheduled repairs of other vessels.

Speaker #1: Now, for dredging and infra, the order book remained healthy at over €3 billion, broadly in line with the level reported a year ago, and continues also to be supported by a solid tendering momentum and diversified opportunities across multiple geographies.

Speaker #1: Key contracts were the concession for the Port of Paranaguá in Brazil, several port-related contracts in Tunisia, India, and Indonesia, as well as a range of new projects along the West African coast.

Speaker #1: Now, such turnover increased by 2% year over year, showing resilient market demand and also very robust fleet utilization. Now, the most notable development was the significant improvement in profitability.

Stijn Gaytant: As such, turnover increased by 2% year-over-year, showing the resilient market demands and also a very robust fleet utilization. The most notable development was the significant improvement in profitability. The EBITDA margin rebounded to 22%, so a nominal EBITDA contribution of EUR 212 million compared with 12% in the H1 2025. It reflects again a strong combination of improved project execution, good project progress and also a higher vessel utilization level, where especially the cutter suction dredger fleet particularly showed a good recovery. It is also important to remember that the H1 2025 is impacted by losses incurred on our Belgium offshore infrastructure project work. During the H1 2026, substantial progress has been made on this project itself.

Speaker #1: The EBITDA margin rebounded to 22%, so a nominal EBITDA contribution of $212 million, compared with 12% in the first half of 2025. It reflects again a strong combination of improved project execution, good project progress, and also a higher vessel utilization level, where especially the cutter suction dredger fleet particularly showed a good recovery.

Speaker #1: It's also important to remember that the first half of 2025 was impacted by losses incurred on our Belgium offshore infrastructure project work. Then, during the first half of 2026, substantial progress has been made on this project itself.

Speaker #1: Now, as a result, dredging and infra returned to profitability levels that more accurately reflect not only the underlying quality of the segment, but also the earning capacity of the business.

Stijn Gaytant: Now, as a result, dredging and infill return to profitability levels that more accurately reflect not only the underlying quality of the segment, but also the earning capacity of the business. For environmental, the order book increased to EUR 337 million, which is supported by new contract awards in Belgium and the Netherlands, and also complemented by the first significant project outside the Benelux region. Revenue amounted to EUR 131 million compared to EUR 142 million H1 2025. The decrease is mainly related to project phasing, while in the meantime, we continue, of course, our works on the several long-term remediation and flood protection projects in Belgium and the Netherlands. During the period also, the team also started working on the Port of Bagnoli project in Italy. Such EBITDA amounts to EUR 15 million. It corresponds to a margin of 11% and is compared to 15% a year ago.

Speaker #1: For Environmental, the order book increased to $337 million, supported by new contract awards in Belgium and the Netherlands, and also complemented by the first significant project outside the Benelux region.

Speaker #1: Revenue amounted to $131 million, compared to $142 million in the first half of 2025. The decrease is mainly related to project phasing, while in the meantime we continue, of course, our work on several long-term remediation and flood protection projects in Belgium and the Netherlands.

Speaker #1: And during the period, the team also started working on the Port of Bagnoli project in Italy. Such EBITDA amounts to $15 million. It corresponds to a margin of 11% and is compared to 15% a year ago.

Speaker #1: Now, at the same time, the segment continued to invest in future growth through the expansion of its soil treatment facilities, and also the further scale-up of the Kargen activated carbon solution, supporting its long-term growth ambitions in environmental remediation.

Stijn Gaytant: Now, at the same time, the segment continued to invest in future growth through the expansion of its soil treatment facilities and also the further scale-up of the Cargen activated carbon solution and supporting its long-term growth ambitions in environmental remediation. So despite maybe temporary project phasing effects on revenue and also on profitability, the environmental strengthened its order book, expanded its geographical footprint, and continued investing in future growth platforms. In the last segment, the concessions, they report a net result of nearly EUR 10 million compared to EUR 5 million in H1 2025. Why is that? Well, wind production did improve compared to the prior year, but remained below historical levels. While on the other hand, port concessions activities continued to provide a recurring contribution to the results.

Speaker #1: So, despite maybe temporary project phasing effects on revenue and also on profitability, the Environmental strengthened its order book, expanded its geographical footprint, and continued investing in future growth platforms.

Speaker #1: And the last segment, the concessions, reported a net result of nearly $10 million, compared to $5 million in the first half of 2025.

Speaker #1: Why is that? Well, wind production did improve compared to the prior year, but remained below historical levels. On the other hand, port concessions activities continued to provide a recurring contribution to the results.

Speaker #1: The segment continued to operate wind farms also in Belgium, and it is advancing with their Bowdun project in Scotland. And they are also moving ahead with carefully selected upcoming tenders in Belgium and international markets.

Stijn Gaytant: The segment continued to operate wind farms also in Belgium, and is advancing with their Bowdun project in Scotland, and is also moving ahead with carefully selected upcoming tenders in Belgium and international markets. Concessions team has achieved several important milestones, and I briefly already made the reference to the concessions for Port of Paranaguá in Brazil for 25 years. I think overall, concessions portfolio continues to generate recurring earnings, creates strategic growth opportunities, and also supports the value creation across the wider of the DEME Group. With that, I will hand over to Luc, who will discuss some of these developments in more detail.

Speaker #1: Concessions team has achieved several important milestones, and I briefly already made reference to the concessions for port of Paranaguá in Brazil for 25 years.

Speaker #1: I think overall, the concessions portfolio continues to generate recurring earnings, create strategic growth opportunities, and also supports value creation across the wider DEME Group.

Speaker #1: And with that, I'll hand over to Luke, who will discuss some of these developments in more detail. Yes, thank you, Stan, for this comprehensive overview of the financials.

Luc Vandenbulcke: Yes. Thank you, Stijn, for this comprehensive overview of the financials. The next part of the presentation, as you know, I will take you a bit more into depth into some of our key projects of the last half year. Let us start with offshore energy. So, you see a map here. I will take you through it a bit from left to right. We will start in the United States. In the US, the offshore energy team successfully completed all the works now on the Vineyard Wind project, as well as the cable activity, installation activities for Empire Wind 1. That leaves us with one ongoing project, that is the Coastal Virginia Offshore Wind projects, where our teams have completed the installation of all 176 foundations, all transition pieces, and all offshore substations.

Speaker #1: The next part of the presentation, as you know, I will take you a bit more in depth into some of our key projects of the last half year.

Speaker #1: And let's start with offshore energy. You see a map here, and I will take you through it a bit from left to right. We'll start in the United States.

Speaker #1: And in the US, the Offshore Energy team successfully completed all the works now on the Vineyard Wind project, as well as the cable installation activities for Empire Wind One.

Speaker #1: That leaves us with one ongoing project, which is the Coastal Virginia Offshore Wind project, where our teams have completed the installation of all 176 foundations, all transition pieces, and all offshore substations.

Speaker #1: Orion and Sea Installer, which were active there, have crossed the Atlantic and have commenced new projects in Europe. Meanwhile, in the second quarter of 2026—

Luc Vandenbulcke: Orion and Sea Installer, which were active there, have crossed the Atlantic, and they have commenced new projects in Europe meanwhile, in Q2 2026. The remaining activities on Coastal Virginia for the year include inter-array and export cable installation, as well as some rock placement operations. Then we go to the other side of the map in Taiwan. We are making good progress both on Hailong and on the Fengmiao project, and our recently upgraded jack-up vessel, the Sea Challenger, has started installing turbines at Hailong, and at the same time on Fengmiao. Difficult word. Fengmiao. Green Jade has completed all pin pile installations and has successfully installed the offshore substation and the topside on top of it. The vessel also started jacket installation works recently in August.

Speaker #1: Now, the remaining activities on coastal Virginia for the year include inter-array and export cable installation, as well as some rock placement operations. Then we go to the other side of the map, in Taiwan.

Speaker #1: We are making good progress, both on Hailong and on the Fengmiao project. Our recently upgraded jack-up vessel, the Sea Challenger, has started installing turbines at Hailong.

Speaker #1: And at the same time, on Fengmiao—difficult word, Fengmiao—Green Jade has completed all pin pile installations and has successfully installed the offshore substation and the topside on top of it.

Speaker #1: The vessel also started jacket installation works recently, in August. Going to Europe, the team installed all 62 jacket foundations on the Dieppe Le Tréport offshore wind farm in France.

Luc Vandenbulcke: Going to Europe, the team installed all 62 jacket foundations on the Dieppe Le Tréport offshore wind farm in France, and they also commenced the installation of the inter-array cables. In the UK, our cable layer, Viking Neptun, continued cable installation activities at Dogger Bank C, and the vessel was also busy at the Baltic Power Project in Poland. In the Netherlands, closer to home, the team began cable installation works on the Emer/Alpha Nederwiek 1 project. In Germany, we completed, rather, the activities at He Dreiht, and we continued the work on Nordlicht 1 and Nordsee Cluster A. The preparations for Windanker project are also underway. Let me take the opportunity to take you a bit more in-depth, in some of our main projects as examples. The first one is Nordlicht 1, which is starting to take shape in the German North Sea.

Speaker #1: And they also commenced the installation of the inter-array cables. In the UK, our cable layer Viking Neptune continued cable installation activities at Dogger Bank Sea.

Speaker #1: And the vessel was also busy at the Baltic Power project in Poland. In the Netherlands, closer to home, the team began cable installation works on the Emmerdever Alpha Nederwijk One project.

Speaker #1: In Germany, we completed the activities at He Dreiht, and we continued the work on Nordlicht 1 and Nordsee Cluster A. The preparations for the Windanker project are also underway.

Speaker #1: Now, let me take the opportunity to go a bit more in-depth on some of our main projects as examples. The first one is Nordlicht One, which is starting to take shape in the German North Sea.

Speaker #1: We were awarded the contract for the transport and installation of 112 foundations at both the Nordlicht One and Nordlicht Two projects, as well as the scour protection at both wind farms.

Luc Vandenbulcke: We were awarded the contract for the transport and installation of 112 foundations at both the Nordlicht 1 and Nordlicht 2 projects, as well as the scour protection at both wind farms. Orion has installed the first monopile in July and now already completed approximately 47 monopile installations. I think this is a remarkable achievement and a clear illustration how a high-performing asset and that combined with the expertise and the execution capabilities of our team, can really deliver outstanding productivity offshore. Following the installation of the first monopile foundation, Sea Installer already commenced the transition piece installation as of early August and has already installed about 20 units. With this project and others, DEME is further expanding its extensive track record in German waters, both in the North Sea and the Baltic. As you know, over the years, we have contributed to many German offshore wind projects.

Speaker #1: Orion has installed the first monopile in July and has now already completed approximately 47 monopile installations. I think this is a remarkable achievement and a clear demonstration of how a high-performing asset, combined with the expertise and execution capabilities of our team, can really deliver outstanding productivity offshore.

Speaker #1: Following the installation of the first monopile foundations, Sea Installer already commenced transition piece installation as of early August, and has already installed about 20 units.

Speaker #1: With this project and others, DEME is further expanding its extensive track record in German waters, both in the North Sea and the Baltic. And as you know, over the years, we have contributed to many German offshore wind projects—just to give a couple of them: Kaskazi, Merkur, the famous Merkur project, Hohe See, Albatros, Gode Wind, and Borkum Reeffront.

Luc Vandenbulcke: Just to give a couple of them, Kaskasi, Merkur, famous Merkur project, Hohe See, Albatros, Hohe Wind, and Borkum Riffgrund. Then we go to the second project, and we are seeing a picture here of the Norse Wind. We are delighted that that new jack-up has already smoothly entered into service and is already performing the second project, and that RWE's Nordsee Cluster A offshore wind farm in the German North Sea. This follows from the first one, which was a successful completion of its first project at the He Dreiht Wind Farm, also in Germany. Norse Wind operates from the port of Esbjerg in Denmark and can transport and install up to five turbine sets per cycle. The vessel installed the first Nordsee Cluster turbine around June. By the end of the year, all 44 Vestas turbines are expected to be in place.

Speaker #1: Then we go to the second project, and we are seeing a picture here of the Norsewind. And we are delighted that the new Jacob has already smoothly entered into service and is already performing the second project, and that airway is Nordsee Cluster A offshore wind farm in the German North Sea.

Speaker #1: This follows from the first one, which was the successful completion of its first project at the Heedruit wind farm, also in Germany. Norsewind operates from the port of Esbjerg in Denmark and can transport and install up to five turbine sets per cycle.

Speaker #1: The vessel installed the first Nordsee Cluster turbine around June. By the end of the year, all 44 Vestas turbines are expected to be in place.

Speaker #1: And once completed, Nordsee Cluster is expected to generate around 6.5 terawatt-hours of electricity annually. Then we are going to France, and we're looking here at the Dieppe Le Tréport offshore wind farm.

Luc Vandenbulcke: Nordsee Cluster is expected to generate around 6.5 terawatt-hours of electricity annually. We are going to France, and we are looking here at the Dieppe Le Tréport offshore wind farm. DEME was here awarded several contracts for the wind farm, including the transport and installation of the pin piles and jackets, the foundation and topside for the offshore substation, and the inter-array cables. We deployed our jack-up vessel Innovation to install all jacket foundations, and we also commenced the installation of the inter-array cables. During this latest campaign, we reached quite an important milestone. We have already installed 200 foundations in French waters in just five years of operations over there.

Speaker #1: DEME was here awarded several contracts for the wind farm, including the transport and installation of the pin piles and jackets, the foundation and topside for the offshore substation, and the inter-array cables.

Speaker #1: We deployed our Jacob installation vessel, or Jacob vessel innovation, to install all jacket foundations. We also commenced the installation of the inter-array cables.

Speaker #1: During this latest campaign, we reached quite an important milestone. We have already installed 200 foundations in French waters in just five years of operations over there.

Speaker #1: Then we are going to a project in Taiwan, Fengmiao One. In the APAC region, where DEME’s joint venture, CDB, has been busy in the first half, particularly with the Hailong and, as I mentioned before, Fengmiao offshore wind projects.

Luc Vandenbulcke: We are going to a project in Taiwan, Fengmiao I, in the APAC region, where DEME's joint venture, CDWE, has been busy in the H1, particularly with the Hailong, and as I mentioned before, Fengmiao offshore wind projects. We achieved a double milestone at the Fengmiao offshore wind farm, deploying Green Jade and completing both the pin pile campaign and the transport and installation of the offshore substation ahead of schedule. You can see here on the picture the foundation of the substation. Together, the foundation and the topside weigh more than 8,000 tons, making it the largest offshore substation installed in Taiwan to date. Additionally, we also commenced on Fengmiao the jacket installation works this month. That's it for offshore energy. We go now to the dredging and infra segment.

Speaker #1: We achieved a double milestone at the Fengmiao offshore wind farm, deploying Green Jade and completing both the pin-pile campaign and the transport and installation of the offshore substation ahead of schedule.

Speaker #1: And you can see here in the picture the foundation of the substation. Together, the foundation and the topside weigh more than 8,000 tons, making it the largest offshore substation installed in Taiwan to date.

Speaker #1: Additionally, we also commenced the jacket installation works on Fengmiao this month. So that's it for Offshore Energy. We'll now move on to the Dredging and Infra segment.

Speaker #1: So as you can see on slide 21, our dredging team was busy all over Europe, with multi-year maintenance contracts and also new projects.

Luc Vandenbulcke: As you can see on slide 121, our dredging team was busy all over Europe with multi-year maintenance contracts and also new projects. Let's just highlight a few. We completed maintenance works at London Gateway, and we made progress on the dredging and reclamation works for a new offshore terminal at the port of Cuxhaven, and that in Germany. In France, the La Chatière project in Le Havre entered its second year. In Spain, we successfully executed beach nourishment works in the Valencia region, while at the same time, several project progressed both in Italy and Greece. In the Middle East, and of course, despite regional market turbulence which we encounter, the segment still delivered solid operational progress, completing works in Saudi Arabia and continuing activities at Abu Qir 2 in Egypt.

Speaker #1: Let's just highlight a few. We completed maintenance works at London Gateway, and we made progress on the dredging and reclamation works for a new offshore terminal at the Port of Cuxhaven.

Speaker #1: And that in Germany. In France, the La Chatière project in Le Havre entered its second year. And in Spain, we successfully executed beach nourishment works in the Valencia region, while at the same time several projects progressed, both in Italy and Greece.

Speaker #1: In the Middle East, and of course, despite regional market turbulence, which we encountered, the segment still delivered solid operational progress, completing works in Saudi Arabia and continuing activities at Aboukir II in Egypt.

Speaker #1: The coastal protection works in Grand Lahou, Ivory Coast, were finalized, while several dredging projects continued in the West African region. In India, maintenance and capital dredging projects were carried out in Paradip, Varsha, and Mumbai.

Luc Vandenbulcke: The coastal protection works in Grand Lahou in Ivory Coast were finalized, while several dredging projects continued in the West African region. In India, maintenance and capital dredging projects were carried out in Paradip, Varsha, and Mumbai. Meanwhile, our infra activities progressed well. I will come back to the Princess Elisabeth Island and also to the Fehmarnbelt Fixed Link project in a moment. At the Oosterweel connection, all tunnel elements were immersed and connected. In France, we worked on the Port-la-Nouvelle project, which entered its final phase following the completion of all civil construction works. Let me give you with this very beautiful picture here on the screen of the seems like an atoll, but it's becoming an island in the coming weeks. Let me provide some more details to some of the main projects during the H1.

Speaker #1: Meanwhile, our infra activities also progressed well. I will come back to the Princess Elizabeth Island and to the Fehmarnbelt fixed link project in a moment.

Speaker #1: But at the Oosterweel connection, all tunnel elements were immersed and connected. In France, we worked on the Port-La Nouvelle project, which entered its final phase following the completion of all civil construction works.

Speaker #1: Now let me give you with with this very beautiful picture here on the on the screen, of the it seems like an atoll, but it's becoming an island in the coming weeks.

Speaker #1: Let me provide some more details on some of the main projects during the first half. DEME is part, as you know, of the TM Edison consortium.

Luc Vandenbulcke: DEME is part, as you know, of the TM Edison consortium, constructing the Princess Elisabeth Island in the Belgian North Sea. Following the second installation campaign, all 23 caissons have now been successfully installed. They really shape the outer walls of the future island, and they create a safe harbor for the electrical infrastructure which will then follow. As mentioned, the sand filling and the preparations for the island's interior are now underway and ongoing. This island, as you know, is about 45 kilometers offshore, and it will really be a cornerstone of Europe's offshore power grid, connecting wind farms and also international interconnectors to Belgium, a project which we are particularly proud of. We are going now to the Fehmarnbelt project.

Speaker #1: Constructing the Princess Elizabeth Island in the Belgian North Sea, following now the second installation campaign, all 23 caissons have now been successfully installed. They really shape the outer walls of the future island, and they create a safe harbor for the electrical infrastructure, which will then follow.

Speaker #1: As mentioned, the sand filling and preparations for the island's interior are now underway and ongoing. This island, as you know, is about 45 kilometers offshore, and it will really be a cornerstone of Europe's offshore power grid, connecting wind farms and also international interconnectors to Belgium.

Speaker #1: A project which we are particularly proud of. Now we're going to the Fehmarnbelt project. On the Fehmarnbelt fixed link project, a major milestone was also achieved with the immersion and connection of the project's third, already standard tunnel element, following months of careful planning and coordination.

Luc Vandenbulcke: On the Fehmarnbelt fixed link project, a major milestone was also achieved with the immersion and connection of the project's third already standard tunnel element following months of careful planning and coordination. You see here a picture which, if you look well, the elements are slightly underwater. This milestone marks the transition to full execution of one of the project's most critical phases of the project, which at 18 kilometers long, will be the longest immersed tunnel in the world. To give you a couple of dimensions, measuring 217 meters in length and weighing 73,000 tons per piece, each element must be transported, positioned precisely, and installed in a tunnel trench at depths of up to, at the deepest point, 40 meters.

Speaker #1: And you see here a picture with if you look well the the the elements slightly underwater. This milestone marks the transition to full execution of one of the project's most critical phases of the project.

Speaker #1: Which, at 18 kilometers long, will be the longest immersed tunnel in the world. To give you a couple of dimensions: measuring 217 meters in length and weighing 73,000 tons per piece, each element must be transported, positioned precisely, and installed in a tunnel trench at depths of up to, at the deepest point, 40 meters.

Speaker #1: A total of 89 elements will be carried by the immersion pontoons, which you see here, called IV1 and IV2. They are both equipped with high-precision alignment systems.

Luc Vandenbulcke: A total of 89 elements will be carried by the immersion pontoons, which you see here, called IV1 and IV2, and they are both equipped with high-precision alignment systems. A second project here is the Bay of Naples, where we are carrying out marine and environmental works for the redevelopment of what they call the Bagnoli Coroglio industrial area. This is a high level site. It will host the 38th America's Cup, which is scheduled to begin in July already next year, so a tight schedule. We are preparing the venue for the preliminary regattas, which will be taking place as of next month. I think it is really another strong example of DEME's ability to deliver innovative and sustainable solutions to complex marine, because we have works here, environmental works, civil works, dredging works while at the same time meeting demanding timelines.

Speaker #1: A second project here is the Bay of Naples, where we are carrying out marine and environmental works for the redevelopment of what they call the Bagnoli-Coroglio industrial area.

Speaker #1: This is a high-level site. It will host the 38th America's Cup, which is scheduled to begin in July already next year.

Speaker #1: So, a tight schedule. We are preparing the venue for the preliminary regattas, which will be taking place as of next month. I think it's really another strong example of DEME's ability to deliver innovative and sustainable solutions to complex marine challenges, because we have works here, while at the same time meeting demanding timelines.

Speaker #1: The next slide is about a fleet addition. We want to further strengthen and expand our dredging fleet, and as such, we recently ordered a 20,000—22,000, sorry, cubic meter trailing suction hopper dredger, which you can see here on the render.

Luc Vandenbulcke: The next slide is about a fleet addition. We want to further strengthen and expand our dredging fleet, and as such, we recently ordered a 22,000, sorry, cubic meter trailing suction hopper dredger, which you can see here on the render. The new dredger will support our long-term competitiveness both in capital and maintenance dredging, land reclamation, and offshore seabed preparations. It is designed to enhance operational efficiency through a structurally lower cost per dredged cubic meters while at the same time reducing greenhouse gas emission intensity. The delivery is scheduled for 2029. The vessel will be built in China under our supervision and will then be outfitted in Singapore. We are going now to the third contracting segment, which is environmental. Here again, a map.

Speaker #1: The new dredger will support our long-term competitiveness, both in capital and maintenance dredging, land reclamation, and offshore seabed preparations. It is designed to enhance operational efficiency through a structurally lower cost per dredged cubic meter, while at the same time reducing greenhouse gas emission intensity.

Speaker #1: The delivery is scheduled for 2029. The vessel will be built in China under our supervision and will then be outfitted in Singapore. We are now moving to the third contracting segment, which is environmental.

Speaker #1: So, in here again, a map in the Netherlands operational works on the Gorcum-Waardenburg so-called GOA dike reinforcement project were successfully completed, while our activities continued on other flood protection and infrastructure projects, and the sand supply project for the Port of Rotterdam.

Luc Vandenbulcke: In the Netherlands, operational works on the Gorinchem-Waardenburg, so-called GoWa dyke reinforcement project were successfully completed while our activities continued on other flood protection and infrastructure projects and the sand supply project for the Port of Rotterdam. At the same time, preparatory works are underway for a major remediation project at Schiphol Airport in Amsterdam, and the activities are scheduled to start there in the H2 of the year. In Belgium, Oosterweel and the BASF-Vilvoorde project forged ahead. At the same time, we also carried out maintenance works on the River Meuse. In addition, soil investigations were initiated for the redevelopment of the former ArcelorMittal site near Liège. Environmental also continued to expand and upgrade its soil treatment centers both in Belgium and the Netherlands.

Speaker #1: At the same time, preparatory works are underway for a major remediation project at Schiphol Airport in Amsterdam. The activities are scheduled to start there in the second half of the year.

Speaker #1: In Belgium, Oosterweel and the BASF VLW project forged ahead. At the same time, we also carried out maintenance works on the River Meuse. In addition, soil investigations were initiated for the redevelopment of the former ArcelorMittal site near Liège.

Speaker #1: Environmental also continued to expand and upgrade its soil treatment centers, both in Belgium and the Netherlands. And through the Kargen joint venture, the segment is also scaling up the volumes and the commercial capacity of its activated carbon filtration solutions.

Luc Vandenbulcke: Through the Cargen joint venture, the segment is also scaling up the volumes and the commercial capacity of its activated carbon filtration solutions. Now on to some of the key projects. First one is the Vilvoorde. Our environmental team continued to make solid progress here at the former BASF site in Neder-Over-Heembeek, so in Vilvoorde. That is under the public-private partnership where we are responsible for the purchase, the remediation, and the redevelopment of a 65-hectare contaminated site, which you see here on the picture. Our work addresses both contaminated soil and groundwater. We have already removed existing infrastructure and our R&D department developed a specialized biological solution to neutralize the pollutants. Around 150,000 tons of sludge are being treated, and mostly that is important on site itself, avoiding truck movements and emissions.

Speaker #1: Now I want to highlight some of the key projects. The first one is the VLW. Our environmental team continued to make solid progress here at the former BASF site in NO, so in VLW.

Speaker #1: That is under a public-private partnership, where we are responsible for the purchase, the remediation, and the redevelopment of a 65-hectare contaminated site, which you see here in the picture.

Speaker #1: Our work addresses both contaminated soil and groundwater. We have already removed existing infrastructure, and our R&D department developed a specialized biological solution to neutralize the pollutants.

Speaker #1: Around 150,000 tons of sludge are being treated, and mostly that's happening on site itself, avoiding truck movements and emissions. In addition, around 4 million tons of recycled, clean soil from our treatment centers will be used for backfilling and creating level surfaces at the site.

Luc Vandenbulcke: In addition, around 4 million tons of recycled clean soil from our treatment centers will be used for backfilling and creating level surfaces at the site. We are going to the Netherlands now to Marken, where together with our partners, we are making steady progress in reinforcing the dykes around the island of Marken. Marken is famous for its iconic green wooden stilt houses. Reinforcing the dyke is a complex undertaking that requires customized solutions to preserve the island's cultural and historical character. For example, the design closely follows the original dike line, preserving views of the specific landmarks. To limit disruption, most of the work is carried out from the water. The dike is being strengthened in phases using tailored engineering methods for the soft ground conditions which we encounter over there. Set for completion in 2028, Marken will be protected against high water for at least another 50 years.

Speaker #1: We're going to the Netherlands now, to Marken, where together with our partners we are making steady progress in reinforcing the dikes around the island of Marken.

Speaker #1: Marken is famous for its iconic green wooden stilt houses. Reinforcing the dike is a complex undertaking that requires customized solutions to preserve the island's cultural and historical character.

Speaker #1: For example, the design closely follows the original dike line, preserving views of the specific landmarks. To limit disruption, most of the work is carried out from the water.

Luc Vandenbulcke: For example, the design closely follows the original dike line, preserving views of the specific landmarks. To limit disruption, most of the work is carried out from the water. The dike is being strengthened in phases using tailored engineering methods for the soft ground conditions which we encounter over there. Set for completion in 2028, Marken will be protected against high water for at least another 50 years.

Speaker #1: The dike is being strengthened in phases using tailored engineering methods for the soft ground conditions, which we encounter over there. Set for completion in 2028, Marken will be protected against high water for at least another 50 years.

Speaker #1: Now, to conclude the segment review, let me turn to concessions. A couple of key projects: we continue to operate our wind farms, obviously, in Belgium.

Luc Vandenbulcke: Now, to conclude the segment review, let me turn now to concessions. Couple of key projects. We continue to operate our wind farms obviously in Belgium, and we have advanced on the Bowdun concession projects in Scotland. Meanwhile, our port concession activities continue to deliver recurring contributions and create new growth opportunities. In March, we signed a 25-year concession contract for the marine access channel of the Port of Paranaguá in Brazil, which I will outline in a bit more detail on one of the next slides. The team continues to manage and further develop its portfolio of port participations, including Port-la-Nouvelle in France and the Port of Duqm in Oman. At the Port of Duqm, operations were temporarily impacted at the start of the conflict in the Gulf region. But despite this, we are making headway.

Speaker #1: And we have advanced on the Bowden concession projects in Scotland. Meanwhile, our port concession activities continue to deliver recurring contributions and create new growth opportunities.

Speaker #1: In March, we signed the 25-year concession contract for the marine access channel of the Port of Paranaguá in Brazil, which I will outline in a bit more detail on one of the next slides.

Speaker #1: The team continues to manage and further develop its portfolio of port participations, including Port-La Nouvelle in France and the Port of Duqm in Oman.

Speaker #1: At the Port of Duqm, operations were temporarily impacted at the start of the conflict in the Gulf region, but despite this, we are making headway.

Speaker #1: On the infra side, Concessions concluded the sale of its stake in the Blankenburg tunnel projects in April, which resulted in a gain on disposal amounting to €2.6 million.

Luc Vandenbulcke: On the infra side, concessions concluded the sale of its stake in the Blankenburgverbinding projects in April, which resulted in a gain on disposal amounting to EUR 2.6 million. Our deep sea mineral exploration subsidiary, Global Sea Mineral Resources, signed an MOU with Japan-based Deep Ocean Resources Development Co., Ltd., and that is covering a pilot mining test. The test is intended to validate the operational and environmental performance of an integrated commercial-scale mining system. In our green hydrogen activities, DEME HYPORT Energy continued to advance its projects both in Oman and Egypt. For HYPORT Duqm, OQ and DEME have an agreement to take over BP's stake, and both partners will now continue developing the project together. This is now a picture of our project in Port-la-Nouvelle, where the civil construction works were successfully completed in the H1 of this year.

Speaker #1: Our deep sea mineral exploration subsidiary, GSR, signed an MOU with Japan-based Deep Ocean Resources Development. That covers a pilot mining test. The test is intended to validate the operational and environmental performance of an integrated, commercial-scale mining system.

Speaker #1: In our green hydrogen activities, High Port Energy continues to advance its projects, both in Oman and Egypt. And for High Port Duqm, OQ and DEME have an agreement to take over BP's stake, and both partners will now continue developing the project together.

Speaker #1: This is now a picture of our project in Port-La Nouvelle, where the civil construction works were successfully completed in the first half of this year.

Speaker #1: The new deep sea berth welcomed its first ro-ro ships already on December 25. And as you can see in the picture, the new liquid berth terminal saw the arrival of its first vessel recently, in June.

Luc Vandenbulcke: The new deep sea berth welcomed already its first ro-ro ships in December 2025. As you can see on the picture, the new liquid berth terminal saw the arrival of its first vessel now recently in June. Finally, onto our outlook for the remainder of the year and 2027. Despite global macroeconomic turbulence and continued uncertainty in the Middle East, we still remain confident in DEME's ability to deliver strong financial results. This confidence is supported by our solid order book, healthy balance sheet, attractive market fundamentals, and diversified activities. For 2026, we expect turnover to be slightly above the 2025 level, with an EBITDA margin in line with 2025. Our 2026 capital expenditure outlook remains unchanged at approximately EUR 450 million.

Speaker #1: And finally, onto our outlook for the remainder of the year and 2027. Despite global macroeconomic turbulence and continued uncertainty in the Middle East, we still remain confident in DEME's ability to deliver strong financial results.

Speaker #1: This confidence is supported by our solid order book, healthy balance sheet, attractive market fundamentals, and diversified activities. For 2026, we expect turnover to be slightly above the 2025 level, with an EBITDA margin in line with 2025.

Speaker #1: Our 2026 capital expenditure outlook remains unchanged at approximately €450 million. This includes upgrade, repair, and maintenance investments in the fleet, but also the payments for the completion of the Norse Energy and already the initial investments related to the new hopper dredger.

Luc Vandenbulcke: This includes upgrade, repair, and maintenance investments in the fleet, but also the payments for the completion of the Norse Energi and already the initial investments related to the new hopper dredger. For 2027, and based on the visibility we have today, we expect to maintain strong profitability, with EBITDA broadly in line with 2025, despite a somewhat lower top line. As mentioned at the beginning of my presentation, 2026 is a remarkable milestone year in our history. We have been shaping horizons around the world for 150 years. You can explore our history on the special anniversary website, where we are sharing 150 very inspiring stories about our pioneering people, projects, and innovative breakthroughs. With this, I conclude my part of the formal presentation, and I will now hand you back to Carl so that he can start the Q&A session.

Speaker #1: For 2027, and based on the visibility we have today, we expect to maintain strong profitability, with EBITDA broadly in line with 2025, despite a somewhat lower top line.

Speaker #1: As mentioned at the beginning of my presentation, 2026 is a remarkable milestone year in our history. We have been shaping horizons around the world for 150 years.

Speaker #1: You can explore our history on the special anniversary website, where we are sharing 150 very inspiring stories about our pioneering people, projects, and innovative breakthroughs.

Speaker #1: With this, I conclude my part of the formal presentation, and I will now hand you back to Carl so that he can start the Q&A session.

Speaker #1: Thank you, Luc and Stijn. We will now begin the Q&A session. There are two ways to ask questions for participants in the webcast.

Carl Vanden Bussche: Thank you, Luc and Stijn. We will indeed now begin the Q&A session. There are two ways to ask questions. For participants in the webcast, you can use the chat function to submit your question, or you can raise your hand and we will let you know when we are ready for your question. For participants on the conference call line, please dial star one and the operator will place you in the waiting room before you can ask the question. From our side, we will manage the flow and do our best to field questions from different angles. When it is your turn, we kindly ask that you limit yourself to a maximum of two questions. That will give everyone the opportunity to ask a question. Please ask your questions one at a time. If you have additional questions, please queue again.

Speaker #1: You can use the chat function to submit your question, or you can raise your hand, and we will let you know when we are ready for your question.

Speaker #1: For participants on the conference call line, please dial star one, and the operator will place you in the waiting room before you can ask your question.

Speaker #1: From our side, we will manage the flow and do our best to field questions from different angles. When it's your turn, we kindly we kindly ask that you limit yourself to a maximum of two questions that will give you that will give everyone the opportunity to ask a question.

Speaker #1: Please ask your questions one at a time. If you have additional questions, please queue again. So, without further ado, I think we're ready now to take the first question.

Carl Vanden Bussche: Without further ado, I think we are ready now to take the first question. I see that we have already people lining up in the webcast and on the conference call line. Let us start with the first question from Guy Sips from KBC Securities. Good morning, Guy.

Speaker #1: I see that we already have people lining up on the webcast and on the conference call line. Let's start with the first question from Guy Sips at KBC Securities.

Speaker #1: Good morning, Guy.

Speaker #2: Yes, thank you. And first of all, congratulations on very good results. I have two questions. The first is on your 2027 outlook: What are the main drivers or building blocks behind this resilience in profitability?

Guy Sips: Yes, thank you. First of all, congratulations with very good results. I have two questions. The first is on your 2027 outlook. What are the main drivers, building blocks behind this resilience in profitability? Can you give somewhat more color on this one? The second question is on Cadeler's recent acquisition of Menck. You are historically working closer with independent equipment providers, such as IQIP, rather than vertically integrating these capabilities. How do you view Cadeler's acquisition on Menck? Going forward, will you intensify your relationship with IQIP or other players? Thank you.

Speaker #2: Can you give a bit more color on this one? And the second question is on your recent acquisition of Maine. Historically, you have been working more closely with independent equipment providers such as Ekip, rather than vertically integrating these capabilities.

Speaker #2: How do you view Kettler's acquisition on Maine and going forward? Will you intensify your relationship with Ekip or other players? Thank you.

Speaker #1: Thank you, Guy. Luc, I think a bit of color on our 2027 outlook.

Carl Vanden Bussche: Thank you, Guy. Luc, I think a bit of color on our 2027 outlook.

Speaker #3: Yes. Good morning, Guy. Thanks for your question. Yes, your first question is about the outlook for 2027. Now, I mentioned, I think during my presentation, that we base this on the fact that we continue to see supportive market fundamentals.

Luc Vandenbulcke: Yes. Good morning, Guy. Thanks for your question. Yes. Your first question is about the outlook for 2027. I mentioned, I think, during my presentation that we base this on the fact that we continue to see supportive market fundamentals. There is, I see across our activities, a healthy tendering activity. Of course, following on that, I tend to see a good pipeline of opportunities. Based on that, I think we expect that those factors will contribute to a positive evolution of the order book in the coming months. Maybe your question was also a little bit on the flavor. Maybe I should give a little bit more granularity on the segments. Very shortly, if I take them in the order we have them.

Speaker #3: I see across our activities a healthy tendering activity, and of course, following on that, I tend to see a good pipeline of opportunities.

Speaker #3: And based on that, I think we expect that those factors will contribute to a positive evolution of the order book in the coming months.

Speaker #3: But maybe your question was also a little bit on the flavor, and maybe I should give a little bit more granularity on the segments.

Speaker #3: So maybe, very shortly, if I take them in the order we have them: offshore energy—there, I think we need to distinguish a little bit between the short term and the long term.

Luc Vandenbulcke: Offshore energy, there, I think we need to distinguish a little bit between the short term and the long term. What you do see, that our US large offshore wind farm projects, we are now on the largest one, will complete this year. You know that these American projects contribute strongly to turnover, and that is, let me say, thanks to or due to, however you see it, the regulatory requirements with the Jones Act, so that increases the turnover. Also, US was a new market, so a lot of the supplies were coming from Europe. So a lot of logistics, also. You see that is a contributor to higher turnover. The market, which is, let's say, discontinued a bit in the US, is rapidly being replaced by the European and the Asian market, where we see our next growth phase happening.

Speaker #3: And what you do see is that our U.S. large offshore wind farm projects—the largest one—will now be completed this year.

Speaker #3: You know that these American projects contribute strongly to turnover. And that is, let me say, thanks to—or due to, however you see it—the regulatory requirements with the Jones Act.

Speaker #3: So that increases the turnover. And also, the US was a new market, so a lot of the supplies were coming from Europe. There was also a lot of logistics involved.

Speaker #3: So you see that is a contributor to higher turnover. The market, which is, let's say, discontinued a bit in the US, is rapidly being replaced by the European and Asian markets, where we see a next growth phase happening.

Speaker #3: But of course, that lags the US turnover runoff because we have a good fleet occupation, which we see. But the turnover in these European and Asian projects is somehow lower because you don't have the Jones Act.

Luc Vandenbulcke: But of course, that lags the US turnover runoff because, of course, we have a good fleet occupation, which we see, but the turnover in these European and Asian projects is somehow lower because you don't have the Jones Act, you have a bit less logistics. So that's a little bit what we are seeing right now. We see a little bit of a timing effect. But we don't really see a deterioration in the profitability profile of that business. We also see that there, I would say the next growth cycle is developing. You see that. You have seen the recent auction activities in the Netherlands, in Denmark, in Korea. So there, we see a takeoff. We see good, let's say, customer discussions.

Speaker #3: You have a bit less logistics, so that's a little bit what we are seeing right now. We see a bit of a timing effect, but we don't really see a deterioration in the profitability profile of that business.

Speaker #3: And we also see that there, I would say, the next growth cycle is developing. You see that you have seen the recent auction activities in the Netherlands, in Denmark, and in Korea.

Speaker #3: So there we see a takeoff. We see good, let's say, customer discussions. You also see the OEMs, which bring positivity to the market.

Luc Vandenbulcke: You also see the OEMs, which bring the positivity in the market, and it's the same as we see the long-term drivers are firmly intact. Then, maybe going a little bit to dredging and infrastructure. You have seen we had a good occupation. We think this is a robust segment, generating solid and also resilient results. You have seen that over the past months. I see a lot of tendering activities. I would say across the world, including the Middle East, where clients are continuing to tender and negotiate, but some of them obviously waiting for a more stable situation. So there also, I think we have a strong basis for a sustained performance and project awards in the near future. Then if I look at the somehow smaller segments, then you're coming to environmental and the concession business, maybe taking them together.

Speaker #3: And it's the same, as we see the long-term drivers are firmly intact. Then maybe going a little bit to Trading and Infrastructure. Yeah, you have seen we had a good occupation; we think this is a robust segment.

Speaker #3: Generating solid and also resilient results—you have seen that over the past months. I see a lot of tendering activities, I would say, across the world, including the Middle East, where clients are continuing to tender and negotiate.

Speaker #3: But some of them are obviously waiting for a more stable situation. So there, also, I think we have a strong basis for sustained performance.

Speaker #3: And project awards in the near future. And then, if I look at the somewhat smaller segments, then you’re coming to Environmental and the Concessions business.

Speaker #3: Maybe taking them together—yeah, we expect that they will continue to contribute, I would say, their fair share to the group's profitability.

Luc Vandenbulcke: We expect that they will continue to contribute their fair share to the group's profitability. I think

Speaker #3: Yeah, I think.

Speaker #1: Thank you, Luc. So, the second question from Guy, if I summarize that correctly, is about referencing Kettler acquiring Maine and strategic hammer equipment.

Carl Vanden Bussche: Thank you, Luc. The second question of Guy Sips, if I resume that correctly, is about reference to Cadeler acquiring Menck and strategic hammer equipment. What is our take on that?

Speaker #1: So, what is our take on that?

Speaker #3: Yeah. So, on the takeover itself, I think I prefer to be consistent in our messaging and not comment on the transaction itself. But let's say we do not really see that this transaction materially affects our own ability to access the equipment market.

Luc Vandenbulcke: Well, on the takeover itself, I think I prefer to be consistent in our messaging and not comment on the transaction itself. Let's say, we do not really see that this transaction materially affects our own ability to access the equipment market. That is one thing. Secondly, you have to understand, installing foundations is a pretty diversified activity with pretty diversified challenges. If I look at them, you say we are talking about main here, talking about hammering, but we are installing suction buckets. We have taken over SPT as you know. We have been doing quite some drilling works. We have a strong partnership with Herrenknecht there. You have a participation in GBM Works. In the Netherlands, we use vibratory hammers. Noise mitigation is one of the things which will occupy us in the future. So, a lot of diverse evolutions. We are strong believers in what we call horizontal integration.

Speaker #3: That's one thing. Secondly, you have to understand, installing foundations is a pretty diversified activity, with pretty diversified challenges. If I look at—say we're talking about Maine here, talking about hammering—but we are installing suction buckets.

Speaker #3: We have taken over SPT, as you know. We've been doing quite some drilling works. We have a strong partnership with Herrenknecht there. You have our participation in GBM in the Netherlands.

Luc Vandenbulcke: We have a strong partnership with Herrenknecht there. You have a participation in GBM Works. In the Netherlands, we use vibratory hammers. Noise mitigation is one of the things which will occupy us in the future. So, a lot of diverse evolutions. We are strong believers in what we call horizontal integration.

Speaker #3: We use vibratory hammers. Noise mitigation is one of the things which will occupy us in the future. So, a lot of diverse evolutions. We are strong believers in what we call horizontal integration.

Luc Vandenbulcke: Horizontal integration, which means that we want to present full packages to the clients. Being, as you know, turbine installation, foundation installation, soil investigation, the turbines cable installation, erosion protection, and having partnerships, framework agreements with the supply chain for those kinds of tools. I think that is, for us, a better way of approaching that. So I think that is a little bit our view on that.

Speaker #3: Horizontal integration, which means that we want to present full packages to the clients. Being as you know, turbine installation, foundation installation, soil investigation, turbine—yeah, the turbines, cable installation, erosion protection.

Speaker #3: And having partnership framework agreements with the supply chain for those kinds of tools—I think that's, for us, a better way of approaching that.

Speaker #3: So, I think that's a little bit our view on that.

Carl Vanden Bussche: Yeah. Thank you, Luc. I think we will shift to the next question from Philip Ngotho from Kepler Cheuvreux. Good morning, Philippe.

Speaker #1: Yeah. Thank you, Luc. I think we'll shift to the next question from Philippe Ngotto from Kepler Cheuvreux. Good morning, Philippe.

Speaker #2: Yeah, good morning. Thanks for taking the questions. Two as well, if I may. Yes, two then. Also, coming back a little bit on Kettler, but not then on other points.

Philip Ngotho: Yeah, good morning. Thanks for taking the questions. Two as well, if I may. Yes, two of them. Also coming back a little bit on Cadeler, but then on other points. I am just wondering if you could maybe talk about what you are seeing in terms of competition capabilities. Cadeler, of course, announced they just installed their first, what is foundation installation work on Hornsea. They were already announcing, of course, that they would like to move more into offering complete installation services as well, and engineering. How do you see that evolving? Is competition increasing on that side? Also maybe in terms of supply to the market, they just announced two new builds. What is your view there? What are your own plans, and how do you see moving towards 2030 there? Maybe the last question is on the Havfram, the earnings contribution.

Speaker #2: I'm just wondering if you could maybe talk about what you're seeing in terms of competition capabilities. Kettler, of course, announced they just completed their first foundation installation work on Hornsea.

Speaker #2: So they were already announcing, of course, that they would like to move more into offering complete installation services as well, and engineering. So, how do you see that evolving?

Speaker #2: Is the competition increasing on that side? And also, maybe in terms of supply to the market. They just announced two new builds as well.

Speaker #2: So, what was your view there? What are your own plans, and how do you see moving towards 2030 there? And maybe the last question is on the 'how' from the earnings contribution.

Speaker #2: How much do we already see this year, and what is the delta for 2027 versus 2026 from the pesos?

Philip Ngotho: How much do we already see this year, and what is the delta 2027 versus 2026 from the vessels? Thank you.

Carl Vanden Bussche: Yeah. Okay. Thank you, Philippe. I think probably the first question, Luc, also one for you on Cadeler, and so them adding vessels and the competitive capabilities there.

Speaker #3: Yeah.

Speaker #1: Okay. Thank you, Philippe. I think probably the first question, Luc, is also one for you on Kettler, and yes, about them adding vessels and the competitive capabilities there.

Speaker #3: Yeah. Thank you for your question, Philippe. I think I gave part of the answer already in my previous response. But let's say, in terms of capabilities and competitors' capabilities, let's maybe focus on our own capabilities, because I prefer not to dwell too much on the competitors in DEME's.

Luc Vandenbulcke: Yeah. Thank you for your question, Philippe. I think I gave part of the answer already in the previous answer. Let us say in terms of capabilities and competitors' capabilities, let us maybe take it on our capabilities, because I prefer not to dwell too much on the competitors in DEME's highlights. We are adding capacity in a number of ways. You have seen that we have, of course, added Havfram. We are investing in a trenching support and cable laying vessel. So we are adding capability there. Secondly, we also are adding capacity to the fleet in terms of, let us say, operability. It is not always about just adding vessels. We think we have a very good mix of vessels. Your question was pointing at foundation works, for instance.

Speaker #3: Highlights. We are adding capacity in a number of ways. You have seen that we have, of course, added Hafram. We are investing in entrenching support and a cable-laying vessel.

Speaker #3: So we're adding capability there. And then, secondly, we are also adding capacity to the fleet in terms of, let's say, operability. It's not always about just adding vessels.

Speaker #3: We think we have a very good mix of vessels. And your question was pointing at foundation works, for instance. If you look at it, we have a very good mix of what is called in the market the floaters, the Orion, and so many pictures of them.

Luc Vandenbulcke: If you look at, we have a very good mix of what is called in the market, the floaters, the Orion, you saw many pictures of them. Our meanwhile five large jack-up vessels, our capabilities for different foundation installation types. Very good and strong engineering capabilities, which we share across our segments. To give you an example, we are working on the Nordlicht 1 project. We started early July. Touch wood, I think by the end of August, we will have 50 monopiles in the ground. So it is also improving the capability. I think we have a strong offering there, being able, which I said in previous cases, obviously, to face competition in terms of supply and demand. You referred to new orders. I think they were known already in the market.

Speaker #3: And our, meanwhile, five large jack-up vessels are capable of different foundation installation types. Very good and strong engineering capabilities, which we share across our segments.

Speaker #3: And to give you an example, we are working on the Nordlicht 1 project. We started early July, and at Dutch Wood, I think by the end of August we will have 50 monopiles in the ground.

Speaker #3: So it's also improving the capability. I think we have a strong offering there. Being able—as I said in previous cases, obviously—to face competition in terms of supply and demand.

Speaker #3: You refer to new orders. I think they were already known in the market. And again, I can only point to the strength of our own fleet, which we have.

Luc Vandenbulcke: I can only point at the strength of our own fleet, which we have. So I think that is a little bit what I would like to comment to that. In terms of exact Havfram earnings, that is a question which I happily pass to Stijn.

Speaker #3: So I think that's a little bit what I would like to comment on. In terms of exact Hafram earnings, that's the question which I will happily pass to Stan.

Speaker #1: Thank you, Luc. Now Hafram it was already mentioned so Norse Wind and Norse Energy. Norse Wind started end of quarter one contributing. Norse Energy end of quarter two.

Stijn Gaytant: Thank you, Luc. Havfram, it was already mentioned, so Norse Wind and Norse Energi. Norse Wind started end of Q1, contributing. Norse Energi, end of Q2. What is typically for these kind of contracts, because of course, we took over the order book of EUR 530 million from the acquisition from Havfram, together with the vessels, is that the current contracts are, of course, more on a day-rate model. That means that the top-line contribution is a bit less. But we do see that profitability remains very attractive. It also shows Norse Wind finished their first project and is already on the way working for the second one. So it is contributing as we expected, for sure.

Speaker #1: What is typical for these kinds of contracts? Because, of course, we took over the order book of €530 million from the acquisition from Hafram, together with the vessels.

Speaker #1: The current contracts are, of course, more on a day rate model. That means the top-line contribution is a bit less, but we do see that profitability remains very attractive.

Speaker #1: And it also shows Norse Wind finished their first project and is already on the way, working on the second one. So it is contributing as we expected.

Speaker #1: For sure.

Speaker #3: Okay. Yeah. Thank you.

Carl Vanden Bussche: Okay. Yeah. Thank you, Stijn and Luc, on the first question. Moving to Thijs Berkelder for ABN AMRO Oddo. Thijs, good morning.

Speaker #1: And Stan and Luc on the first question. Moving to Thijs Berkelder from ABN AMRO, Odoo. Thijs, good morning.

Thijs Berkelder: Yeah. Good morning. Can you hear me?

Speaker #4: Yeah. Good morning. Do you hear me? Yes.

Luc Vandenbulcke: We do. Yes.

Speaker #1: Yes. Yes.

Stijn Gaytant: Yes.

Speaker #4: Okay. Well, first, congrats on the strong performance. My question is also on hammering, and it's a specific question. If I'm correct, you just offshore Germany tested IQWIP's new hammering technique called IQ Piling, or Pulse Piling.

Thijs Berkelder: Well, first congrats with the strong performance. My question is also on hammering, a specific question. If I am correct, you just offshore Germany tested IQIP's new hammering technique called IQ Piling or Pulse Piling, which according to my understanding, should make it possible to install monopiles as fast as with existing techniques, as well as with the much lower noise footprints. Can you confirm this massive progress of this new hammering technique? What will this mean for your future installation vessel plans? Second question is on guidance. It is only guide on group turnover and EBITDA, not much on the contribution of your JVs and associates, while these now represent close to 30% of your bottom-line earnings. It may be possible to give more specific guidance for your net earnings expectations going forward. I understand not now, maybe. Maybe better to have specific margin expectations per segment.

Speaker #4: Which, according to my understanding, should make it possible to install monopiles as fast as with existing techniques, as well as with a much lower noise footprint.

Speaker #4: Can you confirm this massive progress of this new hammering technique? And what will this mean for your future installation vessel plans? Second question is on guidance.

Speaker #4: Only guidance on group turnover and EBITDA—not much on the contribution from your JVs and associates. While these now represent close to 30% of your bottom-line earnings.

Speaker #4: It may be possible to give more specific guidance for your net earnings expectations going forward. I understand not now, maybe, and maybe it would be better to have specific margin expectations per segment.

Speaker #1: I think, first question on IQWIP.

Luc Vandenbulcke: I think first question on IQIP.

Luc Vandenbulcke: Yeah. Thank you, Thijs, for your good questions. The first one is referring to the testing of the IQIP EQ hammer. I am hesitating a little bit, because I think here, I am bound by many NDA clauses. I think it is rather a question to IQIP, honestly, on the exact things. We have been supplying a vessel for these tests, that is correct. I am also not sure that all the detailed results are there. What I can say is that there is a demand, which I also expressed in my previous question, for noise reduction measures, and that is something which, amongst others, with IQIP, we are looking at, let us say, improving those solutions and reducing the noises impact on future installation plans. I would not say that this impacts us a lot for the moment being.

Speaker #3: Thank you, Thijs, for your good questions. The first one is referring to the testing of the IQWIP EQ hammer. I'm hesitating a little bit.

Speaker #3: Because I think here, I'm bound by many NDA clauses. So I think it's rather a question to IQWIP, honestly, on the exact things. We have been supplying a vessel for these tests.

Speaker #3: That's correct. I'm also not sure that all the detailed results are there. What I can say is that there is a demand—which I also expressed in my previous question—for noise reduction measures.

Speaker #3: And that is something which, amongst others, with IQWIP we are looking at—let’s say—improving those solutions and reducing the noise’s impact on future installation plans.

Speaker #3: I would not say that this impacts us a lot for the moment. Again, let's await the detailed results, which I'm sure IQWIP will come up with for the market.

Luc Vandenbulcke: Again, let us await the detailed results, which I am sure IQIP will come up with to the market. If that is part of your question, we are perfectly able to handle that new tool, and we will for sure use it, if it demonstrates both noise reduction and same speed or speed improvements. That is a little bit what I can comment to that. Stijn, I think the second one was more on the JVs and on the guidance there.

Speaker #3: We are—if that is part of your question—we are perfectly able to handle that new tool. And we will for sure use it if it demonstrates both noise reduction and the same speed or speed improvements.

Speaker #3: So that's a little bit what I can comment to that. Stan, I think the second one was more on the JVs and on the guidance there.

Stijn Gaytant: Yeah. In detail, the contribution of joint ventures and earnings with EUR 59 million is high, certainly compared to year-on-year comparison basis. From the 59, EUR 10 million is related to concessions. They doubled their contribution compared year-over-year.

Speaker #1: Yes. So, in detail, the contribution of joint ventures in earnings, with €59 million, is high—certainly compared to a year-on-year comparison basis. So, from the €59 million, €10 million is related to concessions.

Speaker #1: So they doubled their contribution compared year over year. The remaining one is a big pool. We share in our yearly report, always, the total amount of joint ventures and associates.

Stijn Gaytant: The remaining one is a big pool. We share in our yearly report always the total amount of joint ventures and associates. There are about 70, which means that you have smaller contributions in there as well, and you have some projects as well. But of course, these projects, because they are lesser in the combination of the 70 entities, means that they are a bit more prone for project phasing, whether something is at the end of the project. So where in the total package of offshore segments, things are a bit balanced out, here you have temporarily higher figures. That is also the reason why I clearly mentioned just before that we should not expect a similar amount of contribution of joint ventures and associates for the second half. On your questions, why do we not guide on net results?

Speaker #1: There are about 70, which means that you have smaller contributions in there as well. And you have some projects as well. But of course, these projects, because they are lesser in the combination of the 70 entities, means that they are a bit more prone to project phasing—whether something is at the end of the project.

Speaker #1: So, whereas in the total package of offshore segments, things are a bit balanced out, here you have temporarily higher figures. That is also the reason why I clearly mentioned just before that we should not expect a similar amount of contribution from joint ventures and associates for the second half.

Speaker #1: On your question about why we do not guide on net results: well, for one reason, it is a bit related to this. But also, there are other elements—financial results, currencies can sometimes have a big impact, and it's not always that easy to predict.

Stijn Gaytant: Well, for one reason, a bit related to this, but also, there are other elements, financial results, currencies. It can sometimes have a big impact and is not always that easy to predict. That is why we are staying with turnover and EBITDA, bearing in mind that for 2027, of course, we are now talking about absolute terms and EBITDA and no longer in margins.

Speaker #1: So that is why we are staying with turnover and EBITDA. Bearing in mind that for 2027, of course, we are now talking about absolute turnover and EBITDA, and no longer in margins.

Speaker #3: Thank you Stan.

Carl Vanden Bussche: Thank you, Stijn.

Speaker #4: Yeah, very good. Yeah. Do you still hear me?

Thijs Berkelder: Yeah, very good. Yeah. Do you still hear me?

Speaker #1: Yeah, we do. We still hear you.

Carl Vanden Bussche: Yeah, we do. We still hear you.

Speaker #4: Yeah. Coming back to Luc, and maybe very important: are you currently primarily making use of the hammers of IQWIP, or are you also a customer of Menk?

Thijs Berkelder: Yeah. Coming back to Luc, and maybe very important, are you currently primarily making use of the hammers of IQIP, or are you also a customer of Menc? Given that Cadeler acquired Menc, how have you, or do you secure then your hammer demand for the next 10 years?

Speaker #4: And given that Skylar has acquired Menk, how have you or do you secure then your hammer demand for the next 10 years?

Speaker #3: Yes, I think this is a question which I can probably answer quite straightforwardly. There are a lot of pictures on the internet which can confirm this, and we have used a lot of IQWIP hammers. I gave you the progress on some of our projects.

Luc Vandenbulcke: Yes, I think this is a question which I can probably be quite straightforward. There is a lot of pictures on the internet which will confirm, and we have used a lot of IQIP hammers. I gave you the progress on some of our projects. We are very pleased with the performance there. We have also used and worked with Menc. Securing foundation installation techniques for the next 10 years is not a worry to DEME, for the reasons that I explained before. The foundation installation market, hammering is part of it. Impact hammering, you are talking. We have your previous question on EQ-Piling, where we certainly will see evolutions. We have vibrating, which becomes more and more performant. We have suction pile technology. We have the drilling. So it is not a concern.

Speaker #3: We are very pleased with the performance there. We have also used and worked with Menk. Securing the—I'm not going to say hammering—but securing foundation installation techniques for the next 10 years is not a worry to DEME.

Speaker #3: For the reason that I explained before, the foundation installation market—hammering is part of it. Impact hammering, you're talking about. We have your previous question on EQ, where we certainly will see evolutions. We have vibrating, which becomes more and more performant.

Speaker #3: We have suction pile technology. We have the drilling, so it's not a concern. We are doing that through normal market tendering, through framework agreements, to long-term partnerships.

Luc Vandenbulcke: We are doing that through normal market tendering, through framework agreements, through long-term partnerships. So we do not see an issue there.

Speaker #3: So, we don't see an issue there.

Speaker #4: Thank you. That's clear.

Thijs Berkelder: Thank you. That is clear.

Speaker #1: Okay, thank you. Next in line is Luke van Beek from Degroof Petercam. Good morning, Luke.

Carl Vanden Bussche: Okay. Thank you. Next one in line is Luc van Beek from Degroof Petercam. Good morning, Luc.

Luc van Beek: Yes, good morning. First of all, a question about the pipeline. You are very confident on the pipeline and the number of tenders ongoing. There was also a fear that was a bit more caution in the sense that they said that the macroeconomic environment is affecting the willingness to actually take decisions on the things in the pipeline. Is that something that you see any sign of? Furthermore, on the non-renewable energy, it went down quite a lot this year-on-year. Is there an opportunity for the coming years? Can you comment on if it was a one-off, and how do you look at the outlook for the non-renewable part for the next couple of years? A quick question on the working capital. It was down a lot in H1.

Luuk van Beek: Yes, good morning. First of all, a question about the pipeline. You are very confident on the pipeline and the number of tenders ongoing. There was also a fear that was a bit more caution in the sense that they said that the macroeconomic environment is affecting the willingness to actually take decisions on the things in the pipeline. Is that something that you see any sign of? Furthermore, on the non-renewable energy, it went down quite a lot this year-on-year. Is there an opportunity for the coming years? Can you comment on if it was a one-off, and how do you look at the outlook for the non-renewable part for the next couple of years? A quick question on the working capital. It was down a lot in H1.

Speaker #4: Yes. Good morning. First of all, a question about the pipeline. You are very confident about the pipeline and the number of tenders ongoing.

Speaker #4: I was also a peer that was a bit more cautious in the sensitive set of the macroeconomic environment affecting the willingness to actually take decisions on the things in the pipeline.

Speaker #4: Is that something that you see any sign of? And furthermore, on the non-renewable energy, it went down quite a lot this year, year on year.

Speaker #4: Is there an opportunity for the coming years? Can you comment on if that was a one-off, and how do you look at the outlook for the non-renewable part for the next couple of years?

Speaker #4: And a quick question on the working capital. It was down a lot in H1. Can you comment if we should take into account any special effects in H2 regarding milestones or other things?

Luc van Beek: Can you comment if you should take into account any special effects in H2 regarding milestones or other things, prepayments?

Luuk van Beek: Can you comment if you should take into account any special effects in H2 regarding milestones or other things, prepayments?

Speaker #4: Prepayments.

Speaker #1: Thank you, Luke. Could you maybe just repeat a little bit? The line was not so good on your first question. You were saying that you think we are confident on the pipeline, but there was a remark on the peers and your question was referring to that.

Luc Vandenbulcke: Thank you, Luc. Could you maybe just repeat a little bit because the line was not so good on your first question. You were saying that, I think, we are confident on the pipeline, but there was a remark on the peers, and your question was referring to that. I did not get that exactly. Could you repeat that?

Speaker #1: I didn't get that exactly. Could you repeat that?

Speaker #4: Yeah. So, do you see any signs that, due to, say, the macroeconomic uncertainty, people are slower in taking decisions on the projects they are tendering?

Luc van Beek: Yeah. So if you see any signs that due to, say, the macroeconomic uncertainty, people are slower in taking decisions on the projects they are tendering.

Luuk van Beek: Yeah. So if you see any signs that due to, say, the macroeconomic uncertainty, people are slower in taking decisions on the projects they are tendering.

Speaker #1: Okay, so I have your questions now. On the first one, as I mentioned before, we see a high volume of tenders ongoing.

Luc Vandenbulcke: Okay. So I have your questions now. On the first one, as I mentioned before, we see a high volume of tenders ongoing. We see also project awards. I also said, I think, in one of the questions before, it is true that in the Middle East, we see a healthy and specifically in the Middle East, we see a healthy tendering activity. But there, of course, the awards are clients are a bit hesitating to have the awards. Now, they make sure they prepare their projects, but they are waiting for a bit more stability in the region. But that is what we see only specifically in the Middle East. On the outlook, you were, I think, referring your question to renewables versus non-renewables. So in terms of renewables, that is offshore wind.

Speaker #1: We see also project awards. But I also said, I think in one of the questions before, it's true that in the Middle East we see a healthy—and specifically in the Middle East—we see a healthy tendering activity.

Speaker #1: But there, of course, the awards are—clients are a bit hesitant to have the award now. They make sure they prepare their projects, but they are waiting for a bit more stability in the region.

Speaker #1: So that's what we see specifically in the Middle East. Now, on the outlook, I think you were referring to a question about renewables versus non-renewables.

Speaker #1: So in terms of renewables, that is offshore wind. Non-renewables, as you know, you have seen that in our presentations, we also do erosion protection for pipelines.

Luc Vandenbulcke: Non-renewables, as you know, you have seen that in our presentations. We also do erosion protection for pipelines. We do decommissioning work. We have done in the past supporting works for nuclear. That all falls under the non-renewable. Yes, indeed, also there we see a healthy tendering activity and a pipeline of projects coming to the market.

Speaker #1: We do decommissioning work. We have done a number of supporting works for nuclear in the past. That all falls under the non-renewable.

Speaker #1: And yes, indeed, also there we see a healthy tendering activity and a pipeline of projects coming to the market. And then, on the working capital, yes, I'm very pleased that that has improved with roughly €100 million.

Carl Vanden Bussche: Then maybe Stijn.

Stijn Gaytant: Yeah. On the working capital, yes, I am very pleased that has improved with roughly EUR 100 million. That is amongst others, driven, of course, by the progress we are making on certain projects, which are linked to milestones and as such, payments. Secondly, also the advanced payments that we have currently in are higher compared than end of 2025. But overall, as I mentioned, working capital is roughly 20% of the turnover. I am quite pleased with that. If you look historically, the average on the last 12 years has been 19%. Should we expect very high increases? Well, that will depend a little bit maybe on what is the intake that is going to happen on future projects. But for the time being, I am quite pleased with where we are today.

Speaker #1: That's, amongst others, driven of course by the progress we're making on certain projects, which are linked to milestones and, as such, payments. Secondly, also the advance payments that we currently have are higher compared to the end of 2025.

Speaker #1: But overall, as I mentioned, working capital is roughly 20% of the turnover. I am quite pleased with that. If you look historically, the average over the last 12 years has been 19%.

Speaker #1: So should we expect very high increases? Well, that will depend a little bit, maybe on what the intake is going to be on future projects.

Speaker #1: But for the time being, I'm quite pleased with where we are today. Yeah, thank you. We'll now—thank you, Luke, as well—propose we just take two questions from the chat as well.

Carl Vanden Bussche: Yeah. Thank you. Thank you, Luc, as well. Propose we just take two questions from the chat as well. There is one from Tijs Hollestelle from ING. I think we briefly touched on the subject, but perhaps we can add some more color. Question is, "Why is there no material impact on profitability expected from the ongoing lower order intake and offshore energy division?" I assume he is pointing to 2027, where we said that EBITDA is expected to remain in line with 2025. Stijn or Luc?

Speaker #1: There is one from Thijs Holstelle from ING. I think we briefly touched on the subject, but perhaps we can add some more color. The question is: why is there no material impact on profitability expected from the ongoing lower order intake in the offshore energy division?

Speaker #1: I assume he's pointing to '27, where we said that EBITDA is expected to remain in line with '25. Maybe, Thijs, I don't know when you sent in the question exactly.

Luc Vandenbulcke: Maybe, Tijs, I do not know when you sent in the question exactly. I already gave a little bit of guidance, I think, on that. Especially pointing also at the higher turnover, but not necessarily higher margins, which were coming from the large US market, where you see that vessel occupation and, let us say, margins or vessel occupation is now moving to the European and Asian markets, where the turnover is somehow a bit lower because of the lesser logistics and less Jones Act activities, but where you have a good occupation of the fleet and, following from that also, rather a stable EBITDA.

Luc Vandenbulcke: Maybe, Thijs, I do not know when you sent in the question exactly. I already gave a little bit of guidance, I think, on that. Especially pointing also at the higher turnover, but not necessarily higher margins, which were coming from the large US market, where you see that vessel occupation and, let us say, margins or vessel occupation is now moving to the European and Asian markets, where the turnover is somehow a bit lower because of the lesser logistics and less Jones Act activities, but where you have a good occupation of the fleet and, following from that also, rather a stable EBITDA.

Speaker #1: I already gave a little bit of guidance. I think on that especially pointing also at the higher turnover but not necessarily higher volume higher margins which were coming from the large US market where you see that vessel occupation and let's say margins or vessel occupation is now moving to the European and Asian markets where the where let's say the turnover is somehow a bit lower because of the lesser logistics and less Jones activities.

Speaker #1: But where you have a good occupation of the fleet, and following from that, also rather a stable EBITDA. Yeah. I'll pick up one more from Patrick Millicon, Value Square.

Carl Vanden Bussche: Yeah. I will pick up one more from Patrick Millecam on Value Square. Referring to results out last week from Boskalis. They had a rather or more negative view on their outlook. The recent geopolitical developments continue to impact market conditions and investment decisions in various regions. This is particularly visible in parts of the dredging market and in certain offshore service activities. Do we agree on the view of Boskalis, or what is our take on that, I would say?

Speaker #1: Referring to results out last week from Boskalis, they had a rather or more negative view on their outlook. The recent geopolitical developments continue to impact market conditions and investment decisions in various regions.

Speaker #1: This is particularly visible in parts of the dredging market and in certain offshore service activities. Do we agree on the view of Boss Carlis, or what is our take on that, I would say?

Luc Vandenbulcke: Well, I think I have commented, I think, in the different questions already a little bit on this, Patrick. I think our message is referring to our own visibility and our own product mix, which for everybody is different. In our product mix and based on what we see today, we have our existing order book, we have the project pipeline, the fleet deployment, the ongoing tender activities. You have seen how we view the market and how we guide today. That is our view on our own activities.

Speaker #4: I think I've already commented a little bit on this in response to the different questions, Patrick. I think our message is referring to our own visibility and our own product mix, which, for everybody, is different.

Speaker #4: In our product mix, and based on what we see today, we have our existing order book, we have the project pipeline, the fleet deployment, and the ongoing tender activities. You have seen how we view the market and how we guide today, so that's our view on our own activities.

Speaker #1: No? Okay. Good. Very good. Thank you, Luke. And I think with this, we can bring the earnings call to an end. So, for sure, anyone with additional questions, please feel free to reach out to me directly.

Carl Vanden Bussche: No. Okay. Good. Very good. Thank you, Luc. I think with this, we can bring the earnings call to an end. For sure, anyone with additional questions, please feel free to reach out to me directly. You know where to find me. I would like to thank you all for participating and to thank Stijn and Luc for the presentation and for answering all these questions. Thank you. Meet you soon.

Speaker #1: You know where to find me. I would like to thank you all for participating, and to thank Stein and Luke for the presentation and for answering all these questions.

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Half Year 2026 DEME Group NV Earnings Call

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