Highlights Financial Year 2024
▪ Orderbook stands at 8.2 billion euro at the end of the year, up from 7.6 billion euro a year ago
▪ Group turnover grew 25% year-over-year to 4.1 billion euro, with solid growth in all contracting segments
▪ EBITDA rose 28% reaching 764 million euro, or 18.6% of turnover, up from 596 million euro, or 18.2% of turnover for 2023
▪ Net profit increased by 77%, reaching 288 million euro, compared to 163 million euro a year ago
▪ Unprecedented free cash flow generation in 2024, amounting to 729 million euro; resulting in a net cash position of 91 million euro at year-end from a net financial debt of 512 million euro at the end of 2023
▪ Proposal for a gross dividend of 3.8 euro per share, compared to 2.1 euro a year ago
DEME delivered another record performance in 2024 with strong turnover and profit growth, as well as substantial free cash flow resulting in a net cash position at year end. Surpassing 4 billion euro, turnover grew 25%, reflecting high activity levels and solid project execution across all of our contracting segments. Also, the orderbook reached a record level exceeding 8 billion euro, reflecting a very strong fill rate that outpaced the significant conversion of backlog into revenues. The Group said in a press-release.
The Offshore Energy segment grew its revenue 37% year-over-year, driven by continued solid demand, expanded fleet capacity, high utilization and effective project execution across Europe, APAC and the US. Also, the Dredging & Infra segment performed well and grew year-over-year 22%, on a range of projects including maintenance and capital dredging projects across the globe as well as major infrastructural projects in Europe. The Environmental segment delivered a revenue growth of 11%, advancing its long-term projects in Belgium, the Netherlands, UK and Norway.
EBITDA grew at a slightly faster rate than revenues, rising by 28% to 764 million euro, up from 596 million euro a year ago. The group EBITDA margin was 18.6%, up from 18.2% last year, primarily reflecting a year-over-year improved performance in the Offshore Energy segment. EBIT grew from 241 million euro for 2023, or 7.3% of turnover, to 354 million euro for 2024, equivalent to 8.6% of turnover.
The net profit for the group was 288 million euro, up from 163 million euro for 2023 and included positive contributions from both joint ventures and associates and more favorable financial results. In line with the capital expenditure budgeted for the year, investments for 2024 amounted to 286 million euro compared to 399 million euro a year ago. Capital expenditure was mainly spent on selected expansions of DEME’s fleet capabilities, mainly in its Offshore Energy segment along with capitalized maintenance investment.
Free cash flow1 for the year was notably strong, reaching 729 million euro, compared to 62 million euro for the previous year. This improvement was driven by a significant increase in DEME’s turnover, profitability, a positive impact of working capital, and a lower investment level. As a result, DEME reversed its net financial debt position of 512 million euro at the end of 2023 to a net cash position of 91 million euro at the end of 2024.
Dividend
In line with DEME’s dividend policy, targeted to a pay-out ratio of 33 % of the group’s net profit, the Board of Directors will propose to the General Assembly a gross dividend of 3.8 euro per share, marking an 81% increase compared to last year.
Subject to the approval of the General Assembly, the dividend payment date is proposed to be set at 30 May 2025.
DEME’s orderbook reached a new record, exceeding 8 billion euro, even with the high conversion of backlog into revenue. The year-over-year growth of 8% was mainly driven by continued increases in Offshore Energy orders. While Dredging & Infra experienced a more moderate but still healthy rise, Environmental maintained a stable orderbook. Key additions in 2024 included four major cabling contracts in the Netherlands and Belgium, foundation transport and installation projects in Taiwan and Germany, and Dredging & Infra projects in various regions.
Europe retained its leading position for DEME, achieving 32% year-over-year growth and representing 71% of the group’s orderbook. In contrast, all other regions saw a decline compared to a strong 2023. With effective project execution on several offshore projects along the US East Coast and minor new additions in 2024, the orderbook for the Americas region declined from 18% of the total a year ago to 12% today, representing a 24% decrease in nominal value.
The orderbook run-off provides mid-term visibility, supporting our guidance in combination with project pipeline and vessel planning. The current orderbook run-off includes a volume for 2025 in line with a year ago and volumes exceeding 4.5 billion euro spread across 2026 and beyond.
The group's turnover increased sequentially each quarter, reaching a record high of more than 4.1 billion euro. For the second year in a row, topline growth exceeded 20% year-over-year. The growth was driven by double-digit increases in all contracting segments, reflecting high activity levels and effective project execution throughout 2024.
The main projects for the Offshore Energy segment included Dogger Bank and Moray West in the UK, Coastal Virginia in the US, Île d’Yeu and Noirmoutier in France, and Zhong Neng and Hai Long in Taiwan. The Dredging & Infra segment made good progress in maintenance and capital dredging projects across Europe, Africa, Asia, and the Middle East, and advanced its marine infrastructure works, including the installation of immersed tunnels in continental Europe. The Environmental segment continued its remediation and high-water protection work in Belgium, the Netherlands, the UK, and Norway.
The geographical breakdown highlights DEME’s continued strong position in Europe, with doubledigit year-over-year growth in 2024. For the second consecutive year, America was DEME’s secondlargest market, showing marked growth fueled by solid progress on its ongoing offshore projects. Africa, Asia, and the Middle East each contributed between 5% and 10% of the group's total turnover, with significant year-over-year growth, supported by a healthy project intake in recent years.
DEME realized an EBITDA of 764 million euro in 2024 or 18.6% of turnover, a 28% increase compared to 596 million euro or 18.2% of turnover for 2023. The Offshore Energy segment saw a significant EBITDA margin increase from 15.4% to 21.0%, more than offsetting the slightly softer performance of the Dredging & Infra and Environmental segments, both of which faced a more challenging comparison with 2023.
Fueled by a robust EBITDA, EBIT amounted to 354 million euro or 8.6% of turnover compared to 241 million euro, or 7.3% of turnover last year, an increase of 47%.
Depreciation and impairment expenses amounted to 411 million euro, compared to 355 million euro a year ago. The increase in depreciation costs is due to investments in upgrading ‘Sea Installer’ and converting ‘Yellowstone’, DEME’s new fallpipe vessel, added in 2024, and IFRS 16 leases. The amount also includes 15 million euro impairment losses compared to 13 million a year ago.
The net profit for 2024 amounted to 288 million euro, an increase of 77% compared to the 163 million euro last year, driven by the increase in turnover, stronger profitability, good results from both joint ventures and associates and more favorable net financial results. As a result, earnings per share (basic and diluted) were 11.4 euro per share, compared to 6.4 euro for 2023.
At the end of 2024, investments in intangible assets and property, plant, and equipment9 amounted to 286 million euro, compared to 399 million euro a year ago, marking a year of lower investment intensity compared to previous years. In addition to capitalized maintenance and recurring investments, the investments included ‘Yellowstone’, DEME’s new fallpipe vessel, which had her official naming ceremony in June 2024, as well as ‘Karina’, an offshore survey vessel that was added to the fleet and put into operation during the first half of the year.
Operating working capital stood at -813 million euro up from -575 million euro at the mid-year point and -471 million euro as of 31 December 2023. This increase is due to a mix of factors including growth in turnover and increase in advance payments received from customers.
Fueled by the positive profitability, lower investment levels and the positive impact of operating working capital, the free cash flow for the year was a positive 729 million euro up from 278 million euro end of June 2024 and 62 million euro at the end of last year.
The net financial debt of 512 million euro at the end of last year was reversed to a net cash position of 91 million euro. Total cash amounted to 853 million euro compared to 389 million euro at the end of last year.