DEME marked the year 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 (US$4.2 billion), turnover grew 25 per cent, reflecting high activity levels and solid project execution across all of the group's contracting segments. Also, the orderbook reached a record level exceeding €8 billion (US$8.3 billion).
The offshore energy segment grew its revenue 37 per cent year-over-year, driven by continued solid demand, expanded fleet capacity, and high utilisation across Europe, APAC and the US.
Also, the dredging and infrastructure segment performed well and grew year-over-year 22 per cent, on a range of projects including maintenance and capital dredging projects across the globe as well as major infrastructural projects in Europe.
The environmental segment delivered a revenue growth of 11 per cent, advancing its long-term projects in Belgium, the Netherlands, UK and Norway.
EBITDA grew at a slightly faster rate than revenues, rising by 28 per cent to €764 million (US$), up from €596 million (US$) a year ago. The group EBITDA margin was 18.6 per cent, up from 18.2 per cent last year, primarily reflecting a year-over-year improved performance in the offshore energy segment.
EBIT grew from €241 million (US$) for 2023, or 7.3 per cent of turnover, to €354 million (US$) for 2024, equivalent to 8.6 per cent of turnover.
The net profit for the group was €288 million (US$), up from €163 million (US$) for 2023 and included positive contributions from both joint ventures and associates and more favorable financial results.
In line with the capital expenditure budgeted for the year, investments for 2024 amounted to €286 million (US$) compared to €399 million (US$) a year ago. Capital expenditure was mainly spent on selected expansions of DEME’s fleet capabilities, mainly in its offshore energy segment along with capitalised maintenance investment.
Free cash flow for the year was notably strong, reaching €729 million, compared to €62 million for the previous year. This improvement was driven by a significant increase in DEME’s turnover, profitability, a positive impact of working capital, and a lower investment level.
As a result, DEME reversed its net financial debt position of €512 million (US$) at the end of 2023 to a net cash position of €91 million (US$) at the end of 2024.
Considering the current project schedules in the backlog, the pipeline of new opportunities, and fleet capacity, DEME’s management expects turnover and EBITDA margin for 2025 to be at least in line with 2024.
CapEx for 2025 is estimated to be around €300 million (US$), before larger fleet capacity expansion investments that may be decided upon to support longer term growth opportunities.
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 €3.80 (US$) per share, marking an 81 per cent increase compared to last year.