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DEME: Global Offshore Contract Wins Will Drive Long-Term Upside Potential

Expanding Offshore Wind Markets Will Modernize Fleets But Face Risks

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DEME
AnalystConsensusTarget
Not Invested
Published 02 Mar 2025

Update shared on 15 Dec 2025

Fair value Decreased 0.47%
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Analysts have slightly reduced their price target on DEME Group by approximately EUR 1. This reflects a modestly lower fair value, despite marginally higher long term assumptions for revenue growth and profit margins, alongside a somewhat less demanding future earnings multiple.

What's in the News

  • Secured three contracts for monopile foundations, inter-array cables, and export cable installation at the BC-Wind offshore wind farm in Poland, reinforcing its role in the country's energy transition (company announcement).
  • Won Brazil's first auction for a port access channel concession via the Canal Galheta Dredging Consortium, obtaining a 25-year contract to operate, maintain, and expand the marine access channel to the Port of Parana (company announcement).
  • Obtained a sizable contract for transport and installation of inter-array cables at the Nordseecluster B offshore wind farm in Germany, a joint project of RWE and Norges Bank Investment Management (company announcement).
  • Through Taiwanese joint venture CDWE, landed a substantial contract for the Formosa 4 offshore wind farm in Taiwan, covering transport and installation of 35 foundations, the offshore substation, and scour protection works (company announcement).
  • Announced expansion of its fleet with a new Offshore Construction Vessel to enhance global subsea cable installation capacity, complementing existing vessels Living Stone and Viking Neptun (business expansion).

Valuation Changes

  • Fair Value: reduced slightly from approximately €176.67 to €175.83 per share, indicating a modest downward revision in the intrinsic value estimate.
  • Discount Rate: edged down marginally from about 8.73 percent to 8.70 percent, reflecting a slightly lower assumed risk profile or cost of capital.
  • Revenue Growth: risen slightly from around 2.13 percent to 2.25 percent, implying a modestly more optimistic long term top line outlook.
  • Net Profit Margin: increased slightly from roughly 7.02 percent to 7.24 percent, suggesting a small improvement in expected long term profitability.
  • Future P/E: fallen moderately from about 17.64x to 16.97x, pointing to a somewhat less demanding valuation multiple on forecast earnings.

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Disclaimer

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