Key insights
- The author discusses buying Cadeler stock before earnings, highlighting its focus on offshore wind construction, strong operating margins, and growth potential driven by Europe's renewable energy targets. While Cadeler's direct impact on US equities is limited, the broader trend of renewable energy investment and infrastructure development in Europe could indirectly benefit US companies in the sector.
Now I have been buying Cadeler stock every other month, whenever it dips and as present it has dipped the day before their Q1 2026 earnings.
It is an offshore construction company that focuses on offshore wind construction only. They have the biggest and the most modern WTIV fleet in Europe and plan to grow their revenue 45% in 2026.
Operating margin is at 50%, which speaks volumes about the quality of the revenue. A generalist offshore construction as deme is operating at 10% margin and trades at PE of 16. Cadeler trades at PE of 8.
Europe is aiming for 300GW of renewable energy by 2030, now i am not sure if they gonna make it. But they certainly will try. Cadeler's backlog is already at 2.8 billion euros and growing each quarter.
Quick review of the company:
https://youtu.be/xbkxdC1qkhg?si=wG7aaxJWNIFnAzQg
And also if you want a consice video that explains the political will behind the move, here's the interview of EU energy commissioner:
Literally saying that offshore wind investments would have political support.