DEME (AO) | Buy | New large hopper order underpins confidence in dredging outlook

Research evidence excerpt

DEME (AO) | Buy | New large hopper order underpins confidence in dredging outlook

News comment

Release date: 02 July 2026

Philip Ngotho, CFA

Equity Research Analyst

+31 20 563 2367

pngotho@keplercheuvreux.com

BuyDEME

Belgium | Energy equip. & services MCap: EUR4.3bn

Target Price: EUR240.00 Bloomberg: DEME BB Reuters: DEME.BR

Current Price: EUR171.40 Free float 26%

Up/downside: 40.0% Avg. daily volume (EURm) 3.9

YTD abs performance 22.6% Market data: 01 July 2026

52-week high/low (EUR) 204.00/121.40

New large hopper order underpins confidence in dredging outlook

Key points:

Yesterday, DEME announced that it has ordered a new hopper (22k m3 capacity) to strengthen its dredging fleet. Once delivered

the vessel will belong to one of the larger hoppers within DEME's fleet.

Delivery of the vessel is scheduled for 2029 and the capex level is indicated to be between EUR 150-300m. Importantly, DEME's FY

2026 capex guidance of about EUR 450m is left unchanged.

Overall, we see the order as a logical fleet-renewal and growth investment and the news as an incrementally positive indicator on

the prospects for the dredging market outlook. We reiterate our Buy rating as as in our view DEME offers a balanced mix of more

steady infrastructure cash flows (dredging) and secular clean-energy growth (offshore wind). The shares, trading at a double-digit

FCF yield, remain attractively valued in our view.

Details

The hopper will feature an advanced power plant and propulsion system, a hydrodynamically optimized hull, more efficient

dredging technology, and a high level of automation. DEME expects these features will lead to higher productivity, improved

energy efficiency and stronger operational reliability, ultimately improving the vessel’s cost competitiveness.