Posted on June 15, 2026
A DredgeWire Exclusive
Royal IHC made meaningful operational and financial progress during 2025, as its extensive (110 page) Annual Report suggests. But the company remains unprofitable and financially fragile despite reporting its strongest order intake in at least five years. Management believes the turnaround phase is largely complete and expects a return to profitability in 2026, but that outcome will depend on successful execution of a growing backlog and continued access to financing.
KEY FINANCIAL RESULTS
Revenue increased to €487.2 million (equivalent to more than US$550mm) from €436.4 million in 2024, an increase of 11.6%.
New orders reached €638.9 million, up 66% from €384.9 million in 2024.
The order backlog increased 37.5% to €546.3 million.
EBITDA improved to €3.0 million from €1.4 million, which is still quite thin for an organization of the magnitude of Royal IHC.
Net loss improved to €24.9 million compared to a loss of €33.4 million in 2024.
Equity declined to €88.2 million from €109.0 million.
POSITIVE DEVELOPMENTS
Revenue reached its highest level in five years. Order intake was the strongest reported during the last five years, and significantly exceeded deliveries, resulting in a sharply bigger backlog.
RISK
Whereas larger technically challenging projects have occasionally caused difficulties for Royal IHC in the past, in 2025 smaller projects, which the company defines as less than €50 million per project, accounted for 60% of reported revenue.
The company says it is on track to deliver the 31,000 m³ mega hopper dredge for Boskalis, named Seaway, later this year.
The launching for that dredge occurred on schedule in October last year.
See:
https://boskalis.com/press/press-releases-and-company-news/boskalis-orders-large-31-000-m3-trailing-suction-hopper-dredger-from-royal-ihc
EBITDA (Earnings before Interest, Depreciation, and Amortization– a measure of cash flow) remained positive, albeit modestly so, for the second consecutive year, confirming that operational performance has stabilized after several difficult years.
Royal IHC also completed a major debt refinancing during 2025, providing greater financial stability and improved access to guarantee facilities needed to support future project growth. The company had a bank debt guarantee of over €200 million in connection with the Boskalis hopper. This loan was partly secured by Boskalis, but it matured as planned when the hopper was launched. Ongoing implicit support from Boskalis and the foundation which controls Royal IHC should offer financial comfort to third party counter parties.
Just last month, in May 2026, the company received approval for an increase of €50 million on its guarantee line from the Dutch ECA (Export Credit Agency.) This financing will help support its backlog and new orders, especially two new hoppers.
USA MARKET
Royal IHC is working on two important hopper dredge projects in the USA. Both are being built at Eastern Shipbuilding Group, one for the US Army Corps of Engineers, and an 8000 m3 hopper for Dutra Group, to be named the Adele.
CONTINUING CHALLENGES
Despite operational improvements, Royal IHC remains loss-making. The company lost €24.9 million ($29mm) during 2025 and has reported losses in four of the last five years. The only profitable year during that period, 2023, was driven by the sale of its subsidiary IQIP rather than underlying operating performance. That sale generated a gain of €173 million–almost $200 million.
Equity has continued to decline with these accumulated losses. Working capital deteriorated from negative €5.9 million as of 12/31/2024 to negative €38.0 million as of 12/31/2024, increasing reliance on project milestone payments and financing facilities.
Employment has remained fairly stable at around 1800 people, and in fact increased slightly in 2025. This compares to over 3300 people in 2020 before restructurings.
MARKET OUTLOOK
Dredging remains Royal IHC’s core business. Royal IHC says that demand for its Beaver cutter suction dredgers (dismountable and transportable units) remains strong, especially for larger models. The company also reported growing interest in low-emission dredging equipment and increased use of international shipbuilding partners, particularly in Vietnam.
The offshore business performed well, particularly in cable-lay vessels and subsea telecommunications infrastructure. Orders for two cable-lay vessels and associated equipment highlight growing demand in this market.
The mining segment remains challenged by commodity market uncertainty and project delays, although management reports a strong project pipeline and growing opportunities in critical minerals and tailings remediation. The company has been doing a lot of work for the Irish mineral sands miner Kenmare for its mines in Southern Africa.
Defense Taking a Major Position
The defense sector may represent the company’s most significant long-term growth opportunity. Royal IHC signed a framework agreement with Naval Group related to the Dutch Navy’s ORKA-class submarine program and expects increased European defense spending to create substantial opportunities over the next decade. The Naval Group order includes four subs. The company cited an increased commitment to spending by NATO and Russia’s war against Ukraine as driving expectations for significant future growth in this sector. The Netherlands alone plans to increase its defense spending by €5 billion per year starting in 2026.
ISSUES TO WATCH IN 2026
The most important question is whether Royal IHC can achieve its stated objective of returning to profitability in 2026.
POSITIVE DEVELOPMENTS
Revenue reached its highest level in five years. Order intake was the strongest reported during the last five years, and significantly exceeded deliveries, resulting in a sharply bigger backlog.
The company’s auditor KPMG issued a clean and unqualified opinion on the Annual Report.
CONCLUSION
Royal IHC’s 2025 results demonstrate substantial progress compared with its crisis years. Revenue, order intake, backlog, and EBITDA all improved materially, while refinancing strengthened the company’s financial foundation.
However, Royal IHC is not yet financially healthy. The company continues to lose money, equity has declined, and profitability remains a future objective rather than a current reality. The success or failure of 2026 will largely depend on management’s ability to convert its strong order book into sustainable positive earnings and positive cash flow.
