Mammoet

Mammoet is committed to helping the world grow safely and efficiently towards a sustainable future. The energy transition, decarbonization efforts and technological advancements continued to drive sectors such as wind, hydrogen, nuclear, green steel, construction and industrial services. Despite state and national government support and funding, a number of financial and technological challenges have resulted in delays to some already announced projects.

In the face of persistent high demand for energy, the energy transition is making slower progress than expected. As a result, a substantial share of demand continues to be met by the oil and gas industry. Mammoet maintains a strong position in the sector, despite reducing its dependency from 65% of revenues in 2014 to 40% in 2024.

These positive market developments have been counterbalanced somewhat by ongoing equipment-related challenges such as electrification, as well as inflationary pressures. Workforce shortages remain, with skilled engineers, crane operators, rigging specialists, and safety experts all being sought after in a competitive labor market. Mammoet continues to focus on hiring, training and managing a global workforce to mitigate this challenge. And while the Group has invested in electric and hybrid cranes as part of its sustainability goals, current technology is still not quite able to meet the exacting demands of heavy lifting and higher-capacity equipment. Fluctuating steel prices, global supply chain disruptions, and geopolitical tensions continue to add pressure to equipment procurement and cost management.

To maintain its leading position in the market both today and in the future, Mammoet is now implementing Project Elevate. The goal is to deploy equipment and expertise where it can best add customer value by operating in a more agile, more efficient and more effective manner that also accelerates decision-making. Project Elevate focuses on three key areas: further simplification of the portfolio, driving profitable growth, and optimizing the asset base.

Eliminating the regional layers and restructuring the business around two service lines has significantly streamlined the organization to enhance business focus, bring top management closer to operations, and facilitate faster decision-making. And by allowing more precise insights to be generated, it has also equipped the business to swiftly adapt to changing external factors.

Important steps have also been taken to improve asset utilization based on market choices and improved data analytics on crane usage. This has resulted in a reduction of assets, while also revamping and expanding the high-capacity crane fleet to effectively meet increased global demand. The SK6000 – the world’s strongest land-based crane – has been tested for fully electric operation and now offers zero-emission capabilities for projects anywhere in the world.

The Sherpa program, aimed at replacing Mammoet’s current core ERP application environment, is now underway and the first successful go-lives took place in 2024. The program is expected to reduce costs, increase asset utilization rates, and improve project and personnel planning. A phased, global roll-out is planned for 2025 and 2026.

Work continues to minimize exposure to outstanding claims. The Amuriyah and New York Wheel cases are both ongoing and did not have any financial impact on 2024 results.

With a stable order book, a strong project pipeline, and an externally validated analysis of long-term market trends, Mammoet is confident in achieving its topline goals for the coming years along with a continued improvement in bottom-line performance.