Offshore Wind Construction Break-Even: $415K Monthly Revenue

Fixed costs $331.7K/mo Base overhead plus payroll

Contribution margin 80% After variable costs

Break-even revenue $414.6K/mo Monthly revenue target

Break-even timing Month 1 Model breakeven point

Break-even calculator

Test whether monthly project revenue can cover direct costs and fixed overhead for offshore wind farm work.

Lean Base Full

Monthly revenue Revenue is the cash pool that covers direct costs and overhead. $ Early stage Peak year Variable expenses Use direct project costs that rise with revenue. $ Tight costs Heavy costs

Money available to cover fixed costs $107,425,500 $131,166,667 revenue - $23,741,167 variable expenses

Margin ratio

82%

Covers fixed costs

Yes

Fixed monthly costs This is the monthly overhead your margin has to cover. $ Lean team Large team

Break-even chart Revenue Total costs

Which offshore wind construction expenses are fixed, variable, semi-variable, or semi-fixed for break-even?

Cost classification

Break-even is only reliable if recurring overhead stays separate from activity-linked project work. In this model, fixed office and insurance run monthly, while vessel, subcontractor, compliance, and support costs move with revenue or step up with staffing.

Expense	Cost	Break-Even Treatment	Common Mistake
Corporate Office Rent	Fixed	Include as $50,000 of monthly overhead from Month 1 through Month 60.	Don’t tie headquarters rent to project revenue.
Vessel Operation & Project Logistics	Variable	Model at 12.0% of first-year revenue, falling to 10.0% by Year 5.	Don’t treat vessel use as free capacity.
Subcontractor Services & Equipment Rental	Variable	Model at 6.0% of first-year revenue, falling to 5.0% by Year 5.	Don’t bury overruns below gross margin.
Project Management & Engineering Support	Semi-variable	Use 1.0% of first-year revenue, then scale down to 0.6% by Year 5 as delivery volume rises.	Don’t assume managers scale without added spend.
Regulatory Compliance & Environmental Monitoring	Variable	Apply 1.0% of first-year revenue, declining to 0.6% by Year 5.	Don’t ignore monitoring tied to project activity.
General Corporate Insurance	Fixed	Include as $25,000 of monthly overhead from Month 1 through Month 60.	Don’t confuse corporate cover with project-specific risk.
Senior Project Manager Payroll	Semi-fixed	Step payroll from 1.0 FTE in Year 1 to 5.0 FTE by Year 5 as signed work expands.	Don’t hire ahead of signed backlog.

How does break-even change from lean mobilization to full utilization in offshore wind construction?

Scenario table

Break-even improves as backlog fills because the contribution margin ratio (revenue left after variable costs) stays high while fixed overhead gets spread across more project value. That makes scale the main cushion, not cost cutting.

Planning assumptions only; these scenario figures are not guarantees.

Scenario	Monthly Revenue	Variable Costs	Fixed Costs	CM Ratio	Operating Profit	Break-Even Signal
Lean mobilization	$19.2M	$3.8M	$332K	80.0%	$15.0M	About $415K a month, so the lean case has a wide cushion.
Base single-project case	$105.5M	$20.2M	$353K	80.9%	$85.0M	About $436K a month, and one signed project still covers overhead easily.
Full utilization	$233.5M	$40.0M	$455K	82.9%	$193.1M	About $549K a month, so the main test is keeping crews and vessels fully loaded.

What breaks the break-even plan if mobilization slips or marine costs spike?

Stress test

The plan clears break-even early, but cost creep is the real threat. Vessel day rates, labor overtime, subcontractor overruns, insurance, and weather delays can push the floor up fast, and cash still bottoms near the Month 12 low of -$570.6M.

Stress Case	Changed Assumption	Break-Even Revenue	Revenue Gap	Risk Signal
Current plan	No change.	$436,000/month	$1.261B cushion	Big cushion, but Month 12 cash still bottoms hard.
Revenue shortfall	Cut Year 2 revenue by 25%.	$436,000/month	$944.6M cushion	Delayed mobilization hits revenue, but break-even stays covered.
Fixed-cost increase	Raise fixed overhead by 25%.	$545,000/month	$1.260B cushion	Higher rent, insurance, and support costs lift the floor fast.
Margin pressure	Add 5 points to variable expense rates.	$464,000/month	$1.261B cushion	Vessel day-rate spikes and subcontractor overruns squeeze margin.
Combined pressure	Cut revenue 25%, raise fixed costs 25%, and add 5 points to variable expenses.	$581,000/month	$942.9M cushion	All three shocks together tighten cash, but the plan still clears.

What should you verify before you commit to the first $500M vessel build?

Founder checklist

Don’t lock the $500M newbuild WTIV until you have signed project backlog, vessel-day demand, and cash to cover the Month 12 trough. The model shows Month 1 operating break-even, but cash still falls to -$570.6M, so paper EBITDA is not enough.

1Signed backlog1 project

Verify at least one signed wind farm project before ordering the newbuild vessel, because Year 1 has 0 projects and the first real revenue starts later.

2Fixed load$331.7K/mo

Check that monthly rent, office, insurance, legal, software, travel, and Year 1 wages can be carried without turning every delay into a cash problem.

3Margin floor80% CM

Confirm project bids leave enough contribution margin after vessel operations, subcontractors, engineering, and compliance support, or the break-even math gets shaky fast.

4Crew ramp100-300 days

Map hiring to vessel charter days from 100 in Year 1 to 300 in Year 5, so crews grow with booked work instead of ahead of demand.

5Launch stageMonth 3-9

Hold port space, staging yard access, support vessel timing, and charter compliance in place before mobilization, or the first project can slip before revenue starts.

6Cash cushion-$570.6M

Fund past the Month 12 cash low and weather-window downtime, because Month 1 operating break-even does not mean the bank balance is safe.