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Fugro N.V. Earnings Release 2025
3845_rns_2025-04-24_ffee5887-5141-485a-ad03-ca101551a625.pdf
Earnings Release
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FUGRO
Press Release
Trading update Q1 2025
Leidschendam, the Netherlands, 24 April 2025
Fugro continues measures to offset margin pressure amid economic uncertainties
- Rapidly changing geopolitical and economic uncertainties are impacting client behaviour globally, adding to adverse developments in the US market, as stated in the 15 April 2025 press release
- Revenue decline of 11% compared to a strong Q1 2024
- EBIT margin of 0.2%; ongoing implementation of measures to safeguard margin
- Operating cash flow before changes in working capital decreased to EUR 21.2m (Q1 2024: EUR 65.4m)
- 12-month backlog declines modestly by 3.3%, reflecting current market dynamics
- Outlook full-year 2025: EBIT margin within target range of 11-15%, reassess revenue outlook when greater economic and market clarity materialises.
| Key figures (x EUR million) | ||
|---|---|---|
| Unaudited | Q1 2025 | Q1 2024 |
| Revenue | 450.0 | 503.2 |
| comparable growth^{1} | (11.1%) | 9.0% |
| EBITDA^{2} | 43.9 | 82.8 |
| EBIT^{2} | 0.8 | 44.2 |
| EBIT margin^{2} | 0.2% | 8.8% |
| Operating cash flow before changes in working capital | 21.2 | 65.4 |
| Cash flow from operating activities after investing (free cash flow)^{3} | (84.4) | (58.0) |
| Backlog next 12 months | 1,482.2 | 1,544.2 |
| comparable growth^{1} | (3.3%) | 9.9% |
- Corrected for currency effect
- Adjusted for specific items
- Including discontinued operations
Refer for definitions of non-IFRS measures to the glossary in the additional information to the 2024 annual report.
Mark Heine, CEO: "The year was off to a challenging start. Market conditions have rapidly shifted, making clients more hesitant to commit to new projects. This happened while we were already adapting our Americas operations to the new political reality in the US. We expect ongoing impacts of these market uncertainties into the second quarter. Our immediate priority is the continued implementation of measures to safeguard profitability and cash flow, without losing momentum on our long-term strategy Towards Full Potential.
Through proactive engagement with our clients, we can seize the many opportunities that lie ahead, supported by strong mid-term fundamentals and our market position in the various segments. Emerging markets such as critical minerals and the surveillance of critical underwater infrastructure present promising opportunities, highlighted by our recent award from the Dutch Ministry of Defence for a marine security and surveillance vessel in partnership with Damen.
In recent years, we have transformed into a resilient and well-diversified business with a strong balance sheet. This enables us to act quickly and effectively in these times of uncertainty, supporting the generation of solid results through the cycle."
Press Release – Trading update Q1 2025
TUGRO
Review Q1 2025
Revenue in the first quarter decreased by 11.1% on a currency comparable basis. In accordance with the guidance provided during the publication of the 2024 results, the shift in the US political landscape has led to a pause in new offshore wind projects. Furthermore, the highly volatile market environment is now impacting Fugro's business in other regions as well. We see some scope reductions of projects and award decisions taking longer, exacerbating the typically slow start to the year.
In Marine, revenue declined by 9.7%. Overall vessel utilisation was 61% versus 65% in the comparable period last year. In the Americas region, a lack of offshore wind site characterisation projects was only partly mitigated by higher activity levels in traditional energy markets. In Europe-Africa, we faced reduced volume of offshore wind development projects in combination with lower availability of the geotechnical vessel fleet, caused by a relatively large number of maintenance days and extended vessel conversions. Land revenue declined by 15.6%, which was primarily driven by the restructuring of the UK onshore site characterisation business (in the second quarter of 2024) and less nearshore projects in the Europe-Africa region, and projects in the Middle East (UAE and Egypt) shifting to later in the year.
The EUR 43.4 million EBIT decline, compared to a strong first quarter of 2024, was primarily as a consequence of lower marine site characterisation revenue in the Europe-Africa and Americas regions.
We continue to implement measures to safeguard profitability. These include reducing short-term charters, third party personnel and equipment. We have implemented a hiring freeze for non-project staff and will continue with targeted workforce reductions. At the same time, we continue to focus on high-quality execution of projects, digital workflows and remote operations.
In line with the EBITDA development, operating cash flow before changes in working capital decreased by EUR 44.2 million to EUR 21.4 million. Working capital performance was solid at 8.2% of 12-months revenue, compared to 12.8% a year ago. Capex amounted to EUR 100.9 million, largely related to the final phase of the geotechnical fleet expansion programme and vessel conversions. On balance, free cash flow was negative EUR 84.4 million (Q1 2024: negative EUR 58.0 million). Net debt was EUR 239.5 million per the end of the quarter compared to EUR 96.2 million at year-end 2024, mainly driven by the negative free cash flow. Net leverage amounted to 0.5x.
Outlook 2025
The 12-month backlog declined modestly by 3.3% compared to March 2024, reflecting current market dynamics. Even though our business operations are not directly impacted by US trade tariffs, current related developments are leading to increased market uncertainty.
By implementing measures to safeguard our profitability, we remain confident that we will deliver within our mid-term EBIT margin target range of 11-15% for the full year. We will continuously monitor market developments and reassess the full-year revenue outlook when greater economic and market clarity materialises.
Even with the current headwinds, we remain fully committed to executing our strategy Towards Full Potential. Fundamentals in our core market segments remain strong, and we continue to see growing opportunities in emerging areas such as critical minerals and surveillance of critical underwater infrastructure; areas in which we are well-positioned to lead.
Press Release – Trading update Q1 2025
TUGRO
Recent project awards
- Europe-Africa region: multi-year agreement with Northern Powergrid in the UK for asset management services using ROAMES® technology; contract with SSE for geotechnical surveys to support one of the world's largest offshore wind opportunities at Berwick Bank off the coast of Scotland; call-off contract with Vattenfall for UXO identification and clearance surveys as part of the development of the Nordlicht offshore wind farm in Germany; and a new USV-based hydrographic survey contract from the Norwegian Hydrographic Service (2025 MAREANO seabed mapping programme).
- Americas region: geotechnical investigation to support floating LNG development for Southern Energy in Argentina's Gulf of San Matias; deepwater geophysical and environmental surveys during summer 2025 with AUV technology for Equinor's Bay du Nord project offshore eastern Canada; two contracts with Brazilian offshore company Constellation to provide ROV services from Amaralina Star and Tidal Action vessels; nearshore and onshore site characterisation services for Jacobs to support US infrastructure modernisation at Wake Island in the Indo-Pacific; and geotechnical site investigation and engineering foundation/ stability recommendations on a connector roadway in Louisiana for TRC Engineers, Inc.
- Asia Pacific region: additional offshore geotechnical site investigation for an offshore wind client in South Korea; call-out for an underwater inspection campaign on North-West Shelf in Australia and further ground investigation projects for infrastructure developments in Hong Kong.
- Middle East & India region: Geophysical and geotechnical site investigations for the Dubai Metro Blue Line project, awarded by the MAPA - LIMAK - CRRC HK consortium; an offshore visual inspection survey in Qatar for Pearl GTL by Shell; as-built survey using ROV for offshore pipelines for the North Field Production Sustainability Project for SAIPEM; and a service contract for the Riyadh Expo 2030 involving onshore site investigations and geophysics, using GroundIQ® technology.
Analyst call
At 08:30 CET, Fugro will host an analyst call. The dial-in numbers +31 (0) 20 708 5073 or +44 (0) 33 0551 0200; please quote Fugro when prompted by the operator. This call can also be followed via audio webcast: https://www.fugro.com/investors/results-and-publications
Financial calendar
24 April 2025
1 August 2025
31 October 2025
Annual general meeting of shareholders (at 2:00 CET)
Publication half-year 2025 results
Publication Q3 2025 trading update
For more information
Media
Serge van de Ven
[email protected]
+31 70 31 11129
+31 6 3094 2428
Investors
Catrien van Buttingha Wichers
[email protected]
+31 70 31 15335
+31 6 1095 4159
About Fugro
Fugro is the world's leading Geo-data specialist. With our unique map, model and monitor solutions, we provide project critical insights into the built and natural environment. Fugro supports clients by delivering solutions in support of the energy transition, large-scale infrastructure development and climate resilience. With expertise in site characterisation and asset integrity, clients are supported in the safe, sustainable and efficient design, construction and operation of their assets throughout the life cycle. In line with our purpose, we are extending our know-how and solutions to the understanding and preservation of ecosystems.
Press Release – Trading update Q1 2025
TUGRO
Employing approximately 11,000 people in 52 countries, Fugro serves clients around the globe, mostly in the energy, infrastructure and water industries, both offshore and onshore. In 2024, revenue amounted to EUR 2.3 billion. Fugro is listed on Euronext Amsterdam.
This press release contains information that qualifies, or may qualify as inside information within the meaning of Article 7(1) of the EU Market Abuse Regulation.
This announcement may contain forward-looking statements. Forward-looking statements are statements that are not historical facts, including (but not limited to) statements expressing or implying Fugro's beliefs, expectations, intentions, forecasts, estimates or predictions (and the assumptions underlying them). Forward-looking statements necessarily involve risks and uncertainties. The actual future results and situations may therefore differ materially from those expressed or implied in any forward-looking statements. Such differences may be caused by various factors (including, but not limited to, market developments, currency risks and unexpected operational setbacks). Any forward-looking statements contained in this announcement are based on information currently available to Fugro's management. Fugro assumes no obligation to in each case make a public announcement if there are changes in that information or if there are otherwise changes or developments in respect of the forward-looking statements in this announcement.
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Press Release – Trading update Q1 2025
TUGRO
Appendix
Overview by business
| Key figures (x EUR million) | Q1 2025 | Q1 2024 | |
|---|---|---|---|
| Marine | Revenue | 343.4 | 378.2 |
| comparable growth^{1} | (9.7%) | 13.8% | |
| Backlog next 12 months | 1,154.8 | 1,217.9 | |
| comparable growth^{1} | (4.5%) | 10.4% | |
| Land | Revenue | 106.6 | 125.0 |
| comparable growth^{1} | (15.6%) | (3.5%) | |
| Backlog next 12 months | 327.4 | 326.3 | |
| comparable growth^{1} | 1.0% | 8.0% |
Overview by region
| Key figures (x EUR million) | Q1 2025 | Q1 2024 | |
|---|---|---|---|
| Europe-Africa | Revenue | 192.6 | 218.7 |
| comparable growth^{1} | (12.6%) | 13.7% | |
| Backlog next 12 months | 672.6 | 689.6 | |
| comparable growth^{1} | (3.6%) | 18.3% | |
| Americas | Revenue | 107.6 | 126.0 |
| comparable growth^{1} | (14.5%) | 1.7% | |
| Backlog next 12 months | 294.7 | 359.7 | |
| comparable growth^{1} | (14.1%) | (4.4%) | |
| Asia-Pacific | Revenue | 95.0 | 100.5 |
| comparable growth^{1} | (6.1%) | 9.1% | |
| Backlog next 12 months | 282.0 | 321.1 | |
| comparable growth^{1} | (11.4%) | 23.6% | |
| Middle-East & India | Revenue | 54.9 | 58.0 |
| comparable growth^{1} | (7.3%) | 8.7% | |
| Backlog next 12 months | 232.8 | 173.8 | |
| comparable growth^{1} | 34.6% | (7.2%) |
- Corrected for currency effect