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Fugro N.V. — Earnings Release 2025
Apr 15, 2025
3845_rns_2025-04-15_c887b117-4956-4127-a8db-efa92b3154b6.pdf
Earnings Release
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FUGRO
Press release
Leidschendam, 15 April 2025
Fugro provides financial update for the first quarter of 2025
Rapidly increased geopolitical and economic uncertainties are influencing client investment behaviour worldwide. This adds to the challenges posed by adverse developments in the US market, in particular in offshore wind. As a result, Fugro expects to report lower revenue and EBIT compared to a strong first quarter of 2024. By implementing measures to protect our profitability, we remain confident that we will deliver within our mid-term EBIT margin target range of 11-15% for the full-year 2025.
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.
Revenue for the quarter is expected to decline by approximately 11% (Q1 2024: EUR 503 million), and EBIT is expected to be slightly positive (Q1 2024: EUR 44 million). Free cash flow is anticipated to be approximately negative EUR 85 million (Q1 2024: negative EUR 58 million), including scheduled capex of around EUR 100 million, largely related to the final phase of our geotechnical fleet expansion programme and vessel conversions. Working capital performance is solid at around 8% of 12-months revenue.
Actions to drive efficiency and profitability
We are responding swiftly to current challenges. In the Americas, we have made steady progress with the realignment of our operations. We have also initiated targeted cost reductions in the other regions by reallocating assets towards other market opportunities, reducing personnel and leased assets, and implementing strict cost controls.
Mark Heine, CEO: "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. Our immediate priority is to implement cost saving measures that safeguard profitability and cash flow, without losing momentum on our long-term strategy Towards Full Potential."
Outlook
The 12-month backlog is expected to decline modestly by 3 to 4% 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 2025. We will continuously monitor market developments and reassess the full-year revenue outlook when greater clarity materialises.
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FUGRO
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.
On 24 April 2025, Fugro publishes its Q1 2025 trading update.
Analyst and media calls
At 8.30 CET today, Fugro will host an analyst call to discuss today's update. The dial-in numbers are +31 (0) 20 708 5073 or +44 (0) 33 0551 0200. At 9.30 CET today, Fugro will host a media call; the dial-in numbers are +31 (0) 20 708 5073 or +44 (0) 33 0551 0200. Please quote Amsterdam2025 when prompted by the operator.
For more information
| Media | Investors |
|---|---|
| Serge van de Ven | |
| [email protected] | |
| +31 70 31 11129 | |
| +31 6 3094 2428 | 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.
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 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, developments in the oil & gas industry and related markets, 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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