Fugro N.V.: 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.

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 [phone] or [phone]. At 9.30 CET today, Fugro will host a media call; the dial-in numbers are [phone] or [phone]. Please quote Amsterdam2025 when prompted by the operator.