Fugro: H1 2025 Impacted by Weak Markets, Recovery Expected in H2
© Fugro
Fugro’s results in the first half year were significantly impacted by geopolitical and economic uncertainties. For the second half of 2025, the company expects a strong recovery resulting in a full-year EBIT margin of 8-11%, underpinned by revenue growth in H2 of around 20% versus H1.
- The macro(economic) uncertainties experienced in Q1 persisted, contributing to industry-wide project delays and scope reductions, especially in the offshore wind market. This led to lower revenue and EBIT.
- Free cash flow was affected by reduced EBITDA and a front-loaded capital expenditure profile.
- Our balance sheet remains robust.
- We are progressing well with implementation comprehensive cost reduction program, targeting a reduction of 750 FTEs and annualized savings of USD$92-115 million (EUR 80-100 million).
- Our order backlog is solid at USD$1.7 billion (EUR 1.5 billion). The reduction in renewables has been offset by growth in other markets, underpinned by several recent major awards
- The recent upturn in trading conditions is the result of improved vessel utilization, the recent start of new and previously postponed projects, and cost reductions
- Outlook 2025: we expect a strong recovery in H2 resulting in a full-year EBIT margin of 8-11%, underpinned by revenue growth of around 20% compared to H1 2025.
February 2025
