Fugro (FUR) AGM 2025 Presentation summary

Strategic direction and business overview

• Maintains leadership in Geo-data, with €2,275 million revenue and €484 million EBITDA in 2024, operating in 52 countries with over 11,000 employees.

• Focuses on energy transition, infrastructure, and climate adaptation, with 38% of revenue from renewables and 37% from oil & gas.

• Implements the 'Towards Full Potential' strategy, emphasizing business growth, transformation, and expansion into developing segments like coastal resilience and carbon capture.

• Shifts towards asset-light and low-carbon solutions, increasing remote and digital operations, and expanding uncrewed surface vessel (USV) projects.

• Builds recurring revenue through Geo-data as a service, leveraging partnerships and subscription-based platforms.

Financial performance and capital allocation

• Achieved 3.6% revenue growth in 2024, with EBIT margin rising to 13.8% and operating cash flow up 19.5%.

• Net result reached €274 million, the highest in over a decade, with earnings per share of €2.44.

• Free cash flow at 7.1% of revenue, supported by improved billing and collection.

• Maintains a strong balance sheet with net leverage at 0.2x and new financing at improved terms.

• Proposes a €0.75 per share dividend (30% payout) and continues share buybacks, aligning with a 25-45% payout policy.

Market environment and outlook

• Faces short-term headwinds, especially in offshore wind due to US policy shifts, supply chain pressures, and delayed project awards.

• Despite a modest 3.3% decline in backlog and an 11.1% drop in Q1 2025 revenue, remains confident in achieving mid-term EBIT margin targets (11-15%).

• Sees strong long-term fundamentals in renewables, oil & gas, infrastructure, and emerging markets like critical minerals and underwater infrastructure.

• Implements cost-saving measures, including reducing charters, hiring freezes, and targeted workforce reductions.

• Continues to monitor market developments and adjust strategy as needed.