Fugro (FUR) Investor Presentation summary

Business overview and strategy

• Leading global Geo-data specialist with €2,275 mn revenue and €484 mn EBITDA in FY 2024, operating in 52 countries with 11,219 employees and a diversified client base across renewables, oil & gas, infrastructure, and water sectors.

• Solutions support energy transition, infrastructure development, and climate change adaptation, with a focus on reducing geo-risk throughout asset life cycles.

• Strategic priorities include growing and transforming the core business, expanding into developing segments like coastal resilience and carbon capture, and building recurring revenue through Geo-data as a service.

• Emphasis on asset-light and low-carbon solutions, digitalisation, and recurring revenue streams to drive future growth.

• Strong ESG focus, targeting net zero by 2035, diversity, and positive impact across the value chain, with recognition from major ESG rating agencies.

Financial performance and targets

• FY 2024 saw revenue growth of 3.6% to €2,275 mn, EBIT margin improvement to 13.8%, and operating cash flow up 19.5% to €406 mn.

• Net result reached €274 mn, the highest in over a decade, with earnings per share of €2.44 and a dividend increase to €0.75 per share (30% payout).

• Free cash flow was 7.1% of revenue, supported by enhanced billing and collection, and net leverage reduced to 0.2x.

• Capex focused on sustainable growth, with transformation and expansion investments, and a gradual shift to asset-lighter operations.

• Mid-term (2027) targets reaffirmed: €3–3.5 bn revenue, 11–15% EBIT margin, 6–9% free cash flow, and >15% ROCE.

Q1 2025 update and outlook

• Q1 2025 revenue declined 11.1% to €450 mn, EBIT margin dropped to 0.2%, and free cash flow was negative at -€84 mn amid market volatility.

• Offshore wind market slowdown, especially in the US, led to project pauses and delays, impacting backlog and regional performance.

• Measures implemented to safeguard profitability include reducing short-term charters, workforce adjustments, and a hiring freeze for non-project staff.

• Despite headwinds, fundamentals in core markets remain strong, with continued commitment to the "Towards Full Potential" strategy and growth in emerging areas like critical minerals and underwater infrastructure surveillance.

• Confident in achieving mid-term EBIT margin targets by focusing on operational excellence and market opportunities.