Fugro (FUR) Q1 2025 TU earnings summary

Executive summary

• Revenue declined 11.1% year-over-year to EUR 450 million in Q1 2025 amid economic and geopolitical uncertainties, with clients delaying project commitments and a pause in US offshore wind projects.

• EBIT margin dropped to 0.2% from 8.8% in Q1 2024, reflecting challenging market conditions, project delays, and lower marine site characterization revenue.

• Cost-saving and efficiency measures are being implemented, including workforce reductions, asset reallocation, hiring freezes for non-project staff, and reducing short-term charters.

• Market volatility, especially in offshore wind, is impacting project scope and award timing across regions.

• The 12-month backlog declined by 3.3% to EUR 1,482 million, reflecting current market dynamics and client hesitancy.

Financial highlights

• Q1 2025 revenue was EUR 450 million, down from EUR 503.2 million in Q1 2024.

• EBIT margin was 0.2% (Q1 2024: 8.8%), and EBITDA was EUR 43.9 million (Q1 2024: EUR 82.8 million).

• Operating cash flow before working capital changes was EUR 21.2 million, down from EUR 66 million in Q1 2024.

• Free cash flow was negative EUR 84.4 million, impacted by front-loaded CapEx of EUR 100.9 million for fleet expansion and conversions.

• Net leverage at the end of Q1 was 0.5x, with net debt at EUR 239.5 million.

Outlook and guidance

• Full-year 2025 EBIT margin is expected within the 11-15% target range, with revenue outlook to be reassessed as market clarity improves.

• Ongoing cost-saving measures include hiring freezes and targeted workforce reductions.

• No significant contribution from U.S. renewables expected in 2025; some recovery anticipated in oil & gas and other sectors as policy clarity improves.

• Growth opportunities identified in critical minerals and underwater infrastructure surveillance.

• Multiple scenarios are being prepared for, with readiness to take further action if required.