Fugro (FUR) Q2 2024 earnings summary

Executive summary

• Revenue grew 7.1% year-over-year in H1 2024, with renewables accounting for 40% of revenue and surpassing oil and gas for the first time.

• EBIT margin rose to 13.2% from 8.9% year-over-year, with net result from continuing operations at €112.5 million and EPS at €1.00.

• Backlog increased 16.6% to €1,522 million, supporting future growth.

• Over 1,000 new hires in H1 2024, with voluntary staff turnover dropping below 9%.

• Strategic focus on diversifying revenue, expanding into water, climate, and carbon capture segments.

Financial highlights

• H1 2024 revenue: €1,091.1 million, EBITDA margin 20.5%, EBIT margin 13.2%, and EPS €1.00.

• Adjusted EBITDA: €224.1 million; Adjusted EBIT: €143.6 million.

• Operating cash flow increased by €56 million to €187 million, but free cash flow turned negative due to higher working capital and CapEx.

• Free cash flow from operations rose 43% to €187 million, but working capital increased to €177 million.

• ROCE improved to 18.8% (H1 2023: 12.2%).

Outlook and guidance

• Full-year 2024 growth expected, with EBIT margin guidance around 13%.

• CapEx guidance reaffirmed at €200–250 million per annum, focused on maintenance, expansion, and technology.

• Backlog growth and strong demand in renewables and infrastructure support a positive outlook.