Fugro (FUR) Q2 2025 earnings summary

Executive summary

• H1 2025 was marked by significant headwinds, especially in offshore wind, resulting in a 15.6% revenue decline to EUR 905 million and a sharp EBIT margin drop to 2.3%, with over EUR 150 million of the revenue drop from renewables.

• Offshore wind markets in the U.S. and Europe experienced a collapse or recalibration due to high interest rates, supply chain issues, and regulatory uncertainty.

• A comprehensive cost reduction programme targeting 750 FTEs and EUR 80-100 million in annualized savings is underway.

• Momentum is building in Q3 as postponed projects commence, positioning for a strong H2 2025 recovery, with full-year EBIT margin guidance of 8-11% and revenue growth of around 20% in H2.

• The mid- and long-term market outlook remains robust, with strategy unchanged.

Financial highlights

• Revenue declined by 15.6% year-over-year to EUR 904.7 million in H1 2025, with renewables accounting for the majority of the drop.

• EBIT dropped to EUR 13.8 million (2.3% margin), and EBITDA to EUR 108 million (11.9% margin), both significantly lower year-over-year.

• Free cash flow was negative EUR 187 million, mainly from reduced EBITDA and front-loaded CapEx.

• Net debt increased to EUR 437 million, with net leverage at 1.2x, still below the 1.5x target.

• Net result was a loss of EUR 18.3 million, with EPS at -0.16 versus 1.00 in H1 2024.

Outlook and guidance

• Full-year EBIT margin guidance maintained at 8%-11%, with a strong H2 expected due to new project awards, increased vessel utilization, and cost savings.

• Full-year capex guidance is approximately EUR 250 million, with focus shifting to uncrewed and remote operational capabilities.

• Mid-term 2027 revenue guidance of EUR 3–3.5 billion will be realized later than planned, but EBIT margin, free cash flow, and ROCE targets are confirmed.

• Positive free cash flow expected for the full year.