Fugro (FUR) Q2 2026 earnings summary

Executive summary

• Revenue grew 4.3% year-over-year in H1 2026 to EUR 921 million, with strong oil & gas, infrastructure, and water markets offsetting a 24% decline in offshore wind due to market overcapacity and pricing pressure.

• EBIT margin improved to 4.1% from 2.3% in H1 2025, driven by revenue growth and cost control, despite inflation and Middle East disruptions.

• Net result was a loss of EUR 62 million, impacted by EUR 36 million in vessel impairments, EUR 9 million in bad debt provisions, and derecognition of deferred tax assets.

• Backlog for the next 12 months declined 13.9% year-over-year to EUR 1,280 million, mainly due to a 47% drop in offshore wind.

• Cost-saving measures, including vessel rationalisation and charter reductions, are expected to deliver EUR 50 million in annualised savings.

Financial highlights

• H1 2026 revenue: EUR 920.5 million (H1 2025: EUR 904.7 million); Q2 revenue grew nearly 11% year-over-year.

• EBIT margin improved to 7.9% in Q2 (up from 4.3% last year) and 4.1% for H1 2026.

• Free cash flow for H1 was minus EUR 38 million, a significant improvement from minus EUR 186 million last year.

• Net debt at June 2026 was EUR 473 million, up from EUR 383 million at year-end 2025; net leverage at 1.7x.

• Capex for H1 was EUR 81 million, down from EUR 168 million last year.

Outlook and guidance

• Margin improvement for the full year is now considered unlikely due to ongoing market uncertainty, overcapacity, and backlog decline.

• Capex guidance for 2026 reduced to the lower end of EUR 150 million to support free cash flow.

• Offshore wind market recovery is expected in the second half of 2027, with continued weakness and backlog decline in the near term.

• Oil & gas, infrastructure, and water segments are expected to continue growing and offset some wind market weakness.

• Medium- to long-term outlook remains positive for core markets, with opportunities in nuclear, critical minerals, and undersea infrastructure security.