Fugro (FUR) Q3 2024 TU earnings summary

Executive summary

• Q3 2024 saw EBIT margin rise to 16.7%, robust free cash flow up 53.3%, and a 16.8% increase in 12-month backlog, despite flat revenue year-over-year.

• Europe-Africa and Asia Pacific delivered strong revenue and margin growth, offsetting declines in Americas and Middle East due to market-driven challenges and regional conflicts.

• Diversified portfolio, operational excellence, and investments in people and technology supported resilience and solid bottom-line results.

• Continued progress on strategic initiatives, including the Towards Full Potential strategy.

• 12-month backlog increased by 16.8%, reflecting solid order momentum.

Financial highlights

• Q3 2024 revenue was €597 million, down 0.7% year-over-year on a comparable basis.

• Adjusted EBIT margin improved to 16.7% (from 16.0% in Q3 2023); EBIT rose to €99.3 million.

• EBITDA margin increased to 23.5%; free cash flow surged by 53.3% to €103 million, driven by higher EBITDA and lower working capital.

• Working capital declined by €30 million, now at 14.4% of revenue.

• CapEx YTD at €51.7 million (vs. €31.7 million prior year); full-year CapEx guidance maintained at €250 million.

Outlook and guidance

• Full-year 2024 guidance: mid-single digit revenue growth, EBIT margin around 13%, and capex of approximately €250 million.

• Growth to continue in Europe and Asia-Pacific, with Americas resuming growth and Middle East backlog indicating future recovery.

• Several key geotechnical vessels to undergo dry dock in Q4 and Q1, impacting profitability.

• Continued investments in assets, technology, and people.