Fugro (FUR) Q3 2024 TU earnings summary

Executive summary

• Q3 2024 saw EBIT margin rise to 16.7%, robust free cash flow, and 16.8% growth in 12-month backlog, despite flat or slightly lower 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 challenges and regional conflicts.

• Diversified portfolio, operational excellence, and regional presence supported resilience and solid bottom-line results.

• Continued progress on strategic initiatives, including investments in people, technology, and operational excellence.

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

Financial highlights

• Q3 2024 revenue was €596.5M–€597M, down 0.7% year-over-year on a comparable basis.

• Adjusted EBIT margin improved to 16.7%, with EBIT at €99M–€99.3M; EBITDA margin rose to 23.5%.

• Free cash flow surged by 53.3% to €102.6M–€103M, driven by higher EBITDA and lower working capital.

• Working capital declined to 14.4% of revenue, within the targeted 10–15% range.

• Capital expenditure reached €51.7M in Q3, with full-year CapEx guidance at €250M.

Outlook and guidance

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

• Some impact from vessel dry docks expected in Q4 and Q1.