Fugro (FUR) Q4 2024 earnings summary

Executive summary

• Achieved strong financial performance in 2024, with EBIT margin improving to 13.8% and net profit reaching up to EUR 274 million, driven by robust results in Marine and Land segments and double-digit EBIT margins in three out of four regions.

• Revenue grew 3.6% year-over-year to EUR 2,275 million, with strong performance in Europe-Africa and Asia Pacific, offset by challenges in Americas and Middle East & India.

• Operating cash flow increased by 20% year-over-year to EUR 406 million, and dividend per share was raised to EUR 0.75, representing a 30% payout ratio.

• Delivered on midterm targets for EBIT margin, free cash flow, and ROCE, with ROCE at 18.1%, and continued progress on strategic transformation and asset-light, low-carbon solutions.

• Strategic investments included the acquisition of EOMAP, expansion of the geotechnical fleet, and new digital and remote solutions.

Financial highlights

• EBIT margin reached 13.8%, EBITDA margin 21.3%, free cash flow 7.1% of revenue, and ROCE 18.1% for 2024.

• Revenue increased to EUR 2,275 million; net result from continuing operations up to EUR 274 million (EPS EUR 2.44).

• Operating cash flow before working capital changes up 20% to EUR 406 million; working capital at 7.6% of revenue.

• Dividend increased to EUR 0.75 per share; two share buybacks totaling up to EUR 96 million.

• CapEx for 2024 was EUR 242 million, mainly for geotechnical fleet expansion and digital transformation.

Outlook and guidance

• 2025 guidance: EBIT margin 11%-15%, free cash flow 6%-9%, ROCE above 15%, and revenue growth expected, though US market dynamics may limit growth in the first half.

• Capital expenditure planned at EUR 100 million for maintenance and EUR 150 million for expansion and transformation.

• Focus on emerging segments such as coastal resilience, CCUS, critical minerals, and underwater infrastructure.

• Confident in delivering against midterm targets and adapting to market changes.