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, supported by robust results in Marine and Land segments and double-digit EBIT margins in most regions.

• Revenue grew 3.6% year-over-year to EUR 2,275 million, with Europe-Africa and Asia Pacific driving growth, while Americas and Middle East & India faced challenges.

• Operating cash flow increased by 20% to EUR 406 million, supporting a dividend increase to EUR 0.75 per share and a 30% payout ratio.

• Delivered on midterm targets for EBIT margin, free cash flow, and ROCE, with ROCE at 18.1% and strategic transformation progressing.

• Strategic investments in fleet expansion, low-carbon solutions, and the acquisition of EOMAP enhanced capabilities and market positioning.

Financial highlights

• EBIT margin reached 13.8%, EBITDA margin 21.3%, and ROCE 18.1% for 2024.

• Revenue increased to EUR 2,275 million; operating cash flow before working capital up 20% to EUR 406 million.

• Net result from continuing operations up to EUR 274 million (EPS EUR 2.44); highest net result in over a decade.

• Free cash flow at 7.1% of revenue; working capital at 7.6% of revenue.

• CapEx for 2024 was EUR 242 million, with maintenance capex at EUR 88.6 million.

Outlook and guidance

• 2025 guidance: EBIT margin 11%-15%, free cash flow 6%-9%, ROCE above 15%.

• Revenue growth expected for 2025, though limited by U.S. market dynamics in the first half.

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

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