Fugro (FUR) Q4 2025 earnings summary

Executive summary

• 2025 performance was significantly impacted by a sharp decline in offshore wind markets and a slowdown in oil & gas project start-ups, resulting in a EUR 427 million (16% currency comparable) revenue drop.

• A cost reduction program delivered EUR 120 million in annualized savings and reduced the workforce by 1,050 FTEs.

• Backlog was recalibrated and replenished with oil & gas and infrastructure projects, partially offsetting the decline in renewables.

• Early signs of recovery are emerging in offshore wind, but a full rebound is expected only from 2027 onwards.

Financial highlights

• 2025 revenue was EUR 1,848 million, down EUR 427 million (16.1%) year-over-year, with EUR 380 million of the decline from offshore wind.

• Adjusted EBITDA margin was 14.5%, down from 21.3% in 2024; adjusted EBIT margin was 4.9%.

• Free cash flow was negative EUR 137 million, impacted by EUR 248 million in capex and higher working capital.

• Net debt increased to EUR 382 million, with leverage at 1.4x; no significant maturities until 2029 except a EUR 40 million term loan.

• Dividend proposed at EUR 0.15 per share (28% payout ratio, excluding impairments).

Outlook and guidance

• Focus for 2026 is on margin improvement, cash flow generation, and continued cost discipline.

• Offshore wind market shows early recovery signs, but meaningful revenue impact is expected only from 2027.

• Capex will be reduced to EUR 150–165 million in 2026, down from EUR 248 million in 2025.

• Oil & gas and infrastructure backlogs are growing, with cautious optimism for nuclear, critical minerals, and security markets.

• No specific revenue or margin guidance provided; midterm targets (EBIT margin 8–12%, ROCE 10–15%) remain aspirational.