nr36 schreef op 22 september 2025 07:06:
Fugro today announces an update to its financial guidance for 2025, following significant changes in market conditions in recent weeks. While we still expect the second half of 2025 to show a notable improvement compared to the first half, the previously anticipated 20% revenue growth is no longer realistic. A wide range of projects has been affected – with most experiencing postponements into 2026 and some being descoped – resulting in an estimated revenue impact of around EUR 100 million.
Fugro will provide a further update at its scheduled Q3 trading update on 31 October 2025.
Recent developments in offshore wind have further softened market sentiment, making the business environment even more challenging. The most significant impacts, however, are seen in the oil and gas market. While our activity levels are expected to increase, the timing of projects is currently affected by intensified disciplined cash and cost management in response to lower commodity prices.
The impact is visible in all regions, particularly in early-stage site characterisation work –even on ongoing work on recently awarded key projects– and most notably in the Europe-Africa region where Fugro operates a large part of its fleet. Given these uncertainties, Fugro has decided to withdraw its financial guidance for the full year 2025.
Cost and capex reduction
Management is fully committed to safeguarding profitability and cash flow by further reducing costs and strong capital discipline. In addition to the ongoing implementation of the current cost reduction programme with annualised cost savings of EUR 80–100 million, we are:
Implementing an additional reduction of 300 FTE, on top of the earlier communicated 750 FTE.
Optimising the fleet and its operations, including warm stacking1 several geophysical vessels during the upcoming winter season.
These additional measures will start to take effect in late 2025, with their full impact expected to be realised in 2026. In addition, to protect free cash flow, the company will significantly reduce capital expenditure for 2026. For the remainder of 2025, the potential for reductions is limited, due to already committed investments.
Analyst call
At 8.30 CET today, Fugro will host an analyst call to discuss today’s update. The dial-in number is +31 (0) 20 708 5073 or +44 (0) 33 0551 0200.