Fugro (FUR) Q1 2026 TU earnings summary

Executive summary

• Q1 2026 revenue declined by 2.1% year-over-year, mainly due to lower offshore wind activity, partially offset by growth in oil & gas and infrastructure markets; seasonally low activity and geopolitical uncertainty contributed to slower award decisions and increased client focus on cost and cash management.

• EBITDA margin improved to 10.4%, supported by a completed €120 million cost reduction program and ongoing cost discipline.

• Free cash flow improved due to significantly lower capital expenditure, though working capital increased, driven by large ongoing contracts and high billing activity at quarter-end.

• Backlog for the next 12 months stands at €1.385 billion, down 3.5% year-over-year, with strong tendering activity but slower conversion into awards.

• Direct impact from Middle East conflict has been limited to operations in UAE and Qatar, with some knock-on effects in other regions.

Financial highlights

• Q1 2026 revenue was €418 million, down 2.1% year-over-year; marine revenues fell 2.4% with vessel utilization at 60%.

• EBITDA margin rose to 10.4% from 9.8% in Q1 2025; EBIT margin was -0.4%, compared to 0.2% in Q1 2025.

• Operating cash flow before working capital changes was €13 million; working capital increased by €55 million.

• CapEx dropped sharply to €31 million from €101 million in Q1 last year.

• Net leverage at quarter-end was 1.8x, with net debt at €182 million; targeted below 1.5x by year-end.

Outlook and guidance

• Margin improvements anticipated for 2026 as cost savings and efficiencies are fully implemented; full-year outlook maintained.

• CapEx for 2026 guided at €150–165 million, well below 2025 levels, supporting free cash flow.

• Medium- to long-term outlook remains sound across core markets, with emerging opportunities in nuclear, critical minerals, and undersea infrastructure security.

• Offshore wind markets in Europe show early signs of recovery, but a full rebound will take time.