US Policy Hits Fugro’s Q1 2025 Profits

Wedoany.com Report-Apr. 17, Challenges posed by "adverse developments" in the US market, in particular in offshore wind, has lead Fugro to report lower revenue and EBIT in Q1 2025, compared to a strong first quarter of 2024.

Revenue for the quarter is expected to decline by approximately 11% (Q1 2024: €503m), and EBIT is expected to be slightly positive (Q1 2024: €44m).

Fugro said that the shift in the US political landscape has led to a pause in new offshore wind projects.

Furthermore, the highly volatile market environment is now impacting Fugro’s business in other regions as well.

The directors said: "We see some scope reductions of projects and award decisions taking longer, exacerbating the typically slow start to the year."

However, they added that, by implementing measures to protect its profitability, they remain confident that Fugro will deliver within its mid-term EBIT margin target range of 11-15% for the full-year 2025.

Furthermore, in the Americas it has made steady progress with the realignment of its operations.

It has also initiated targeted cost reductions in the other regions by reallocating assets towards other market opportunities, reducing personnel and leased assets, and implementing strict cost controls.

Fugro chief executive Mark Heine said: "In recent years, we have transformed into a resilient and well-diversified business with a strong balance sheet.

"This enables us to act quickly and effectively in these times of uncertainty, supporting the generation of solid results through the cycle.

"Our immediate priority is to implement cost saving measures that safeguard profitability and cash flow, without losing momentum on our long-term strategy Towards Full Potential."