Dutch geo-data specialist Fugro said on Thursday that revenue and earnings for the first quarter of 2025 are expected to be lower compared to a strong Q1 in 2024, citing challenges in the offshore wind sector, particularly in the United States.
Revenue is projected to decline by around 11% from €503 million a year earlier, while earnings before interest and taxes (EBIT) are expected to remain slightly positive, down from €44 million in Q1 2024.
The company attributed the downturn primarily to a pause in new offshore wind projects in the US following shifts in the political landscape. Fugro also noted that uncertainty in the broader market environment is beginning to affect its operations in other regions.
“We see some scope reductions of projects and award decisions taking longer, exacerbating the typically slow start to the year,” the company’s directors said in a statement.
Despite the weak quarterly performance, Fugro remains confident in meeting its full-year EBIT margin target range of 11% to 15% by implementing a series of cost control measures. These include asset reallocation, workforce reductions, decreased leasing activity, and tighter cost management across its global operations.
In the Americas, the company reported steady progress in realigning its business, aimed at adapting to the shifting market dynamics.
“In recent years, we have transformed into a resilient and well-diversified business with a strong balance sheet,” said Chief Executive Mark Heine. “This enables us to act quickly and effectively in these times of uncertainty, supporting the generation of solid results through the cycle.”
Heine added that maintaining profitability and cash flow will be the company’s immediate focus. “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,” he said.
Fugro, which provides data and analysis for infrastructure, energy and environmental projects, said it remains committed to its long-term growth strategy despite the near-term market headwinds.
