Fugro reported a 2.1% revenue decline in the first quarter, reflecting a seasonally weaker period and lower offshore wind activity. Growth in other segments helped to offset the softer performance in wind.
The company pointed to continued geopolitical and macroeconomic uncertainty, which is contributing to slower contract awards and a stronger focus among clients on cost control and cash discipline.
Fugro completed a cost reduction programme of €120 million during the period and indicated that further measures may be introduced if required. This contributed to an EBITDA margin of 10.4%, compared with 9.8% in the same period last year, while the EBIT margin remained in line with the previous year.
Operating cash flow before changes in working capital was €13 million, down from €21 million a year earlier. Free cash flow improved to minus €57.9 million, supported by lower capital expenditure of €31 million compared with €101 million in the prior year period. Working capital increased, reflecting higher activity levels towards the end of the quarter and differences in payables compared with last year.
The 12-month backlog declined slightly by 3.5%, although tendering activity remains solid across most markets. However, conversion of awards continues to take longer than usual.
For 2026, Fugro expects margin improvement driven by cost savings and operational efficiencies. Capital expenditure is forecast at €150–165 million, significantly below the €248 million recorded in 2025, alongside a reduction in working capital to support free cash flow.
