Fugro cuts profit outlook because of ‘market conditions’

“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,” the company said in a statement before an analyst call.

“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 €100 million. 

“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.”

Fugro says the impact has been visible in all regions, particularly in ‘early stage site characterisation work’, even on ongoing work on recently awarded key projects and most notably in Europe and Africa.

“Given these uncertainties, Fugro has decided to withdraw its financial guidance for the full year 2025.”

The company said it would cut 300 ‘full-time equivalent’ jobs on top of the 750 it had already announced would go. It also said it would ‘significantly reduce capital expenditure for 2026’.

It also said it would be continuing a cost-reduction programme aiming at saving between €80-100 million a year, including ‘warm stacking’ – temporarily putting out of service – several geophysical vessels during the winter.

Warm stacking keeps a minimal crew so that vessels can be reactivated more quickly than if they are ‘cold stacked’, ie shut down completely.