Fugro's first-half 2026 results continued to be affected by subdued offshore wind markets, resulting in overcapacity and pricing pressure, as well as the ongoing conflict in the Middle East. Revenue increased by 4.3% during the first half of 2026, supported by growth in the oil and gas, infrastructure and water markets. The Earnings Before Interest and Taxes (EBIT) margin improved to 4.1%, compared with 2.3% in the first half of 2025, reflecting higher revenue and cost control despite inflationary pressures and operational disruptions in the Middle East.
Free cash flow improved to minus €38 million, from minus €186 million in the first half of 2025, driven by a €87 million reduction in capital expenditure and a €22 million lower cash outflow from changes in working capital. Net loss increased to €62 million, compared with €18 million a year earlier, mainly due to asset impairments and the derecognition of deferred tax assets.
The 12-month backlog declined by 13.9%, including a 47% reduction in the renewables segment.
Fugro expects market uncertainty to continue throughout the remainder of 2026, leading to cautious customer spending, industry overcapacity and continued pricing pressure. Shorter backlog visibility is also expected to affect performance, making the previously anticipated improvement in the full-year margin unlikely.
To strengthen free cash flow, Fugro plans to reduce capital expenditure to around €150 million in 2026 and further lower working capital. Additional cost reduction measures, including fleet rationalisation, are expected to deliver annualised savings of approximately €50 million.
