Investing.com -- Dutch geodata company Fugro NV DRC (AS:FUGR) reported a sharp decline in third-quarter profitability on Friday as lower pricing in offshore wind surveying, costs linked to the Middle East conflict and additional vessel charter expenses offset modest revenue growth.
Revenue increased 2.2% on a comparable basis to €525.2 million in the July-September quarter, supported by steady demand from oil and gas and infrastructure projects. However, EBITDA fell 30.1% year on year to €75.9 million, while its margin narrowed to 14.4% from 21.5%.
Chief Executive Mark Heine said third-quarter performance reflected the challenging conditions flagged at the company's first-half results, with savings from ongoing cost reductions offset by lower pricing caused by industry overcapacity in marine site characterisation.
Profitability was further affected by additional expenses related to the Middle East war and one-off charter costs incurred to complete two offshore inspection and monitoring campaigns in Australia.
Fugro's Marine business recorded a 2.1% decline in comparable revenue, as weaker offshore wind activity in Europe-Africa outweighed increased oil and gas work. Fleet utilisation fell to 64% from 76% a year earlier. In contrast, Land revenue rose 19.5%, supported by nearshore activity in Europe and infrastructure projects in the Americas.
Heine said the company's priority was to "improve profitability and strengthen cash flow", adding that its €50 million annualised cost-reduction programme remained on track.
Fugro maintained its full-year 2026 outlook, warning that market uncertainty, customer caution and industry overcapacity would weigh on a seasonally weaker fourth quarter. Capital expenditure is expected to be limited to around €150 million to support free cash flow.
The company continues to expect offshore wind site-characterisation markets to begin recovering from the second half of 2027.
Original Article
Fugro Q3 EBITDA slumps 30% as offshore wind weakness and higher costs hit margins
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