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Fugro sees profits plunge as weak offshore wind market weighs

The Dutch ground investigation company’s revenue edged up, but margins came under heavy pressure.

Fugro saw profitability fall sharply in the third quarter. The company pointed to lower prices in marine ground investigation, a weaker offshore wind market and additional costs resulting from the war in the Middle East.

Fugro generated revenue of €525.2 million in the third quarter, 2.2 per cent more than in the same period last year. Adjusted ebitda, however, fell from €108.6 million to €75.9 million. The ebitda margin therefore came to 14.4 per cent, compared with 21.5 per cent a year earlier.

Adjusted operating profit also declined. Ebit came to €27.2 million, compared with €64.9 million in the third quarter of 2025. Fugro published the figures in a trading update on Friday morning. The figures have not yet been audited by an external accountant.

According to the company, demand from the oil and gas and infrastructure sectors remains reasonably stable. Fugro has shifted capacity to those markets as clients in offshore wind have become more cautious. Early ground investigation for wind farms has been particularly affected: the order book for the next twelve months fell by 8.5 per cent, with the offshore wind segment shrinking by 36 per cent.

Fugro also cites lower prices in marine ground investigation as a key cause of the pressure on margins. The market is experiencing overcapacity, meaning companies are competing for fewer contracts. There were also one-off costs for two inspection and monitoring campaigns in Australia, as well as additional costs that the company links to the war in the Middle East.

The company is maintaining its outlook for 2026 as a whole, but warns that uncertainty, customer caution and overcapacity will continue to weigh on the margin in the fourth quarter. Fugro is limiting investment this year to about €150 million and is carrying out a cost programme intended to deliver annual savings of €50 million.

In the longer term, Fugro expects the market for ground investigation at offshore wind projects to recover from the second half of 2027. The company has extended its existing credit facilities until December 2031 and has also secured a new €150 million credit facility from the European Investment Bank. At the same time, the company warns of continued pressure on the margin in the fourth quarter.

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