Q1 2024 Trading update

Published

25 Apr 2024 07:00 CET

Location

Leidschendam, the Netherlands

Strong start of the year 2024 for Fugro. Continued revenue growth and margin improvement.

Ongoing significant growth in offshore wind projects, resulting in 9.0% overall revenue growth
Further improvement in profitability, resulting in 16.5% EBITDA margin and 8.8% EBIT margin
Operating cash flow increases by EUR 24.0 million to EUR 66.2 million; offset by higher working capital compared to exceptionally low level at year-end 2023
12-month backlog continues to be robust with 9.9% increase
Outlook full-year 2024 reiterated: continued revenue growth, EBIT margin within mid-term target range of 11-15%.

Key figures (x EUR million) unaudited	Q1 2024	Q1 2023
Revenue	503.2	465.8
- comparable growth*	9.0%	27.5%
EBITDA**	82.8	58.7
EBIT**	44.2	25.3
EBIT margin**	8.8%	5.4%
Cash flow from operating activities after investing (free cash flow)***	(58.0)	15.6
Backlog next 12 months	1,544.2	1,401.5
- comparable growth*	9.9%	22.4%

_{* Corrected for currency effect}_{** Adjusted for specific items}_{*** Including discontinued operations}
_{Refer for definitions of non-IFRS measures to the glossary in the additional information to the 2023 annual report.}

Mark Heine, CEO: “The year 2024 is off to a good start. We are capturing a significant part of site characterisations in the offshore wind market, which continues to be buoyant as a result of the energy transition in numerous countries. Many governments are demonstrating their commitment to carbon reduction roadmaps, for example by responding swiftly to recent delays in several offshore wind projects by increasing prices for the energy that the owners of these developments generate. At the same time, our revenue was supported by the infrastructure and water markets.

In this typically low winter season, we reported a strongly improved EBIT margin of 8.8% driven by an overall robust performance in Marine, fueled by excellent operational execution, operating leverage and improved terms & conditions; despite still increasing cost levels.

The implementation of our new strategy, Towards Full Potential, is getting underway. Ongoing investment in our people, technology and execution excellence is key. Despite tight labour markets, we are successful in attracting the people we need to support our clients. In the first quarter, we hired over 500 people, and voluntary staff turnover declined to 8%. Also, the conversion of Fugro Resilience and Fugro Resolve to geotechnical vessels is nearing completion, further boosting our earnings capacity.

While carefully navigating macro-economic and geopolitical uncertainties, we are well-positioned to benefit from the energy transition, massive infrastructure investments and urgently needed climate change adaptation.”

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Q1 2024 Trading update