Outlook 2026

Uncertainty remains elevated due to the ongoing conflict in the Middle East and continued weakness in offshore wind markets. While there are auction rounds ongoing in several key countries in Europe, the start-up of new offshore wind projects remains slow and a meaningful recovery in site characterisation activity is expected to take time.

 As a result, we expect industry overcapacity to persist, leading to pricing pressure and shorter backlog visibility. Consequently, the previously expected margin improvement for the full year has become unlikely. To support free cash flow, capex for the year will be further reduced to the low end of the previously guided EUR 150 -165 million, along with lower working capital.

Fugro’s capital allocation framework supports investing in sustainable growth, through capital expenditure and a selective M&A policy, while maintaining a strong balance sheet (through a net leverage ratio of below 1.5x), and providing attractive returns to shareholders. This includes a dividend pay-out policy of 25-45% of net result. In addition, going forward, we will conduct an annual balance sheet review to evaluate whether excess cash is available for share buybacks.

The medium- to long-term outlook across Fugro’s core markets remains sound. In addition, emerging markets including critical minerals and security solutions for safeguarding vital undersea infrastructure also present promising mid-term opportunities.