Fugro Earnings miss and sentiment triggered unwarranted sell off

After spoiling the markets with 8 quarters of appealing topline growth, Fugro disappointed with stalling revenues over 3Q24. The silver lining was that Fugro managed to post margins exceeding expectations and that the backlog discounted 16.8% growth. In our view, the conservative guidance and consecutive earnings beats over the past quarters led to some ambitious estimates in the market ultimately resulting in a (sizeable) earnings miss. Combined with the uncertainty over the US elections and impact on its energy policy this triggered an unwarranted sell off. We believe the 3Q performance was a one-off and renewed growth will be posted over 4Q and beyond. While we recognise negative sentiment surrounding the US policy on offshore wind could persist in the months ahead we believe this is more than discounted in the current valuation. Buy reiterated.