Fugro Key take-aways FY24 analyst call

This morning Fugro published good 4Q numbers. Adjusted EBIT landed at €315m well above our (€296m) and CSS (€297m) estimates. Resulting margin is at 13.8% (vs. 13% E). Full year revenues were mainly derived from Oil&Gas (37%, +1% y/y) and Renewables (38%, +10% y/y). Margin strength is remarkable especially in the US where FY EBIT margins were flat at 10% even when revenues fell 10%. Company guides for EBIT in the 11-15% mid term range with full year revenue growth being back-end loaded given specific 1H25 US market dynamcis. As management is able to flex the cost base and profitability of the land division is improving, the impact of the mismatch between loss of US OFW orders and renewed US Oil&Gas order intake should be mitigated in 2025. Looking at our forecasts for 2025, lower revenue growth should be compensated by higher profitability. BUY.
Management hosted a convincing analyst meeting. As we could technically not participate in the Q&A we also had a brief call with the CFO after the meeting. Key take-aways are listed below.