Fugro reports annual loss and cuts dividend by 80 percent
Fugro reported a 21 million euro annual loss as offshore wind projects slowed. The firm is cutting its dividend and spending to manage market challenges.
The Dutch geological data specialist Fugro N.V. has reported an annual loss of 21 million euros ($25 million), citing significant headwinds within the offshore wind industry. Based in the Netherlands, the firm saw its consolidated revenue fall to 1.85 billion euros, a decrease of 427 million euros from the previous year. The company attributed 380 million euros of this decline specifically to the cooling renewables market.
The downturn was exacerbated by policy shifts in the United States, where the current administration's stance on renewable energy has led to a halt in new project expectations. As a result, Fugro's revenue composition has pivoted back toward fossil fuels. Oil and gas now account for 45% of total revenue, an increase from 37% in 2024, while the contribution from renewables has retreated to 26% from a previous high of 38%.
Following the report, the company's shares dropped by roughly 10% in Amsterdam trading. In a move to preserve capital, Fugro reduced its annual dividend by 80%, setting it at 0.15 euros. CEO Mark Heine commented on the company's cautious stance following a period of volatility.
We're very careful after a year… where we have missed the guidance a number of times.
The company has undergone significant restructuring, including a cost-reduction program that resulted in the loss of over 1,000 jobs. These measures are intended to generate savings of 80 million to 100 million euros. Additionally, Fugro announced that its Chief Financial Officer will depart the company in April. For the 2026 fiscal year, management expressed cautious optimism and plans to lower capital expenditure to between 150 million and 165 million euros to support free cash flow.
