Fugro N.V. (0LNT) Q1 2026 Earnings Call

Investor webinar replay

Replay transcript excerpt

The Fugro Q1 trading update will begin shortly. Good morning, all. Thank you for dialing in to this webcast audio webcast. Katharine von Wurttinka is my name, Investor Relations. I'm here with Marc Heine, CEO and Barbara Heide, CFO. We have a short presentation to give to you about the Q1 trading update, which will last, I don't know, I think around ten, fifteen minutes in total, Max, and then we'll open the floor for your questions. Marc, please go ahead. Yeah, thank you, Catrin. Good morning, everyone. Q1 twenty twenty six trading updates. As anticipated, Q1 was seasonally low and the market conditions remain challenging. We have a lower offshore wind activity impacting our top line. Revenue declined by 2.1% on a currency comparable basis. We saw growth in other markets, especially oil and gas and infrastructure, largely offset by offshore wind softness. The EBITDA margin slightly improved to 10.4%. EBIT margin was in line with last year, driven by lower revenue, largely offset by cost reductions. The 120,000,000 cost reduction program is completed, but we're also prepared to take further action if required. Free cash flow improved due to significantly lower capital expenditure. However, working capital increased because of large ongoing contracts, high activity of billing, especially at the end of the quarter, and very high payables last year in the first quarter. We remain focused on what we can control, maintaining cost discipline, actively managing vessel capacity, improving cash flow conversion through reduced capital expenditure and lowering working capital from elevated levels seen in the recent quarters. At the same time, strengthening sales momentum remains a clear priority with a strong focus on accelerating the conversion of opportunities into awards. Ou...