Fugro N.V. (0LNT) Q4 2025 Earnings Call

Investor webinar replay

Replay transcript excerpt

Okay, welcome to the full year result presentation of Fugro. Welcome everybody, good morning, good afternoon, good evening for some of you. We'll first start with a presentation and then open up for some questions. Today, we're wrapping up what has been a very challenging year for Fugro. At the start of the year, we were expecting growth supported by 4% backlog growth and ongoing client engagement But instead of that, we actually found ourselves navigating uncertain and volatile market conditions along with shifting geopolitical circumstances. All of this created a more cautious business environment and prompting many clients to rethink their projects, the timing and the scope of their projects. And I will come back on the markets a little bit later to give a bit more detail. All in all, that resulted in a $427 million decrease in revenue. 16% on a currency-incomparable basis. That's enormous. And obviously also with the consequences for EBIT and cash generation. We have responded decisively with a cost program to control of what we can take control of after right-sizing our operations during the recent quarters. We enter 2026, we believe, in a better position. More leaner, more focused, and more resilient. And there are three specific points to highlight. We're nearing the completion of the earlier announced cost reduction program, delivering an analyzed savings of 120 million euro, resulting in more flexible cost base. We also have successfully recalibrating our backlog, replenishing basically the reduction in renewables with oil and gas and infrastructure projects. And the capital expenditure will be significantly reduced, as announced before, to 150 to 165 million for 26. Looking ahead at our markets in 26 and beyond, offshore wind is showing early signs of recov...