Fugro, a global leader in geotechnical, survey, and geoscience services, has withdrawn its financial guidance for 2025, citing widespread project delays and descoping that have collectively impacted revenues by an estimated €100 million. The company now anticipates a significant shortfall in its previously projected 20% revenue growth for the year, although it maintains expectations for an improved second half compared to the first.
The Dutch firm attributed the setbacks to postponements across a diverse range of projects, with the majority shifting into 2026. Notably, Fugro highlighted a further weakening in sentiment within the offshore wind sector, but the most pronounced impacts are currently being felt in the oil and gas market. Here, project timelines are being affected by tighter cash and cost controls, a response to the downward pressure on commodity prices.
“Activity levels are expected to rise, but uncertainties are most visible in early-stage site characterisation, particularly in the Europe-Africa region where Fugro operates much of its fleet,” the company stated. This region, a critical area for Fugro’s operations, is facing heightened volatility, with project delays and descoping contributing to the revised financial outlook.
Chief executive Mark Heine confirmed that Fugro will provide a further update at its Q3 trading update on 31 October. In the interim, the company has announced additional measures to safeguard profitability and cash flow. These include an extra 300 job cuts on top of the 750 already communicated, as well as optimisation of fleet operations. Several geophysical vessels will be warm-stacked this winter as part of these efforts.
Fugro expects these steps to begin taking effect in late 2025, with the full impact anticipated in 2026. The company also plans to implement significant capital expenditure reductions next year. These measures underscore the challenging environment in which Fugro is operating, as it navigates project delays and seeks to maintain financial stability.
The news raises questions about the broader implications for the energy sector. With Fugro’s operations spanning offshore wind and oil and gas, the company’s struggles may reflect wider trends in these industries. The postponement of projects and the tightening of budgets in response to lower commodity prices could signal a period of consolidation and caution. Meanwhile, the weakening sentiment in offshore wind suggests that even renewable energy projects are not immune to the current economic climate.
As Fugro works to stabilise its operations and financial outlook, the energy sector will be watching closely. The company’s ability to weather this storm and adapt to changing market conditions will not only shape its own future but also provide insights into the resilience and adaptability of the energy industry as a whole.