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Investing.com -- Fugro ’s (AS:FUGR) stock jumped over 6% on Friday following its full-year 2024 results, which showed a strong rise in profitability, robust cash flow, and an increased dividend payout.
The Dutch geotechnical services firm reported a 20% jump in EBIT margin to 13.8%, with net profit reaching €274 million.
Operating cash flow climbed to €406 million, and shareholders will receive a dividend of €0.75 per share, nearly double the previous year’s €0.40.
Investors reacted positively to the company’s solid financial performance, particularly its strong results in the Europe-Africa and Asia Pacific regions, which offset weaker performances in the Americas and Middle East.
Fugro’s revenue rose 4% to €2.28 billion, supported by continued expansion in offshore wind and infrastructure projects. The company’s backlog for the next 12 months increased to €1.58 billion, a 4.3% rise, signaling strong demand for its services.
Fugro credited its improved performance to the expansion of its geotechnical fleet and a focus on asset-lighter, low-carbon solutions such as uncrewed surface vessels.
The Marine business grew by 5.5%, while the Land segment saw a slight decline of 2.2%, impacted by lower activity in the U.S. and Middle East. Vessel utilization stood at 70%, down from 75% in 2023 due to a weaker geophysical fleet performance.
By region, Europe-Africa led growth with a 12.1% revenue increase, driven by offshore wind projects. Asia Pacific followed with 16.7% growth, supported by geotechnical investigations and oil and gas infrastructure monitoring.
The Americas saw a 10.9% decline, as key offshore wind and carbon capture projects paused due to election-related policy uncertainty. In the Middle East & India, revenue dropped 16.5%, reflecting cautious spending by oil companies and regional conflicts affecting vessel movement.
The company’s financial position strengthened with a reduction in net debt to €96.2 million, down from €110.5 million a year earlier.
Return on capital employed improved to 18.1%, exceeding mid-term targets. Despite lower revenue in some markets, Fugro maintained profitability through cost control and efficient project execution.
The outlook for 2025 remains positive, with the company expecting revenue growth and EBIT margins within the 11-15% range.
Fugro is positioning itself for long-term expansion, targeting emerging sectors such as carbon capture, critical minerals, and offshore wind.
Although challenges persist in the U.S. offshore wind market, the company sees sustained demand for its geo-data services in infrastructure and energy transition projects.