Fugro reported increased activity in the oil and gas, infrastructure and water markets during the first half of 2026, partly offsetting continued weakness in offshore wind site characterisation.
Comparable group revenue increased by 4.3% to €921 million, with second-quarter revenue rising by 10.7% year on year. Fugro said higher revenue and cost controls helped its adjusted EBIT margin improve from 2.3% to 4.1% during the first half.
The company highlighted recent contract awards including a geophysical survey covering the proposed Greater Sunrise and Bayu-Undan gas pipeline route in Timor-Leste. It has also secured a five-year contract to map critical infrastructure for the US Army Corps of Engineers.
Fugro nevertheless expects market conditions to remain challenging during the second half of the year. Its 12-month backlog declined by 13.9% to €1.28 billion, largely reflecting a 47% reduction in renewables.
European offshore wind activity remains subdued, with the slow start of new projects creating overcapacity, stronger competition and pricing pressure in marine site characterisation. Disruption caused by conflict in the Middle East has added to the uncertainty and reduced near-term visibility.
In response, Fugro is rationalising its vessel fleet and implementing measures intended to deliver an additional €50 million in annualised cost savings. Planned capital expenditure for 2026 has been reduced to around €150 million.
At the same time, the company is continuing to invest in technology intended to improve the efficiency of geophysical and geotechnical data acquisition. Its strategy includes expanding the use of remote operations, increasing its fleet of uncrewed surface vessels and further digitalising survey and interpretation workflows.
Fugro is also advancing GroundIQ, its land site-investigation system, which integrates field data acquisition and digital workflows to accelerate the characterisation of subsurface conditions.
CEO Mark Heine said a recovery in the European offshore wind market was still expected, but warned that a meaningful rebound in site-characterisation activity would take time. The company is positioning its marine and land capabilities for an eventual market recovery while relying on oil and gas, infrastructure and water projects to support near-term activity.
