Dutch geological data specialist Fugro said on Friday the offshore wind downturn has yet to bottom out and that a recovery was not expected before 2027, sending its shares down around 10%.
The company said uncertainty remained high due to weak offshore wind markets and the conflict in the Middle East, adding that shorter backlog visibility and increased competition would weigh on second-half performance.
Fugro's 12-month backlog fell 13.9%, with offshore wind backlog slumping 47%.
The company, which provides geotechnical, survey, subsea and geosciences services, entered 2026 having posted a 21 million euro ($24.20 million) annual loss and cut its dividend by 80% due to project delays and cancellations in the renewables sector, particularly in the U.S.
Despite the weaker outlook, Fugro reported a 4.3% increase in first-half revenue to 920.5 million euros, driven by growth in oil and gas, infrastructure and water markets.
Its earnings before interest and taxes (EBIT) margin improved to 4.1% from 2.3% a year earlier.
Chief Executive Mark Heine said the offshore wind market had deteriorated more than expected.
"We felt that we would have more stabilisation, that the low point in the market was already reached this year, whereas we now see that the market apparently can come down a little bit more before it moves up again," Heine told Reuters.
Heine said Fugro now expects offshore wind activity to start recovering in 2027, adding that governments are still working on new contract structures needed to restart projects.
He added that tensions in the Middle East had disrupted operations in parts of the Gulf, where GPS signal-jamming prevented vessels from operating on some days.
"We had to basically stop working when we didn't have navigation signals," he said.
($1 = 0.8679 euros)
(Reuters - Reporting by Jerome Terroy and Hugo Lhomedet; Editing by Nivedita Bhattacharjee and Sonia Cheema)