Jefferies has upgraded Fugro to a “hold” rating from “underperform,” citing improving sentiment in the offshore wind sector. This follows a challenging outlook for fiscal year 2025, where the company anticipates significant pressure. Fugro's shares rose over 6% on Friday. The upgrade reflects a belief that recent developments will positively impact the company's financial performance.

Jefferies expects Fugro's earnings before interest and taxes to plummet 76% to €74 million in fiscal 2025, from €314.6 million in 2024. Revenue is projected to fall 19% to €1.85 billion. The firm pointed to a successful U.K. offshore wind auction and commitments across Europe as drivers for the upgrade, signaling a potential turnaround.

However, Fugro has warned of a tough winter season and reduced activity in offshore wind, along with continued spending cuts in oil and gas. Jefferies anticipates a €100 million revenue reduction in Q4 2025 due to project postponements and scope reductions. The brokerage also highlighted Fugro's cost-cutting measures, including a reduction of 10% of the workforce.

Looking ahead, Jefferies raised its fiscal 2026 EBIT estimate by 38% and set a price target of €10. Fugro’s market capitalization is listed at €1.2 billion. The upgrade comes after Fugro shares fell 49% in fiscal 2025, before recovering 28% year-to-date. Investors will be watching closely to see if the improved wind sentiment translates into stronger financial results.