Sanofi raises 2026 outlook after sales grow 14.3%, while Fugro reports margin decline
Key Facts
Sanofi reported third-quarter results on October 30, posting net sales of 14.444 billion euros, up 14.3% at constant exchange rates. The company raised its 2026 outlook, pointing to low double-digit sales growth and mid-teens business earnings per share growth on the same basis. On the same day, Fugro issued a third-quarter trading update, saying revenue was 525.2 million euros, up a comparable 2.2%. But that growth coincided with a decline in adjusted earnings before interest, taxes, depreciation and amortisation to 75.9 million euros from 108.6 million euros a year earlier. The contrast between the companies is that Sanofi’s update showed growth and a raised outlook, while Fugro’s revealed margin pressure despite higher revenue.
Dupixent was a key driver of Sanofi’s sales, with revenue rising 34.8% to 5.7 billion euros in the third quarter. Sales exceeded 5 billion euros in a single quarter for the second time, according to the company’s statement. That puts the current quarter’s result above the comparison recorded in the third quarter of 2025, when the drug’s sales were 4.2 billion euros, up 26.2%. Sales had exceeded 4 billion euros in a single quarter for the first time then. The figures in the statement show continued growth in the drug’s sales, alongside its move from exceeding the 4 billion euro threshold to surpassing 5 billion euros.
Sanofi’s business earnings per share rose to 3.55 euros in the third quarter, up 19.6% at constant exchange rates. Earnings growth therefore outpaced sales growth of 14.3% on the same basis. The company tied its updated 2026 guidance to expected sales growth in the low double-digit range and business earnings per share growth in the mid-teens range. The guidance did not give a specific figure within either range. This puts the full-year outlook above what the company announced before this update, with Sanofi describing the guidance as raised.
Fugro’s adjusted earnings before interest, taxes, depreciation and amortisation margin was 14.4% in the third quarter, compared with 21.5% in the same period of 2025. The company attributed the profitability pressure to lower pricing in its offshore site-characterisation business and costs related to the war in the Middle East. It also cited one-off chartering expenses for two campaigns in Australia. This came as comparable revenue rose 2.2% to 525.2 million euros, according to the trading update. The results show a divergence between revenue growth and declining profitability, with the company identifying the pricing and cost factors that affected the margin.
Fugro’s data also showed an 8.5% decline in its order book expected to be executed over the next 12 months. The company said the drop was linked to a 36% decline in offshore wind work. This follows Fugro’s description of the operating environment in offshore wind as challenging in its third-quarter 2025 update, when it also pointed to a temporary slowdown in the start of oil and gas projects. At the time, it expected the fourth quarter of 2025 to be affected by projects being scaled back and deferred to 2026. In its annual results published in February 2026, Fugro reported 2025 revenue of 1.848 billion euros, compared with 2.275 billion euros in 2024, and a decline in its adjusted earnings before interest, taxes, depreciation and amortisation margin to 14.5% from 21.3%.
Fugro kept its full-year 2026 outlook unchanged, citing continued market uncertainty, customer caution and excess capacity in the sector. The company expected these conditions to affect the margin in the fourth quarter, which it described as a seasonally weak period. In the offshore wind site-characterisation market, Fugro expects a recovery to begin in the second half of 2027. The two outlooks point to different horizons for the companies: Sanofi’s raised guidance for 2026 growth, versus Fugro’s expectation of continued pressure in the fourth quarter and a wait for the offshore wind market to recover. Fugro’s update made no change to its full-year outlook, despite third-quarter revenue growth.