Trump’s Offshore Wind Crackdown Sends Shockwaves Through Supplier Industry

By Chloé Meley (Bloomberg) — The Trump administration’s attack on the offshore wind industry is squeezing a key revenue stream for the subcontractors that help build wind farms, forcing many to put investment plans on ice.

Fugro NV, a provider of geological data to the energy sector, recently withdrew guidance after issuing three profit warnings in 12 months, partly blaming offshore wind challenges. It also announced a more restrained approach to capital expenditure in 2026, including plans to invest in unmanned service vessels, autonomous ships that can be used for environmental monitoring and hydrographic surveying.

As a supplier to Orsted A/S, the Danish wind farm operator entangled in a battle with President Donald Trump after an almost finished project was halted, Fugro is among smaller companies dealing with the knock-on effects. Fewer projects means those who supply platforms, parts, raw materials and services will see less activity.

Suppliers “have wait it out a little bit,” KBC Securities analyst Kristof Samoy said in an interview. “In the meantime they can try to capture as much growth in new pockets as possible, limit their cost base and scale back on their investment plans.”

Wind tower maker CS Wind Corp. is cutting 220 jobs at a Danish facility following offshore wind project cancellations. SIF Holding NV, a steel supplier to offshore wind companies, lowered its outlook in August as projects dried up.

Offshore Wind Suppliers Shares Are Under Pressure

The Trump administration isn’t letting up. It recently told a federal court that it intends to reconsider a key US government approval that authorized construction of a project near New York and New Jersey.

Fugro is particularly exposed given its large presence in the US and its spot at the very beginning of the supply chain — doing geological survey work to assess the strength of the sea floor. A slowdown in offshore wind is also compounded by weakness in the oil and gas markets.

“Fugro was seen as a diversification play between renewable and traditional energy markets,” Samoy said. “But with everything going on in the world, people are holding back on making large investment decisions for all these energy projects.”

Fugro’s Profit Is Expected to Tumble in 2025

SIF, which booked 29% of revenue in the US last year, cited a slowdown in offshore wind development in the short term when it cut guidance.

“The margins on new projects for the coming two, three years will probably be lower, given that there’s just less work out there,” Kepler Cheuvreux analyst Philip Ngotho said in an interview, referring to SIF. For suppliers more broadly, “if earnings are more under pressure, there’s less cash, there’s less room to invest. The rate of innovation could slow down a little bit.”

Less activity creates a “vicious cycle” of suppliers postponing investments, resulting in higher costs and higher risks, which in turn weakens the investment case for offshore wind developers, according to KBC Securities analyst Guy Sips.

Involvement in alternative markets like liquefied natural gas terminals could provide some relief, Samoy said.

Political support in markets outside the US may also provide opportunities. The UK’s latest subsidy round for renewable projects will focus heavily on wind.

Japan and Taiwan also have ambitious offshore wind goals, Samoy said.

Deme Group NV, a provider of dredging — or underwater excavation — to the offshore wind industry, recently won a contract worth as much as €300 million ($352 million) for the Formosa 4 offshore wind farm in Taiwan, covering the transport and installation of 35 foundations and the offshore substation.

“Suppliers are all quite convinced that the offshore wind market will return, that it’s more of a near-term recalibration before it grows again,” Ngotho said.

© 2025 Bloomberg L.P.

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