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Technip Energies NV (FR:TE)
:TE
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Technip Energies NV
(TE)
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Rating:69Neutral
Price Target:
€41.00
▲(11.96% Upside)
Action:DowngradedDate:02/27/26
The score is driven primarily by decent underlying financial quality but mixed near-term fundamentals (2025 revenue decline, higher debt, and lower free cash flow). Technicals are supportive of an uptrend but appear overbought, tempering the outlook. Valuation is reasonable for the metrics provided, and the latest earnings call added support via constructive 2026 guidance, an accretive acquisition, and stepped-up shareholder returns despite backlog/timing and cash-flow volatility risks.
Positive Factors
Strong cash generation
High gross cash and recurring free cash flow, together with reported cash conversion >90%, indicate durable internal funding capacity. This strengthens the company’s ability to fund capex, acquisitions, dividends and buybacks without relying on external financing, supporting long-term financial flexibility.
Accretive AM&C acquisition & TPS margin lift
The AM&C deal materially bolsters recurring TPS revenue and adds a high-margin stream, while TPS margin expansion shows operational leverage. Together these improve earnings quality and recurring profitability, diversifying away from lumpy EPC revenue and supporting sustainable margin improvement.
Large LNG awards and project momentum
Securing major LNG projects and rising project delivery revenue reinforce Technip Energies’ competitive position in large-scale EPC for LNG. Large multi-train awards underpin medium-term backlog visibility and play to the firm’s execution strengths (modularization, digital), supporting sustained project winability.
Negative Factors
Backlog decline & timing risk
An 18% backlog drop and award timing shifts reduce near-term revenue visibility and increase lumpiness in deliveries. For an EPC firm, such phasing risk can compress utilization and margins over the coming quarters and makes cash flow and earnings timing less predictable.
Debt increase in 2025
A material rise in reported debt raises leverage and interest/rollover risk, reducing financial flexibility if project receipts or awards slow. Elevated gross debt after acquisition financing increases sensitivity to cash-flow swings and could constrain opportunistic investments if volatility persists.
Cash-flow volatility and FCF drop
Wide swings in operating and free cash flow—despite strong years—undermine reliability of internal funding. A steep FCF decline reduces certainty around sustained dividend/buyback policies and heightens reliance on careful working-capital management amid project phasing and timing variability.
Technip Energies NV (TE) vs. iShares MSCI France ETF (EWQ)
Market Cap
€6.47B
Dividend Yield2.64%
Average Volume (3M)304.55K
Price to Earnings (P/E)18.0
Beta (1Y)0.99
Revenue Growth17.19%
EPS Growth11.76%
CountryFR
Employees17,000
SectorEnergy
Sector Strength52
IndustryOil & Gas Equipment & Services
Share Statistics
EPS (TTM)0.52
Shares Outstanding178,378,710
10 Day Avg. Volume271,082
30 Day Avg. Volume304,552
Financial Highlights & Ratios
PEG Ratio-2.07
Price to Book (P/B)2.55
Price to Sales (P/S)0.80
P/FCF Ratio11.17
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
€39.46Price Target Upside7.76% Upside
Rating ConsensusHold
Number of Analyst Covering8
EPS Forecast (FY)2.83
Revenue Forecast (FY)€8.40B
Technip Energies NV Business Overview & Revenue Model
Company DescriptionTechnip Energies N.V., together with its subsidiaries, operates as an engineering and technology company for the energy transition in Europe, Russia, the Asia Pacific, Africa, the Middle East, and the Americas. The company operates through two segments, Projects Delivery, and Technology, Products and Services. It is involved in the engineering, procurement, construction management, commissioning, and transport and installation of various energy projects. The company also engages in designing, engineering, procurement, construction, and project management of various onshore and offshore facilities related to gas monetization, ethylene, hydrogen, refining, and chemical processing from biofuels and hydrocarbons. In addition, it develops, designs, commercializes, and integrates a range of technologies in gas monetization, refining, petrochemicals, and fertilizers, hydrogen, and sustainable chemistry; provides land and marine-based loading and transfer systems services to the oil and gas, petrochemical, chemical, and decarbonization industries; and offers a range of project management consulting services to the energy industry. Further, it offers robotics, asset monitoring, and surveillance solutions, as well as nondestructive testing and material testing solutions for harsh environments of a range of industries, such as nuclear, oil and gas, offshore wind, or aerospace; commercializes a complete solution for inspection, and maintenance and repair for its proprietary software supervision Cyxense Commander, which is used to remotely control an heterogeneous fleet of robots; develops a range of proprietary third party robots; and provides digital services. Technip Energies N.V. was incorporated in 2019 and is headquartered in Nanterre, France.
How the Company Makes MoneyTechnip Energies generates revenue primarily through its engineering and project management services, which include the execution of large-scale projects for oil and gas clients, as well as for renewable energy initiatives. Key revenue streams come from engineering contracts, technology licensing, and the sale of proprietary technologies and systems. The company benefits from long-term contracts with major energy companies, strategic partnerships, and joint ventures that enhance its project portfolio and market reach. Additionally, the growing demand for sustainable energy solutions and the company's expertise in carbon capture and storage technologies further contribute to its earnings potential.
Technip Energies NV Earnings Call Summary
Earnings Call Date:Feb 26, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 30, 2026
Earnings Call Sentiment Positive
The call presented multiple strong operational and financial positives: record revenue and recurring EBITDA growth, high free cash flow and conversion metrics, improved TPS margins, a major LNG award (NFW) that enhances medium-term visibility, and an accretive acquisition (AM&C) to strengthen TPS recurring revenue. Offsetting risks include lower TPS revenues and backlog shrinkage, project backlog timing shifts, a decline in net financial income, working capital timing volatility, and slower pockets of decarbonization activity due to policy/offtake uncertainty. On balance, the highlights — notably growth, cash generation, strategic acquisition, and major contract awards — materially outweigh the lowlights.Q4-2025 Updates
Positive Updates
Record Revenue and Recurring EBITDA Growth
Revenue reached EUR 7.2 billion, up 5% year-over-year, and recurring EBITDA rose 5% to EUR 638 million. EPS (excluding nonrecurring items) increased ~4% year-over-year.
Strong Free Cash Flow and High Cash Conversion
Free cash flow excluding nonrecurring items increased ~5% to EUR 578 million. Cash conversion from recurring EBITDA (excluding nonrecurring items) exceeded 90% (noted as >91% in remarks). Group gross cash was >EUR 3.8 billion and economic net cash adjusted for project cash is approximately EUR 1 billion.
Enhanced Shareholder Returns
Proposed dividend of EUR 1.00 per share (up 18% year-over-year) and a EUR 150 million share buyback program. Management targets distributing 25-35% of recurring free cash flow and expects to return ~EUR 300 million to investors in 2026 (~5% of market cap).
Project Delivery Momentum and Major Award (NFW)
Project delivery revenues increased 10% to EUR 5.4 billion. Announced award of North Field West (two 8 mtpa LNG trains) complementing existing NFE/NFS work and bringing 82 mtpa of LNG under construction globally. Management expects strong near-term award momentum and guided project delivery revenues for 2026 at EUR 6.3–6.7 billion with ~8% EBITDA margin.
TPS Margin Expansion and Strategic Acquisition (AM&C)
TPS achieved EBITDA margins up 140 basis points to 14.3% despite a 9% revenue decline. Closed acquisition of AM&C on Dec 31 (immediately accretive): AM&C expected to contribute >EUR 200 million revenue in 2026 with EBITDA margins around 25%, strengthening recurring revenue mix and TPS growth trajectory.
Safety and Sustainability Progress
Surpassed 320 million worked hours in 2025 with zero fatalities. Scope 1 & 2 emissions reduced by 46% versus baseline. Launched a new 2030 sustainability roadmap and scorecard that integrates sustainability into value creation.
Solid Returns and Operational Efficiency
Reported a 19% return on equity. Capital expenditure remained low (~1% of revenue, EUR 89 million). Demonstrated operational execution (replication/modularization/digital) and disciplined capital deployment to improve earnings quality.
Negative Updates
TPS Revenue Decline and Backlog Reduction
TPS revenues fell ~9% year-over-year and TPS backlog declined to just over EUR 1.5 billion. Book-to-bill for TPS was 0.84, indicating awards in the period did not fully replace revenues; backlog remains understated by PMC call-offs but still downward.
Project Delivery Backlog Decrease and Award Timing Risk
Project delivery backlog declined 18% year-over-year to EUR 14.4 billion due to major awards shifting to the right. This lumpiness creates short-term visibility and phasing risk despite management confidence in near-term award inflection.
Lower Net Financial Income and Elevated Effective Tax Rate
Net financial income fell by EUR 30 million to EUR 89 million (attributed to global interest rate trends). Effective tax rate was 29.7%, at the upper end of guidance, weighing on net income.
Working Capital and Cash Conversion Volatility
Free cash flow inclusive of nonrecurring items showed lower conversion (reported 78% from recurring EBITDA inclusive of nonrecurring items). Year-end working capital experienced timing swings (invoices paid early Jan; ERP-related supplier payments), resulting in uneven short-term cash flows.
Slowdown and Uncertainty in Some Decarbonization Projects
Certain decarbonization opportunities (e.g., some carbon capture, SAF and blue-molecule projects) have slowed due to offtake and policy uncertainty and the need for stable carbon pricing, reducing near-term project visibility in these pockets.
One-off and Financing Impacts
Q4 included a supplemental EUR 20 million bonus expense tied to strong performance. Gross debt rose to EUR 1 billion (commercial paper used to partially finance the AM&C acquisition) and the AM&C cash outlay affected year-end balance sheet positioning.
Company Guidance
For 2026 management guided project delivery revenues of EUR 6.3–6.7 billion with an EBITDA margin of ~8% and Technology, Products & Services revenues of EUR 2.0–2.2 billion with a 14.5% EBITDA margin (this reflects a full-year contribution from the AM&C acquisition, which is expected to add >EUR 200 million of revenue in 2026 at ~25% EBITDA); other assumptions (effective tax rate, corporate costs) are consistent with FY‑2025, and the group has earmarked up to EUR 50 million for adjacent investments (eg, Reju, with a possible FID by end‑2026). Management reiterated its 2028 ambition of EUR 800m+ EBITDA, kept a dividend policy of distributing 25–35% of recurring free cash flow (the proposed EUR 1.00/share dividend is +18% and implies a ~30% payout), and announced a EUR 150m share buyback (targeting ~EUR 300m returned to shareholders in 2026, ~5% of market cap). Balance‑sheet and cash assumptions underpinning guidance include project‑adjusted net cash of ~EUR 1.0 billion, >EUR 3.8 billion gross cash, ~EUR 1.0 billion gross debt, FY‑2025 revenue EUR 7.2 billion, recurring EBITDA EUR 638 million, recurring free cash flow (ex‑nonrecurring) ~EUR 578 million (or EUR 497 million excluding working capital and provisions), cash conversion ~78% inclusive of nonrecurring items and >90% when adjusted, a modest working capital inflow of EUR 22 million, and capex around EUR 89 million (~1% of revenues).Technip Energies NV Financial Statement Overview
Summary
Profitability improved into 2024 (net margin rising to ~5.8%) and equity built steadily, supporting resilience. Offsetting this, 2025 shows a sharp revenue contraction (-20.9%), a notable debt increase (to ~€1.44B), and a material free-cash-flow step-down (~€519M, down ~63% YoY), which weakens near-term consistency.Income Statement
Profitability is steady to improving over 2020–2024, with net income rising and net profit margin improving from ~3.6% (2020) to ~5.8% (2024). Revenue growth has been uneven (down in 2022–2023, up in 2024), and the latest annual period (2025) shows a sharp revenue contraction (-20.9%) alongside slightly lower net income versus 2024. Margins look reasonably consistent for the sector, but the 2025 top-line decline is a clear near-term watch item.62
Positive
Balance Sheet
The balance sheet looks solid with equity building consistently from 2021 to 2025 (about €1.48B to €2.27B), supporting improving financial resilience. Leverage was moderate in 2024 (debt-to-equity ~0.47) and improved versus earlier years (~0.67 in 2021). A key negative is the jump in total debt in 2025 (to ~€1.44B from ~€0.98B in 2024), which increases financial risk if earnings soften. Overall assets have trended higher, indicating growth in scale, but the 2025 debt step-up is the main balance-sheet concern.70
Positive
Cash Flow
Cash generation was strong in 2020–2021 and improved again in 2024, with free cash flow reaching ~€761M and running at ~90% of net income (good earnings quality). However, cash flows have been volatile: operating cash flow fell sharply in 2022–2023, rebounded in 2024, and then free cash flow dropped materially in 2025 (~€519M, down ~63% year over year). The business can produce meaningful cash, but the variability—especially the 2025 pullback—reduces confidence in near-term consistency.60
Neutral
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 7.20B | 6.72B | 6.00B | 6.28B | 6.43B |
| Gross Profit | 964.20M | 918.10M | 923.20M | 884.30M | 912.30M |
| EBITDA | 445.60M | 702.40M | 606.20M | 593.50M | 524.70M |
| Net Income | 363.70M | 390.70M | 296.80M | 300.70M | 244.60M |
Balance Sheet | |||||
| Total Assets | 9.80B | 9.24B | 8.67B | 8.69B | 8.38B |
| Cash, Cash Equivalents and Short-Term Investments | 3.64B | 3.85B | 3.37B | 3.48B | 3.64B |
| Total Debt | 1.44B | 980.70M | 993.40M | 986.20M | 989.10M |
| Total Liabilities | 7.53B | 7.13B | 6.72B | 6.96B | 6.87B |
| Stockholders Equity | 2.27B | 2.08B | 1.89B | 1.71B | 1.48B |
Cash Flow | |||||
| Free Cash Flow | 518.90M | 760.60M | 330.40M | 137.70M | 884.80M |
| Operating Cash Flow | 608.30M | 845.20M | 378.80M | 184.40M | 934.40M |
| Investing Cash Flow | -590.40M | -97.50M | -108.00M | -57.60M | -53.00M |
| Financing Cash Flow | -44.90M | -364.80M | -319.00M | -396.30M | -558.60M |
Technip Energies NV Technical Analysis
Positive
36.62
Price Trends
33.00
Positive
34.11
Positive
35.89
Positive
Market Momentum
0.89
Negative
69.39
Neutral
82.47
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FR:TE, the sentiment is Positive. The current price of 36.62 is above the 20-day moving average (MA) of 33.60, above the 50-day MA of 33.00, and above the 200-day MA of 35.89, indicating a bullish trend. The MACD of 0.89 indicates Negative momentum. The RSI at 69.39 is Neutral, neither overbought nor oversold. The STOCH value of 82.47 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FR:TE.
Technip Energies NV Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
82 Outperform | €7.10B | 17.25 | 77.67% | 4.99% | 35.00% | 24.05% | |
78 Outperform | €3.78B | 10.08 | 14.24% | 8.70% | -0.98% | 20.09% | |
77 Outperform | €1.76B | 8.18 | 21.70% | 6.70% | -14.28% | -9.30% | |
75 Outperform | €886.50M | 15.93 | 4.13% | 47.20% | -8.54% | 47.48% | |
73 Outperform | €143.91B | 13.00 | 12.75% | 5.87% | -11.20% | -13.26% | |
69 Neutral | €6.47B | 17.97 | ― | 2.64% | 17.19% | 11.76% | |
65 Neutral | $15.17B | 7.61 | 4.09% | 5.20% | 3.87% | -62.32% |
* Energy Sector Average
FR:TE
Technip Energies NV
36.62
6.98
23.54%
FR:GTT
Gaztransport et technigaz
192.60
47.75
32.96%
FR:MAU
Etablissements Maurel & Prom
8.93
3.50
64.39%
FR:RUI
Rubis SCA
36.64
12.04
48.95%
FR:EC
Totalenergies EP Gabon
197.00
38.30
24.13%
FR:TTE
TotalEnergies SE
67.28
12.54
22.92%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.