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TechnipFMC PLC (FTI)
NYSE:FTI
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TechnipFMC (FTI) AI Stock Analysis

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FTI

TechnipFMC

(NYSE:FTI)

Rating:82Outperform
Price Target:
$42.00
â–²(5.93% Upside)
TechnipFMC's strong financial performance and positive earnings call provide a solid foundation for future growth, while technical analysis supports the current price momentum. Valuation metrics suggest the stock is fairly valued, aligning with its growth prospects.
Positive Factors
Credit Rating
Moody's credit upgrade to BBB- opens the door for more attractive financing terms for future debt facilities.
Financial Performance
FTI's P&L continues to surprise positively with 2Q revenue and margins exceeding guidance.
Shareholder Returns
FTI has remained active in share repurchase at $500MM YTD vs $400MM in all of 2024.
Negative Factors
Commodity Prices
FTI outperformed the OIH by ~600bps after reiterating guidance for EBITDA and orders despite the weakening commodity price and uncertain macro environment.
Industry Consolidation
Management stated they do not expect any impact on their order outlook for '25 or the multi-year horizon from the proposed Saipem/Subsea7 merger.
Surface Outlook
The Surface outlook seems to require a sharp increase from 1Q which may pose some risk.

TechnipFMC (FTI) vs. SPDR S&P 500 ETF (SPY)

TechnipFMC Business Overview & Revenue Model

Company DescriptionTechnipFMC plc engages in the oil and gas projects, technologies, and systems and services businesses in Europe, Central Asia, North and Latin America, the Asia Pacific, Africa, and the Middle East. The Subsea segment engages in the design, engineering, procurement, manufacturing, fabrication, installation, and life of field services for subsea systems, subsea field infrastructure, and subsea pipe systems used in oil and gas production and transportation. It provides subsea production and processing systems; subsea umbilicals, risers, and flowlines; vessels; and Subsea Studio for optimizing the development, execution, and operation of current and future subsea fields. This segment also offers well and asset services; research, engineering, manufacturing, and supply chain; and product management services. The Surface Technologies segment designs, manufactures, and services products and systems used in land and shallow water exploration and production of crude oil and natural gas. This segment offers drilling and completion systems; surface wellheads and production trees systems; iComplete, a digitally enabled pressure control system; fracturing tree and manifold systems; pressure pumping; well service pumps; well control, safety and integrity systems, multiphase meter modules, in-line separation and processing systems, and standard pumps; flowback and well testing services; skid systems; automation and digital systems; and flow measurement and automation solutions. It also offers planning, testing and installation, commissioning, operations, replacement and upgrade, maintenance, storage, preservation, intervention, integrity, decommissioning, and abandonment; and supplies flexible lines and flowline products and services. TechnipFMC plc has a strategic alliance with Talos Energy Inc. to develop and deliver technical and commercial solutions to Carbon Capture and Storage projects. The company was founded in 1884 and is based in Newcastle Upon Tyne, the United Kingdom.
How the Company Makes MoneyTechnipFMC generates revenue primarily through its Subsea and Surface Technologies segments. The Subsea segment earns money by providing subsea production systems and related services to oil and gas operators, including the installation and maintenance of underwater infrastructure. The Surface Technologies segment focuses on providing equipment and services for onshore oil and gas production, including flow control and processing solutions. The company also benefits from long-term contracts with major energy companies, which provide a steady stream of income. Additionally, strategic partnerships and joint ventures with key players in the energy sector enhance TechnipFMC's market presence and revenue potential.

TechnipFMC Earnings Call Summary

Earnings Call Date:Jul 24, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Oct 22, 2025
Earnings Call Sentiment Positive
The earnings call reflects a strong performance with significant revenue and EBITDA growth, record inbound orders, and strategic technological advancements. Despite challenges in North America and restructuring charges, the overall outlook remains positive with improved financial guidance and a strong commitment to shareholder returns.
Q2-2025 Updates
Positive Updates
Strong Revenue and EBITDA Growth
Total company revenue for the period was $2.5 billion, with an adjusted EBITDA of $509 million, reflecting a margin of 20.1% when excluding foreign exchange impacts. This indicates robust financial health and operational efficiency.
Significant Free Cash Flow and Shareholder Returns
The company generated free cash flow of $261 million and distributed $271 million through dividends and share buybacks, highlighting a strong commitment to returning value to shareholders.
Record Inbound Subsea Orders
Subsea orders achieved $2.6 billion, with a diverse set of awards. The company remains confident in exceeding $10 billion of Subsea inbound orders for the year, supported by strong customer relationships and technology leadership.
Technological Innovations and Collaborations
The company announced a new iEPCI collaboration with VÃ¥r Energi and developed innovative technologies like hybrid flexible pipe and all-electric systems, showcasing their leadership in technological advancements.
Improved Guidance and Financial Outlook
The company increased its full year guidance for adjusted EBITDA to approximately $1.8 billion, an increase of 30% versus the prior year, supported by a substantial backlog and strong execution.
Negative Updates
Challenges in North America
The company exited unprofitable markets and product lines in North America, reducing their footprint by 50% over the last 3 years, although this was part of a transformation to improve operating margins.
Restructuring and Impairment Charges
Restructuring, impairment and other charges totaling $16 million were recorded, mostly related to business transformation initiatives in Surface Technologies.
Market Challenges and Competition
The market is not without challenges, including competitive dynamics in certain regions. The company continues to navigate these issues while maintaining strong performance.
Company Guidance
During the TechnipFMC Second Quarter 2025 Earnings Conference Call, the company provided guidance that reflected strong financial performance and a positive outlook. With total company revenue reported at $2.5 billion and an adjusted EBITDA of $509 million, the adjusted EBITDA margin was 20.1% when excluding foreign exchange impacts. Free cash flow for the quarter reached $261 million, and the company distributed $271 million through dividends and share buybacks. Subsea orders were a highlight, with $2.6 billion in inbound orders contributing to a total company backlog of $16.6 billion. The company expressed confidence in exceeding $10 billion of Subsea inbound orders for the year and achieving a three-year goal of $30 billion by the end of 2025. Guidance for the third quarter included expectations of low to mid-single-digit sequential revenue growth in Subsea with a similar adjusted EBITDA margin to Q2's 21.8%, while Surface Technologies revenue was anticipated to increase low single digits sequentially with an adjusted EBITDA margin of approximately 16%. For the full year, adjusted EBITDA is expected to approximate $1.8 billion, and free cash flow is projected to reach the top end of the $1 billion to $1.15 billion range.

TechnipFMC Financial Statement Overview

Summary
TechnipFMC shows strong financial performance with robust revenue growth, high profit margins, stable balance sheet, and excellent cash flow management. The company is well-positioned financially in its industry.
Income Statement
85
Very Positive
TechnipFMC exhibits strong revenue growth with a TTM (Trailing-Twelve-Months) revenue increase of 4.41% from the previous annual period. The gross profit margin has significantly improved to 29.15%, and net profit margin is robust at 9.6%. The EBIT margin stands at 12.16%, showing solid operational efficiency. EBITDA margin is also healthy at 14.54%. These metrics indicate strong profitability and operational performance.
Balance Sheet
78
Positive
The balance sheet shows a stable financial position with a debt-to-equity ratio of 0.31, indicating good leverage management. The equity ratio is 32.26%, suggesting a balanced capital structure. Return on equity (ROE) is high at 28.01%, reflecting effective use of equity to generate profits. Overall, the balance sheet reflects financial stability with a manageable level of debt.
Cash Flow
88
Very Positive
TechnipFMC demonstrates strong cash flow performance with a substantial increase in free cash flow from the previous period, growing by 93.99%. The operating cash flow to net income ratio of 1.8 and free cash flow to net income ratio of 1.45 indicate efficient cash conversion and strong liquidity. These metrics highlight excellent cash management and liquidity strength.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue9.48B9.08B7.82B6.70B6.40B6.53B
Gross Profit2.76B1.72B1.27B197.30M33.90M694.80M
EBITDA1.38B1.41B706.60M567.90M466.50M-3.02B
Net Income910.80M842.90M56.20M-36.50M87.00M-3.52B
Balance Sheet
Total Assets10.08B9.87B9.66B9.44B10.02B19.69B
Cash, Cash Equivalents and Short-Term Investments950.00M1.17B962.10M1.06B1.64B1.27B
Total Debt1.60B1.79B1.97B2.29B2.83B4.32B
Total Liabilities6.79B6.73B6.48B6.17B6.60B15.43B
Stockholders Equity3.25B3.09B3.14B3.24B3.40B4.15B
Cash Flow
Free Cash Flow1.32B679.40M467.80M194.20M589.60M400.80M
Operating Cash Flow1.64B961.00M693.00M352.10M781.30M656.90M
Investing Cash Flow-303.70M-75.80M-125.60M162.20M817.30M-180.60M
Financing Cash Flow-1.11B-648.00M-656.50M-796.70M-5.07B-1.08B

TechnipFMC Technical Analysis

Technical Analysis Sentiment
Positive
Last Price39.65
Price Trends
50DMA
35.31
Positive
100DMA
32.77
Positive
200DMA
31.19
Positive
Market Momentum
MACD
0.87
Negative
RSI
75.72
Negative
STOCH
91.33
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FTI, the sentiment is Positive. The current price of 39.65 is above the 20-day moving average (MA) of 36.00, above the 50-day MA of 35.31, and above the 200-day MA of 31.19, indicating a bullish trend. The MACD of 0.87 indicates Negative momentum. The RSI at 75.72 is Negative, neither overbought nor oversold. The STOCH value of 91.33 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FTI.

TechnipFMC Peers Comparison

Overall Rating
UnderperformOutperform
Sector (66)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
82
Outperform
$15.43B17.7829.27%0.50%12.15%91.88%
77
Outperform
$54.05B11.9919.78%3.14%0.94%-4.63%
75
Outperform
$19.35B10.6218.16%3.03%-4.08%-29.26%
75
Outperform
$19.08B9.6412.06%4.63%-12.06%-21.43%
74
Outperform
$44.72B14.8418.32%1.94%2.13%54.69%
70
Outperform
$4.86B10.767.31%3.82%-1.21%-54.44%
66
Neutral
$15.26B7.303.22%5.27%4.16%-60.82%
* Energy Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
FTI
TechnipFMC
39.65
14.63
58.47%
BKR
Baker Hughes Company
46.32
12.95
38.81%
HAL
Halliburton
22.47
-5.79
-20.49%
NOV
NOV
13.36
-2.70
-16.81%
SLB
Schlumberger
36.01
-4.01
-10.02%
TS
Tenaris SA
35.84
8.42
30.71%
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.Date of analysis: Jul 27, 2025