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TechnipFMC PLC (FTI)
NYSE:FTI
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TechnipFMC
(NYSE:FTI)
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Rating:79Outperform
Price Target:
$71.00
â–²(8.56% Upside)
Action:ReiteratedDate:02/20/26
FTI scores well on fundamentals, led by improved profitability, strong cash generation, and a significantly stronger balance sheet, reinforced by constructive 2026 guidance and shareholder-return commitments. The score is tempered by overbought technical readings that add near-term volatility risk and a relatively rich valuation with a low dividend yield.
Positive Factors
Backlog & Pipeline
A large, growing backlog and record Subsea opportunity pipeline provide multi-year revenue visibility and scheduling leverage. This underpins durable top-line support, improves procurement bargaining power, and allows the firm to prioritize higher‑margin iEPCI and services work as projects convert to revenue.
Balance Sheet Strength
Dramatic deleveraging to near‑zero debt materially reduces interest expense and financial risk, expanding strategic flexibility. A net‑cash posture supports disciplined capex, opportunistic investments or shareholder returns and provides a meaningful cushion against project delays or sector cyclicality.
Cash Generation & Capital Allocation
Sustained high free cash flow and an asset‑light capex plan (~3% of revenue) create a durable cash framework. Committing most FCF to shareholders while funding selective reinvestment disciplines capital allocation and signals management confidence in recurring cash conversion and long‑term shareholder returns.
Negative Factors
Margin Volatility
Margins have shown material variability: peak margins in 2024 gave way to compression in 2025 driven by mix, project timing and cost pressures. Persistent margin volatility weakens earnings predictability and could limit sustainable cash conversion unless mix and execution are consistently improved.
Execution & Concentration Risk
A significant share of inbound awards are large, concentrated projects requiring simultaneous execution. This raises schedule, supply‑chain and cost risk: delays or overruns on a few major programs could disproportionately depress margins, cash flow and working capital metrics over multiple quarters.
Operational Seasonality & Fleet Availability
Recurring seasonality and constrained vessel availability reduce utilization and can delay project activity, creating periodic revenue and margin softness. These operational constraints can reappear across quarters, limiting near‑term margin visibility and causing timing variability in cash receipts and working capital.
TechnipFMC (FTI) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$26.16B
Dividend Yield0.44%
Average Volume (3M)3.55M
Price to Earnings (P/E)28.0
Beta (1Y)1.13
Revenue Growth11.73%
EPS Growth45.70%
CountryUS
Employees21,000
SectorEnergy
Sector Strength52
IndustryOil & Gas Equipment & Services
Share Statistics
EPS (TTM)0.70
Shares Outstanding400,044,920
10 Day Avg. Volume4,103,372
30 Day Avg. Volume3,553,212
Financial Highlights & Ratios
PEG Ratio1.12
Price to Book (P/B)5.55
Price to Sales (P/S)1.88
P/FCF Ratio12.90
Enterprise Value/Market Cap1.07
Enterprise Value/Revenue2.81
Enterprise Value/Gross Profit16.17
Enterprise Value/Ebitda18.70
Forecast
1Y Price Target
$63.50Price Target Upside-2.91% Downside
Rating ConsensusStrong Buy
Number of Analyst Covering13
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
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 contracts for engineering, procurement, and construction (EPC) services in the oil and gas sector. Its key revenue streams include subsea projects that involve the installation of underwater systems, as well as onshore and offshore projects that provide integrated solutions for oil and gas production. The company's revenue is bolstered by long-term contracts with major energy companies, which provide a stable income base. Additionally, TechnipFMC benefits from strategic partnerships and joint ventures that enhance its technological capabilities and market reach, allowing it to participate in larger projects and expand its service offerings.
TechnipFMC Earnings Call Summary
Earnings Call Date:Feb 19, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 23, 2026
Earnings Call Sentiment Positive
The call communicated strong multi-year commercial momentum, material full-year improvement in profitability and cash generation, a record Subsea opportunities pipeline, and constructive 2026 guidance including higher margins and continued returns to shareholders. Near-term headwinds are primarily seasonal and operational (fleet maintenance, Q1 softness in Surface Technologies) and include one-time restructuring charges intended to drive longer-term efficiency gains. Overall the positive growth, margin expansion, cash generation, backlog quality and explicit guidance upgrades materially outweigh the disclosed near-term challenges.Q4-2025 Updates
Positive Updates
Strong Full-Year Revenue and EBITDA Growth
Total company revenue for FY2025 grew 9% to $9.9 billion and adjusted EBITDA increased 33% to $1.8 billion versus the prior year (excluding FX), demonstrating significant margin expansion and operating leverage.
Robust Free Cash Flow and Shareholder Distributions
Full-year free cash flow was approximately $1.4–$1.45 billion (management cited both $1.4B and $1.45B), more than double prior year levels, and total shareholder distributions grew to $1.0 billion (more than double prior year), with Q4 free cash flow of $359 million and Q4 distributions of $188 million.
Subsea Inbound, Backlog and Multi-Year Momentum
Subsea inbound orders in 2025 totaled $10.1 billion (Q4 orders $2.3B); total company inbound for the year was $11.2 billion. Subsea backlog ended FY2025 at $15.9 billion, total company backlog $16.6 billion (up 15% YoY). Over the last 3 years TechnipFMC inbounded more than $30 billion in Subsea orders.
Higher Subsea Margins and Services Mix
Full-year Subsea adjusted EBITDA margin improved by 340 basis points to 20.1%, driven by iEPCI, direct awards and Subsea Services; direct awards, iEPCI and Subsea Services accounted for more than 80% of Subsea inbound in 2025.
Record Subsea Opportunity Pipeline
The Subsea Opportunities list reached a record midpoint value of approximately $29 billion (24-month view), marking the sixth consecutive quarterly increase in opportunity value and signaling a growing multi-year project pipeline.
Surface Technologies Margin Improvement
Surface Technologies delivered sequential adjusted EBITDA of $58 million with an adjusted EBITDA margin of 18% in Q4 (up 160 basis points sequentially). For the full year, Surface Technologies adjusted EBITDA margin improved 170 basis points to 16.7% despite relatively flat revenue.
Balance Sheet and Capital Discipline
Cash and cash equivalents ended the year at $1.0 billion with a net cash position of $602 million. Management reiterated an asset-light capital approach: FY2026 capex guidance ≈ $340 million (~3% of revenue) and commitment to return at least 70% of free cash flow to shareholders.
Positive 2026 Financial Guidance
Updated FY2026 Subsea guidance targets revenue of $9.4 billion and an adjusted EBITDA margin of 21.5% at the midpoint (implying ~16% Subsea adjusted EBITDA growth vs 2025). Company adjusted EBITDA is expected to exceed $2.1 billion at the midpoint (≈15% growth vs 2025 excluding FX). Full-year free cash flow guidance: $1.3B–$1.45B (~65% conversion at midpoint).
Negative Updates
Sequential Subsea Quarter Softness
Subsea revenue in Q4 was $2.2 billion, down 5% versus Q3, and Subsea adjusted EBITDA declined 18% sequentially to $416 million due to seasonally lower vessel-based activity and reduced fleet availability from higher scheduled maintenance.
One-Time Charges and Restructuring Costs
Q4 included $52 million of restructuring, impairment and other charges related to simplification and industrialization actions, which management expects will deliver sustainable improvements in 2026 and beyond but impacted near-term results.
Surface Technologies Near-Term Revenue Pressure
Q4 Surface Technologies revenue was $323 million, down 2% sequentially with North America weakness and Middle East timing impacts noted; management expects Surface Technologies revenue to decline approximately 10% in Q1 2026 versus Q4 2025.
Seasonality and Fleet Availability Risks
Seasonal drydock/maintenance activity (notably in the North Sea) and reduced fleet availability contributed to Q4 margin and activity declines and are expected to influence Q1 results, limiting near-term margin visibility.
Concentration of Near-Term Inbound and Execution Risk
While inbound and backlog are strong, a meaningful share of recent wins are iEPCI/20K projects and large portfolio awards; concentrated execution and simultaneous project activity (e.g., Tiber and Kaskida) increases operational execution demands and reliance on schedule certainty.
Caution on Working Capital Sustainability
Although FY2025 cash conversion was exceptional (management noted conversion near ~80% for the year), management cautioned that continued improvements in working capital cannot be assumed in perpetuity and will depend on consistent commercial and operational execution.
Company Guidance
TechnipFMC guided to 2026 results with Subsea revenue of $9.4B and a Subsea adjusted EBITDA margin of 21.5% at the midpoint (implying ~16% Subsea adjusted EBITDA growth vs. 2025); Subsea Q1 is expected to be up low-single-digits sequentially with ~50 bps margin improvement from the Q4 18.9% level. Surface Technologies is guided to just over $1.2B of revenue with a ~17.25% adjusted EBITDA margin at midpoint, while Q1 Surface revenue is expected to be down ~10% QoQ with ~16.5% margin. Corporate expense is guided to $120M for the year (~$40M in Q1). Total company adjusted EBITDA is expected to exceed $2.1B at midpoint (≈15% growth vs. 2025 excluding FX), capital expenditures are expected to be approximately $340M (~3% of revenue), and full‑year free cash flow is guided to $1.3B–$1.45B (≈65% conversion at midpoint) with at least 70% of FCF targeted for return to shareholders in 2026.TechnipFMC Financial Statement Overview
Summary
Strong multi-year turnaround with sharply higher revenue and profitability by 2024–2025 and significant de-risking from a major debt reduction. Cash generation is robust, but margins and free-cash-flow growth show some volatility and conversion is only moderate.Income Statement
Revenue growth accelerated meaningfully, culminating in a strong 2025 step-up (2025 revenue growth ~132% vs ~16–17% in 2023–2024), while profitability improved sharply from losses in 2020–2022 to solid earnings in 2024–2025 (2025 net margin ~9.7%, EBIT margin ~9.6%). The main offset is margin volatility: gross and EBITDA margins peaked in 2024 and compressed in 2025, indicating some pressure from mix, costs, or project timing despite higher scale.78
Positive
Balance Sheet
Leverage improved dramatically: total debt fell from ~1.8–4.3B historically to ~34M in 2025, driving the debt-to-equity ratio down to ~0.01 (from ~0.58 in 2024 and >1.0 in 2020). Equity has remained substantial and relatively stable (~3.1–3.4B), which strengthens financial flexibility. The key watch item is that the provided return-on-equity for 2025 is shown as 0.0 despite strong net income, suggesting a data gap/measurement issue for that year rather than a fundamental deterioration.86
Very Positive
Cash Flow
Cash generation is strong in absolute dollars and improved substantially in 2025 (operating cash flow ~1.76B; free cash flow ~1.45B), supporting reinvestment and balance-sheet strength. However, free cash flow growth turned negative in 2025 (down ~6%), and the cash-to-earnings conversion is only moderate (free cash flow roughly ~82% of net income in 2025). Overall cash flow is healthy, but it shows some year-to-year variability.74
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 9.93B | 9.08B | 7.83B | 6.70B | 6.40B |
| Gross Profit | 1.72B | 1.71B | 1.34B | 896.30M | 823.90M |
| EBITDA | 1.48B | 1.41B | 964.00M | 576.80M | 464.00M |
| Net Income | 963.90M | 842.90M | 22.90M | -107.20M | 13.30M |
Balance Sheet | |||||
| Total Assets | 10.12B | 9.87B | 9.66B | 9.44B | 10.02B |
| Cash, Cash Equivalents and Short-Term Investments | 1.04B | 1.17B | 962.10M | 1.06B | 1.64B |
| Total Debt | 2.02B | 1.79B | 1.97B | 2.29B | 2.83B |
| Total Liabilities | 6.71B | 6.73B | 6.48B | 6.17B | 6.60B |
| Stockholders Equity | 3.36B | 3.09B | 3.14B | 3.24B | 3.40B |
Cash Flow | |||||
| Free Cash Flow | 1.45B | 679.40M | 451.10M | 194.20M | 589.60M |
| Operating Cash Flow | 1.76B | 961.00M | 676.30M | 352.10M | 781.30M |
| Investing Cash Flow | -298.30M | -75.80M | -125.60M | 162.20M | 768.70M |
| Financing Cash Flow | -1.62B | -648.00M | -639.80M | -796.70M | -5.02B |
TechnipFMC Technical Analysis
Positive
65.40
Price Trends
52.78
Positive
47.11
Positive
41.05
Positive
Market Momentum
3.25
Negative
83.58
Negative
91.91
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 65.4 is above the 20-day moving average (MA) of 59.55, above the 50-day MA of 52.78, and above the 200-day MA of 41.05, indicating a bullish trend. The MACD of 3.25 indicates Negative momentum. The RSI at 83.58 is Negative, neither overbought nor oversold. The STOCH value of 91.91 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FTI.
TechnipFMC Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $28.94B | 14.59 | 11.67% | 4.43% | -9.76% | -18.94% | |
79 Outperform | $26.16B | 27.98 | 29.85% | 0.44% | 11.73% | 45.70% | |
73 Outperform | $77.53B | 21.82 | 14.28% | 2.98% | -2.13% | -16.76% | |
69 Neutral | $63.96B | 24.45 | 14.49% | 2.04% | 1.51% | 30.09% | |
66 Neutral | $29.98B | 23.43 | 12.24% | 2.41% | -4.06% | -47.41% | |
65 Neutral | $15.17B | 7.61 | 4.09% | 5.20% | 3.87% | -62.32% | |
62 Neutral | $7.44B | 52.44 | 2.29% | 3.24% | -1.43% | -63.13% |
* Energy Sector Average
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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.