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TechnipFMC (FTI)
:FTI
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TechnipFMC
(NYSE:FTI)
Rating:82Outperform
Price Target:
$42.00
â–²(17.98% Upside)
Positive Factors
Financial Performance
The 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.
Subsea Orders
Subsea orders of $2.8B were stronger than expected and management reiterated guidance for more than $10B of Subsea inbound in 2025 demonstrating the confidence in the durability of the business even in the current uncertain commodity/macro environment.
Negative Factors
Market Conditions
Despite the strong performance, there are investor concerns over sluggish offshore driller commentary impacting the Subsea order outlook.
Surface Segment 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)
Market Cap
$14.63B
Dividend Yield0.56%
Average Volume (3M)3.80M
Price to Earnings (P/E)16.9
Beta (1Y)1.02
Revenue Growth12.15%
EPS Growth91.88%
CountryUS
Employees21,000
SectorEnergy
Sector Strength44
IndustryOil & Gas Equipment & Services
Share Statistics
EPS (TTM)0.68
Shares Outstanding411,016,480
10 Day Avg. Volume2,573,773
30 Day Avg. Volume3,798,329
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap1.04
Enterprise Value/Revenue1.60
Enterprise Value/Gross Profit5.49
Enterprise Value/Ebitda11.00
Forecast
1Y Price Target
$42.30Price Target Upside18.82% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering12
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: 5.98%|
Next Earnings Date:Oct 22, 2025
Earnings Call Sentiment Positive
TechnipFMC's earnings call reflects a strong financial performance with significant achievements in the Subsea segment and positive outlook for offshore activities. While there were challenges in the North America market and restructuring charges, the highlights, particularly the strong order book and strategic partnerships, significantly outweigh the lowlights.Q2-2025 Updates
Positive Updates
Strong Financial Performance
TechnipFMC reported total company revenue of $2.5 billion, with an adjusted EBITDA of $509 million, achieving a margin of 20.1%. Free cash flow was $261 million, and $271 million was distributed through dividends and share buybacks.
Subsea Segment Success
Subsea orders reached $2.6 billion, contributing to a total company backlog increase of 5% to $16.6 billion. Revenue for the Subsea segment was $2.2 billion, a 14% increase compared to the first quarter.
Strong Subsea Services Performance
Subsea services achieved one of the highest quarterly inbound levels ever. Subsea services revenue is expected to grow to approximately $1.8 billion, aligning with overall revenue growth.
Strategic Partnerships and Innovations
TechnipFMC entered into a new iEPCI collaboration with VÃ¥r Energi in Norway and developed innovative technologies like hybrid flexible pipe and all-electric systems for subsea applications.
Positive Outlook for Offshore Activity
TechnipFMC expects continued strength in Subsea inbound with robust offshore activity in regions like Guyana and Mozambique. The company is confident in achieving its $30 billion Subsea inbound target by the end of the year.
Negative Updates
North America Market Challenges
TechnipFMC exited unprofitable markets and product lines in North America, reducing its footprint by 50% over the last 3 years. The company closed and consolidated facilities throughout the region.
Restructuring and Impairment Charges
The quarter included restructuring, impairment, and other charges totaling $16 million, mostly related to business transformation initiatives in Surface Technologies.
Company Guidance
During the TechnipFMC Second Quarter 2025 Earnings Conference Call, the company provided comprehensive financial guidance, emphasizing its robust performance and optimistic outlook. Total company revenue for the quarter was reported at $2.5 billion, with adjusted EBITDA reaching $509 million, translating to a margin of 20.1% after excluding foreign exchange impacts. The company generated $261 million in free cash flow, distributing $271 million to shareholders through dividends and share buybacks. TechnipFMC's Subsea inbound orders for the quarter totaled $2.6 billion, with expectations to achieve over $10 billion for the year. The company ended the period with a total backlog of $16.6 billion, demonstrating a 5% sequential increase. For the third quarter, Subsea revenue is expected to grow by low to mid-single digits sequentially with a stable adjusted EBITDA margin, while Surface Technologies is anticipated to see a low single-digit revenue increase and an adjusted EBITDA margin of approximately 16%. For the full year, the company expects adjusted EBITDA to reach $1.8 billion, an increase of 30% compared to the prior year, with free cash flow projected near the top end of the $1 billion to $1.15 billion guidance 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
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.85
Very Positive
Balance Sheet
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.78
Positive
Cash Flow
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.88
Very Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 9.48B | 9.08B | 7.82B | 6.70B | 6.40B | 6.53B |
| Gross Profit | 2.76B | 1.72B | 1.27B | 197.30M | 33.90M | 694.80M |
| EBITDA | 1.38B | 1.41B | 706.60M | 567.90M | 466.50M | -3.02B |
| Net Income | 910.80M | 842.90M | 56.20M | -36.50M | 87.00M | -3.52B |
Balance Sheet | ||||||
| Total Assets | 10.08B | 9.87B | 9.66B | 9.44B | 10.02B | 19.69B |
| Cash, Cash Equivalents and Short-Term Investments | 950.00M | 1.17B | 962.10M | 1.06B | 1.64B | 1.27B |
| Total Debt | 1.60B | 1.79B | 1.97B | 1.37B | 2.00B | 4.32B |
| Total Liabilities | 6.79B | 6.73B | 6.48B | 6.17B | 6.60B | 15.48B |
| Stockholders Equity | 3.25B | 3.09B | 3.14B | 3.24B | 3.40B | 4.15B |
Cash Flow | ||||||
| Free Cash Flow | 1.32B | 679.40M | 467.80M | 194.20M | 589.60M | 400.80M |
| Operating Cash Flow | 1.64B | 961.00M | 693.00M | 352.10M | 781.30M | 656.90M |
| Investing Cash Flow | -303.70M | -75.80M | -125.60M | 162.20M | 817.30M | -180.60M |
| Financing Cash Flow | -1.11B | -648.00M | -656.50M | -796.70M | -5.07B | -1.08B |
TechnipFMC Technical Analysis
Positive
35.60
Price Trends
34.62
Positive
31.73
Positive
30.59
Positive
Market Momentum
0.26
Positive
54.55
Neutral
31.52
Neutral
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 35.6 is above the 20-day moving average (MA) of 35.26, above the 50-day MA of 34.62, and above the 200-day MA of 30.59, indicating a bullish trend. The MACD of 0.26 indicates Positive momentum. The RSI at 54.55 is Neutral, neither overbought nor oversold. The STOCH value of 31.52 is Neutral, 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 (56)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
82 Outperform | $14.63B | 16.86 | 29.27% | 0.56% | 12.15% | 91.88% | |
77 Outperform | $19.39B | 9.74 | 12.06% | 6.12% | -12.06% | -21.43% | |
75 Outperform | $17.88B | 9.81 | 18.16% | 3.19% | -4.08% | -29.26% | |
75 Outperform | $49.44B | 11.28 | 19.78% | 3.37% | 0.94% | -4.63% | |
74 Outperform | $41.91B | 13.91 | 18.32% | 2.08% | 2.13% | 54.69% | |
71 Outperform | $4.51B | 9.98 | 7.31% | 4.14% | -1.21% | -54.44% | |
56 Neutral | C$4.17B | 2.02 | 16.25% | 5.63% | 10.63% | -51.09% |
* Energy Sector Average
Performance Comparison
FTI
TechnipFMC
35.60
8.80
32.84%
BKR
Baker Hughes Company
43.25
9.07
26.54%
HAL
Halliburton
21.35
-9.21
-30.14%
NOV
NOV
12.33
-4.94
-28.60%
SLB
Schlumberger
33.22
-10.32
-23.70%
TS
Tenaris SA
36.05
9.16
34.06%
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.