TechnipFMC — Third Quarter 2026 Earnings Summary

Financial Performance:

• Total company revenue was $2,895.8 million, representing a 9.4% year-over-year increase and a 4.8% sequential increase from the second quarter.
• Net income attributable to TechnipFMC was $418.4 million ($1.05 per diluted share), a 35.1% year-over-year increase and a 15.4% sequential increase.
• Adjusted net income was $418.8 million ($1.05 per diluted share), up 34.2% year-over-year and 14.1% sequentially.
• Adjusted EBITDA was $627.8 million, a 21.0% year-over-year increase and a 7.9% sequential increase; adjusted EBITDA margin was 21.7% (up 210 bps year-over-year).
• Excluding an $8.6 million foreign exchange loss, adjusted EBITDA was $636.4 million.
• Cash flow from operations was $530.7 million; capital expenditures were $61.0 million, resulting in free cash flow of $469.7 million.
• Total inbound orders were $2,319.5 million, down 12.4% year-over-year and 14.9% sequentially.
• Total backlog stood at $16,065.8 million, down 4.4% year-over-year and 2.3% sequentially.
• Corporate expense was $28.8 million; net interest expense was $3.6 million; provision for income taxes was $104.3 million.
• The company ended the period with $1,049.3 million in cash and cash equivalents and net cash of $645.3 million.

Guidance and Future Outlook:

• Subsea revenue guidance for 2026 was increased to a range of $9.6 billion to $9.8 billion (previously $9.2 billion to $9.6 billion).
• Subsea revenue guidance for 2027 is a range of $10.0 billion to $10.4 billion.
• Subsea adjusted EBITDA margin guidance for 2027 is a range of 22.5% to 24.0%.
• Free cash flow guidance for 2026 was increased to a range of $1.45 billion to $1.55 billion (previously $1.3 billion to $1.45 billion).
• Effective tax rate guidance for 2026 was lowered to a range of 25% to 27% (previously 27% to 31%).
• Corporate expense guidance for 2026 is $115 million to $125 million.
• Net interest expense guidance for 2026 is $10 million to $20 million.
• Capital expenditure guidance for 2026 is approximately $340 million.
• Subsea adjusted EBITDA margin guidance for 2026 remains 21% to 22%.
• Surface Technologies revenue guidance for 2026 is $1.15 billion to $1.3 billion.
• Surface Technologies adjusted EBITDA margin guidance for 2026 is 16.5% to 18%.
• Anticipated Subsea inbound orders over the next five quarters (including 2027 expectations) are at least $14.5 billion.
• The Subsea Opportunities List increased for the ninth consecutive quarter to $32 billion (midpoint of project values).

Business Segments and Product Lines:

• Subsea:
  • Revenue was $2,600.0 million, up 12.1% year-over-year and 4.5% sequentially.
  • Operating profit was $522.6 million, up 30.2% year-over-year and 7.4% sequentially; operating margin was 20.1%.
  • Adjusted EBITDA was $611.6 million, up 21.0% year-over-year and 6.0% sequentially; adjusted EBITDA margin was 23.5%.
  • Inbound orders were $2,051.5 million, down 13.9% year-over-year and 18.2% sequentially.
  • Backlog was $15,487.0 million, down 3.4% year-over-year and 2.2% sequentially.
  • Key awards included flexible pipe systems for Azule Energy (Angola), Petrobras (Brazil), and an iEPCI® contract for PETRONAS (Malaysia).
  • Delivered the first Subsea 2.0® tree for Chevron's Gorgon Stage 3 project and the 200th subsea tree for ExxonMobil in Guyana.
• Surface Technologies:
  • Revenue was $295.8 million, down 9.8% year-over-year but up 7.1% sequentially.
  • Operating profit was $41.4 million, up 12.5% year-over-year and 6.2% sequentially; operating margin was 14.0%.
  • Adjusted EBITDA was $53.3 million, down 0.9% year-over-year but up 6.6% sequentially; adjusted EBITDA margin was 18.0%.
  • Inbound orders were $268.0 million, up 0.5% year-over-year and 22.1% sequentially.
  • Backlog was $578.8 million, down 25.4% year-over-year and 4.6% sequentially.

Market and Competitive Landscape:

• Management cited a shift in operator capital toward prolific, high-quality offshore reservoirs and significantly improved project economics.
• Clients are increasingly adopting a portfolio approach to offshore development to optimize opportunities across their entire asset base.
• The Subsea Opportunities List has grown for nine consecutive quarters, indicating sustained deepwater activity.
• TechnipFMC secured a Strategic Collaboration Agreement with PETRONAS to serve as their deepwater development partner.
• A Memorandum of Understanding (MoU) was announced with bp to serve as the preferred strategic supplier of 20K systems for their Paleogene program in the Gulf of America.

Risks and Challenges:

• The press release notes standard forward-looking statement risks including fluctuations in oil and natural gas demand and prices, industry consolidation, and geopolitical conditions.
• Specific risks include fixed-price contract risks, delays in backlog execution, reliance on subcontractors, cyber-attacks, and regulatory changes regarding sustainability and climate change.
• Foreign exchange fluctuations resulted in an $8.6 million loss in the quarter.

Management Commentary and Tone:

• Chair and CEO Doug Pferdehirt described results as reflecting "strong operational performance" and "consistency in our execution."
• Management expressed optimism regarding the "durability of the subsea market" and the "robust pipeline of opportunities."
• Pferdehirt highlighted that the company is delivering projects on schedule, often ahead of schedule, which reinforces customer confidence in sanctioning offshore projects.
• Management noted that the quality of inbound orders is expected to improve with more Subsea 2.0®, iEPCI®, and direct awards anticipated in the year ahead.

Other Key Points:

• During the quarter, the Company repurchased 4.4 million ordinary shares for a total consideration of $320 million.
• Total shareholder distributions in the quarter were $339.5 million, including $19.5 million in dividends.
• The Subsea Opportunities List reached $32 billion, marking the ninth consecutive quarter of growth.
• TechnipFMC delivered the first Subsea 2.0® tree for Chevron's Gorgon Stage 3 project under a 20-year frame agreement.
• The company celebrated the manufacture and delivery of the 200th subsea tree for ExxonMobil in Guyana.