Back to top

Image: Bigstock

TechnipFMC's Q1 Earnings & Revenues Miss Estimates, Rise Y/Y

Read MoreHide Full Article

TechnipFMC plc (FTI - Free Report) reported first-quarter 2025 adjusted earnings of 33 cents per share, which missed the Zacks Consensus Estimate of 36 cents, primarily due to a 4.8% year-over-year increase in costs and expenses. However, the bottom line increased from the year-ago quarter’s reported profit of 22 cents, driven by improved performance in the Subsea segment. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.) 

Houston, TX-based oil and gas equipment and services provider’s revenues of $2.2 billion missed the Zacks Consensus Estimate by 1.1%. However, the top line increased from the year-ago quarter’s reported figure of $2 billion.

Adjusted EBITDA for the Subsea unit totaled $334.9 million, which beat the Zacks Consensus Estimate of $331 million. The same for the Surface Technologies unit was $46.6 million, which also beat the consensus mark of $41.94 million.

FTI’s first-quarter inbound orders increased 11.3% from the year-ago period’s level to $3.1 billion.  The company’s backlog rose at the same time. TechnipFMC’s order backlog totaled $15.8 billion as of March-end, up 17.2% from the year-ago quarter.

On April 22, 2025, FTI’s board of directors declared a quarterly cash dividend of 5 cents per share to its common shareholders of record as of May 20. The payout, unchanged from the previous quarter, will be made on June 4, 2025.

During the quarter, the company repurchased its 8.9 million common shares for a total of $250.1 million. Including a dividend payment of $21 million, total shareholder returns for the quarter amounted to $271.1 million.

 

TechnipFMC plc Price, Consensus and EPS Surprise

TechnipFMC plc Price, Consensus and EPS Surprise

TechnipFMC plc price-consensus-eps-surprise-chart | TechnipFMC plc Quote
 

Segmental Analysis of TechnipFMC

Subsea: Revenues from this segment totaled $1.9 billion, up 11.6% from the year-ago quarter’s $1.7 billion. Revenue growth was driven by higher project activity in Asia Pacific and Brazil. However, the figure missed our projection by 5.3%.

Adjusted EBITDA was up about 38.2% from the year-ago quarter’s level. The performance of this segment improved due to better earnings mix from the backlog and strong project execution in the quarter.

Additionally, FTI’s inbound orders increased 38.2% year over year to $2.8 billion. The backlog rose 20% at the same time.

Surface Technologies: This segment recorded revenues of $297.4 million, down 3.2% year over year. However, the metric beat our projection of $288.4 million.

The unit's adjusted EBITDA increased 12.6%, primarily due to higher project activity in North America. The segment’s inbound orders dropped 18.1% year over year. The quarter-end backlog also decreased 16.1% at the same time.

FTI’s Financials

TechnipFMC reported $2 billion in costs and expenses, up 4.8% from the year-ago quarter’s $1.9 billion.

In the reported quarter, the company invested $61.8 million in capital programs and generated $441.7 million in cash flow from operations, while free cash flow increased to $379.9 million.

As of March 31, FTI had cash and cash equivalents worth $1.2 billion and long-term debt of $410.8 million, with a debt-to-capitalization of 11.8%.

TechnipFMC’s 2025 Outlook

The company expects revenues from the Subsea unit in the range of $8.4-$8.8 billion for 2025. It also anticipates revenues between $1.2 billion and $1.35 billion for the Surface Technologies unit.

The adjusted EBITDA margin is anticipated in the range of 19-20% for the Subsea segment and between 15% and 16% for the Surface Technologies segment.

The Zacks Rank #3 (Hold) company now expects free cash flow in the band of $1 billion to $1.15 billion, an increase from the prior guided range of $850 million to $1 billion. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

It also expects annual capital expenditure of approximately $340 million and net interest expense in the band of $45-$55 million for the year. FTI anticipates net corporate expenses in the range of $115-$125 million.
 

Important Earnings at a Glance

While we have discussed FTI’s first-quarter results in detail, let us take a look at three other key reports in this space.

Oil and gas equipment and services provider, Liberty Energy (LBRT - Free Report) , reported a first-quarter 2025 adjusted net income of 4 cents per share, which marginally beat the Zacks Consensus Estimate of 3 cents. Liberty's outperformance indicated operational efficiencies as well as increased utilization of frac and wireline fleets. However, the bottom line underperformed the year-ago quarter’s reported figure of 48 cents due to a decline in service activity.

As of March 31, Liberty had approximately $24.1 million in cash and cash equivalents. The pressure pumper’s long-term debt of $210 million represented a debt-to-capitalization of 9.6%.

Another oil and gas equipment and services provider, Halliburton Company (HAL - Free Report) , posted first-quarter 2025 adjusted net income per share of 60 cents. The figure met with the Zacks Consensus Estimate but was down from the year-ago quarter’s profit of 76 cents (adjusted). The numbers reflect softer activity in the region of North America, partly offset by international growth. Meanwhile, Halliburton’s revenues of $5.4 billion decreased 6.7% year over year but beat the Zacks Consensus Estimate of $5.3 billion.

As of March 31, 2025, Halliburton had approximately $1.8 billion in cash/cash equivalents and $7.2 billion in long-term debt, representing a debt-to-capitalization ratio of 40.8.

Houston, TX-based oil and gas equipment and services provider, Baker Hughes (BKR - Free Report) ,reported first-quarter 2025 adjusted earnings of 51 cents per share, which beat the Zacks Consensus Estimate of 47 cents. The bottom line also improved from the year-ago level of 43 cents.

As of March 31, 2025, Baker had cash and cash equivalents of $3,277 million. Baker had a long-term debt of $5,969 million at the end of the reported quarter, with a debt-to-capitalization of 25.9%.


Zacks' 7 Best Strong Buy Stocks (New Research Report)


Valued at $99, click below to receive our just-released report
predicting the 7 stocks that will soar highest in the coming month.


Click Here, It's Really Free

Published in