TechnipFMC Exits 2022 With Over $9 Billion Backlog, and Inbound Orders Continue To Increase

TechnipFMC posted a solid fourth quarter, with total revenue up 11% year over year and slightly down 2% sequentially. Adjusted EBITDA margin jumped nearly 200 basis points to 7.1% in the fourth quarter, continuing its steady reversion to prepandemic levels (averaging about 8%) amid strengthening demand for offshore oilfield services. We foresee continued margin expansion over the next several quarters as offshore activity around the world continues to gain momentum. We’ll incorporate the firm’s full financial and operating results shortly, but after this first look, we maintain our $15 fair value estimate. Our no-moat rating and stable moat trend are unchanged following results.