TechnipFMC Earnings: One-Time Tax Benefit Drives Beat While 2025 Estimates Are Revised Upward

No-moat TechnipFMC blew past PitchBook consensus estimates with adjusted earnings per share at $0.64 versus median expectations of $0.39. Net margins were up 370 basis points from the previous quarter, driven by a noncash tax benefit that eliminated its tax obligations for the quarter. Additionally, management upwardly revised its 2025 guidance. Full-year revenue expectations increased $500 million to $8.5 billion, while guidance now implies EBITDA margins will rise to slightly over 19%, up from 18%. We think the updated guidance is achievable, and we have increased our forecast accordingly. As a result, we are increasing our fair value estimate to $25.50 from $25. At current prices, we view shares as fairly valued.