TechnipFMC Earnings: Strong Performance and Growing Backlog Delights Investors

After reassessing our valuation for no-moat TechnipFMC, we raise our fair value estimate to $28 from $25.50, primarily on a slightly higher 2025 margin and free cash flow assumptions since our last update. Even so, the revenue outlook for the subsea and surface technologies segments was as expected and we see no reason to change our long-term top-line forecast, which calls for mid-single-digit top-line growth over our explicit forecast. The company enjoyed a solid fourth-quarter 2024 result, buoyed by slightly better-than-expected revenue. Earnings were well in line with our expectations, though they materially exceeded what PitchBook consensus earmarked. We think the slight bump in the stock price on Feb. 27 relates to the earnings results and positive margin guide.