Company Reports

We will discontinue analyst coverage of TechnipFMC on or about Nov. 20, 2025.

TechnipFMC blew past our revenue expectations, but adjusted EBITDA (excluding currency impacts) was in line. Revenue increased over 4% sequentially to $2.65 billion, though EBITDA margin declined 90 basis points to 19.6%. Still, backlog grew a resounding 14% year on year and 1% sequentially.

TechnipFMC has built a reputation as a top provider for subsea equipment and services, a factor that’s crucial in a space where customers seek solutions for some of the most challenging engineering problems in the world. The firm’s 2021 spinoff of Technip Energies (representing the firm’s onshore E&C business) transformed TechnipFMC into a pure-play technology and service provider for the offshore market.

TechnipFMC’s $2.8 billion in second-quarter orders exceeded its $2.5 billion in revenue, implying a book/bill ratio of roughly 1.1 times. Sales rose 9% year on year, while adjusted EBITDA margin rose 500 basis points year on year to 20.5%. Shares jumped 12% on strong margin performance.

TechnipFMC has built a reputation as a top provider for subsea equipment and services, a factor that’s crucial in a space where customers seek solutions for some of the most challenging engineering problems in the world. The firm’s 2021 spinoff of Technip Energies (representing the firm’s onshore E&C business) transformed TechnipFMC into a pure-play technology and service provider for the offshore market.

TechnipFMC has built a reputation as a top provider for subsea equipment and services, a factor that’s crucial in a space where customers seek solutions for some of the most challenging engineering problems in the world. The firm’s 2021 spinoff of Technip Energies (representing the firm’s onshore E&C business) transformed TechnipFMC into a pure-play technology and service provider for the offshore market.

After reviewing our assumptions following a meeting with management, we raise our fair value estimate for TechnipFMC to $32 from $27. While our income-related assumptions largely remain the same, we previously modeled too high of a working capital outflow for 2026. The adjustment to our balance sheet account projections led to a fair value increase of $4 per share. The remaining $1 increase is due to the time value of money. We remain confident in TechnipFMC's long-term outlook as it has minimal exposure to US land operations, which are short-cycled and more sensitive to oil prices than subsea operations. These subsea operations also offer lower breakevens relative to developing operations on US land, which should allow it to outperform peers who expect a tough onshore business environment in 2025. Still, our conclusion remains directionally the same—we see the stock as overvalued.

TechnipFMC released its first-quarter earnings results with $3.1 billion of inbound orders exceeding its $2.2 billion in revenue, implying a book/bill ratio of roughly 1.4 times. Shares are up over 8% following the earnings release.

TechnipFMC has built a reputation as a top provider for subsea equipment and services, a factor that’s crucial in a space where customers seek solutions for some of the most challenging engineering problems in the world. The firm’s 2021 spinoff of Technip Energies (representing the firm’s onshore E&C business) transformed TechnipFMC into a pure-play technology and service provider for the offshore market.

TechnipFMC has built a reputation as a top provider for subsea equipment and services, a factor that’s crucial in a space where customers seek solutions for some of the most challenging engineering problems in the world. The firm’s 2021 spinoff of Technip Energies (representing the firm’s onshore E&C business) transformed TechnipFMC into a pure-play technology and service provider for the offshore market.

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.

TechnipFMC has built a reputation as a top provider for subsea equipment and services, a factor that’s crucial in a space where customers seek solutions for some of the most challenging engineering problems in the world. The firm’s 2021 spinoff of Technip Energies (representing the firm’s onshore E&C business) transformed TechnipFMC into a pure-play technology and service provider for the offshore market.

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.

TechnipFMC has cultivated a reputation as a top provider for subsea equipment and services, a factor that’s crucial in a space where customers seek solutions for some of the most challenging engineering problems in the world. The firm’s 2021 spinoff of Technip Energies (representing the firm’s onshore E&C business) transformed TechnipFMC into a pure-play technology and service provider for the offshore market.

Following our review of no-moat TechnipFMC, we lift our fair value estimate to $25 from $21, though we remain at the low end of FactSet consensus ranges. Our revised fair value estimate is now roughly in line with TechnipFMC’s stock price, but remains in 3-star territory. We also maintain our no-moat, Standard Capital Allocation, and Very High Uncertainty ratings for this large, pure-play offshore oilfield service provider.

TechnipFMC has cultivated a reputation as a top provider for subsea equipment and services, a factor that’s crucial in a space where customers seek solutions for some of the most challenging engineering problems in the world. The firm’s 2021 spinoff of Technip Energies (representing the firm’s onshore E&C business) transformed TechnipFMC into a pure-play technology and service provider for the offshore market.

No-moat TechnipFMC posted revenue and EPS that topped PitchBook estimates by 4% and 39%, respectively. This performance was driven by the Subsea segment, which benefited from a backlog order mix that was more profitable, generating higher margins. The result is that both topline revenue and EBITDA margin for the segment have been guided up for the full year, to $7.7 billion from $7.4 billion and 17% from 16%, respectively. After incorporating these results, we are leaving our fair value estimate unchanged at $21.

TechnipFMC has cultivated a reputation as a top provider for subsea equipment and services, a factor that’s crucial in a space where customers seek solutions for some of the most challenging engineering problems in the world. The firm’s 2021 spinoff of Technip Energies (representing the firm’s onshore E&C business) transformed TechnipFMC into a pure-play technology and service provider for the offshore market.

After incorporating TechnipFMC’s full financial and operating results for the first quarter, we’re raising our fair value estimate to $21 per share from $18. We maintain our no-moat rating and Very High Morningstar Uncertainty Rating.

TechnipFMC has cultivated a reputation as a top provider for subsea equipment and services, a factor that’s crucial in a space where customers seek solutions for some of the most challenging engineering problems in the world. The firm’s 2021 spinoff of Technip Energies (representing the firm’s onshore E&C business) transformed TechnipFMC into a pure-play technology and service provider for the offshore market.