Shares of the global energy technologies company, TechnipFMC plc (NYSE: FTI ), have climbed 55.92% (YoY) and have gained 31.55% since my last article on the company last year. FTI released its Q2 2025 results, whichI have more than five years experience in the financial industry. I focus mostly in the commodities, foreign exchange and cryptocurrencies. I also write on general issues like equity research, economics and geopolitics.Fellow contributor Crispus Nyaga is my colleague.Analyst’s Disclosure:I/we hav ...

Shares of the global energy technologies company, TechnipFMC plc (NYSE: FTI ), have climbed 55.92% (YoY) and have gained 31.55% since my last article on the company last year. FTI released its Q2 2025 results, whichI have more than five years experience in the financial industry. I focus mostly in the commodities, foreign exchange and cryptocurrencies. I also write on general issues like equity research, economics and geopolitics.Fellow contributor Crispus Nyaga is my colleague.Analyst’s Disclosure:I/we hav ...

Index Changes - United Parks & Resorts Inc. (NYSE: PRKS) will be added to the S&P SmallCap 600, replacing Foot Locker Inc. (NYSE: FL), effective September 8, 2025 [1][4] - TechnipFMC plc (NYSE: FTI) will be added to the S&P MidCap 400, replacing Skechers USA Inc. (NYSE: SKX), effective September 12, 2025 [1][4] Acquisition Details - Dick's Sporting Goods Inc. (NYSE: DKS) is acquiring Foot Locker, with the deal expected to be completed soon, pending final closing conditions [4] - 3G Capital is acquiring Skechers USA, with the deal also expected to be completed soon, pending final conditions [4]

TechnipFMC (FTI) FY 2025 Conference September 02, 2025 01:15 PM ET Company ParticipantsJ. David Anderson - Managing DirectorDouglas Pferdehirt - CEO & ChairJ. David AndersonOver the last several years, TechnipFMC has firmly established itself as the premier offshore equipment company in the industry, having reshaped the subsea market with its integrated offering and iEPCI approach has led to commanding market share in recent years. With its impressive backlog, FTI is in tremendous visibility along with stru ...

Financial Data and Key Metrics Changes - TechnipFMC has established itself as a leading offshore equipment company with a strong backlog and higher margins through its Subsea two point zero offering [1] - The company is on track to book $30 billion in orders over the last three years and expects another $10 billion next year, indicating a growing backlog that will convert to revenue and earnings [8][7] Business Line Data and Key Metrics Changes - The Subsea business has seen an expansion in its customer base, moving from 10-12 customers to a broader range due to increased offshore investment and TechnipFMC's integrated offerings [9] - Subsea two point zero currently represents 70% of the order book, with expectations for this to grow as it provides predictability and efficiency in project delivery [24][30] Market Data and Key Metrics Changes - The company has expanded its geographical reach, moving from three to four operational pockets globally to a more extensive network, enhancing its market presence [9] - The shift in capital flows towards offshore projects has been noted, with clients showing increased confidence in investing offshore due to TechnipFMC's ability to deliver projects on time and within budget [14][23] Company Strategy and Development Direction - TechnipFMC's strategy focuses on reducing cycle times and improving project delivery through its Subsea two point zero and integrated offerings, which enhance predictability and performance [22][46] - The company is competing for capital flows rather than just against other companies, emphasizing the importance of delivering better project economics and execution [20][47] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the sustainability of the offshore resurgence and the company's ability to grow in orders, revenue, and earnings [6][7] - The management acknowledged the industry's past inefficiencies and emphasized the importance of improved execution and delivery standards in the current market [39][42] Other Important Information - The Surface Technologies business is primarily driven by the Middle East, with significant contributions from Saudi Arabia and the UAE, and is expected to see growth in 2026 [56][61] - TechnipFMC has built new facilities in Saudi Arabia and the UAE to meet local content requirements and support international operations [58][59] Q&A Session Summary Question: How is the order book evolving? - The order book has expanded with more customers and projects, reflecting a growing interest in offshore investments and TechnipFMC's integrated offerings [8][9] Question: What is the mix of orders between greenfield and brownfield projects? - The company has seen a surprising increase in greenfield projects, while brownfield investments continue to be significant due to their high returns [15] Question: How does TechnipFMC differentiate itself from competitors? - The company focuses on capital flows and project execution rather than just competing with other companies, emphasizing the quality of offshore reservoirs and the importance of reducing cycle times [20][47] Question: What is the expected growth for the Surface Technologies business? - The international Surface Technologies business is shaping up nicely, with a focus on project-based work in the Middle East [61][63]

Financial Data and Key Metrics Changes - TechnipFMC has established itself as a leading offshore equipment company with a strong backlog and visibility, indicating structurally higher margins through its Subsea 2.0 offering [1][4] - The company is on track to book $30 billion in orders over the last three years, with an expectation of another $10 billion in the next year [6][10] Business Line Data and Key Metrics Changes - The Subsea 2.0 offering currently represents about 70% of the order book but only 30% of revenue, indicating potential for revenue growth as the backlog converts [21][24] - The company has seen an expansion in its customer base and geographical reach, moving from 3-4 operational pockets globally to a much broader presence [7][8] Market Data and Key Metrics Changes - The offshore market is experiencing a resurgence, with increased confidence from clients leading to a higher volume of investments in offshore projects [4][11] - Greenfield projects have surprised the company, making up about 50% of inbound orders in 2024, indicating a shift in capital flows towards offshore investments [10][11] Company Strategy and Development Direction - The company focuses on reducing cycle times and improving project delivery predictability, which is critical for attracting capital investments [18][39] - TechnipFMC's strategy emphasizes the importance of technology and execution, with ongoing investments in robotics and other innovations to enhance manufacturing efficiency [41][42] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the sustainability of the offshore market resurgence and the company's ability to grow in all areas, which is not typical in the industry [4][5] - The company acknowledges the need for continuous improvement in project delivery standards compared to previous cycles, which were characterized by inefficiencies [34][35] Other Important Information - The Surface Technologies business represents a smaller segment, with significant revenue coming from international markets, particularly the Middle East [45][46] - New facilities in Saudi Arabia and the UAE are expected to enhance the company's operational capabilities and meet local content requirements [48] Q&A Session Summary Question: How is the order book evolving? - The order book has expanded with more customers and projects, reflecting a growing interest in offshore investments [6][10] Question: What is the mix of orders expected in the coming years? - The mix will include a combination of greenfield and brownfield projects, with a notable increase in brownfield investments due to better returns [11][12] Question: How does Subsea 2.0 impact revenue? - Subsea 2.0 is expected to drive revenue growth as it becomes a larger portion of the order book, with increased manufacturing efficiency [21][24] Question: What are the key markets for Surface Technologies? - The key markets include the Middle East, particularly Saudi Arabia and the UAE, which are technically challenging but align with the company's strengths [45][46] Question: What is the outlook for international business growth? - The international business is shaping up positively, with expectations for growth in 2026 [50]

Core Insights - TechnipFMC plc (FTI) reported second-quarter 2025 adjusted earnings of 68 cents per share, exceeding the Zacks Consensus Estimate of 57 cents and up from 43 cents in the prior year, driven by strong performance in the Subsea segment [1][9] - The company's revenues reached $2.5 billion, surpassing the Zacks Consensus Estimate by 2.2% and increasing from $2.3 billion in the year-ago quarter [2][9] - FTI's order backlog rose to $16.6 billion, a 19.8% increase year-over-year, despite a decline in inbound orders by 8.4% to $3.1 billion [3][9] Financial Performance - Adjusted EBITDA for the Subsea unit was $482.9 million, exceeding the consensus estimate of $453 million, while the Surface Technologies unit reported adjusted EBITDA of $52.3 million, also above the consensus of $48.6 million [2] - Total costs and expenses for the quarter were $2.1 billion, a 6.3% increase from the previous year's $2 billion [8] - The company generated $344.2 million in cash flow from operations and reported free cash flow of $260.6 million [8] Segment Analysis - Subsea segment revenues totaled $2.2 billion, a 10.3% increase from $2 billion in the prior year, driven by increased project activity in the North Sea and Brazil [5][6] - Adjusted EBITDA in the Subsea segment rose by approximately 35.5% year-over-year, supported by strong execution and higher project activity [6] - Surface Technologies segment revenues were $318.4 million, up 0.6% year-over-year, with adjusted EBITDA increasing by 13.7% due to higher activity in the Middle East [7] Shareholder Returns - The board declared a quarterly cash dividend of 5 cents per share, unchanged from the previous quarter, to be paid on September 3, 2025 [3] - The company repurchased 8.3 million common shares for a total of $250.1 million, resulting in total shareholder returns of $270.7 million for the quarter [4] 2025 Outlook - FTI expects Subsea unit revenues between $8.4 billion and $8.8 billion for 2025, and Surface Technologies revenues between $1.2 billion and $1.35 billion [10] - The anticipated adjusted EBITDA margin for the Subsea segment is 19-20%, while for Surface Technologies it is expected to be 15-16% [10] - Free cash flow is projected to be in the range of $1 billion to $1.15 billion for 2025 [10]

Core Insights - FTI Consulting has appointed Sabine Bennett as a Senior Managing Director in the Australian Healthcare & Human Services practice [1] - Ms. Bennett brings over 16 years of experience in technology-enabled transformation programs for health, aged care, and life sciences clients [2] - The Healthcare & Human Services practice focuses on sector reform, digital transformation, and productivity, having launched in January 2025 [3] Company Overview - FTI Consulting is a global expert firm with over 7,900 employees across 32 countries as of June 30, 2025 [5] - The company generated $3.70 billion in revenues during fiscal year 2024 [5] Industry Focus - The practice aims to support clients in creating digital solutions that enhance patient and clinician experiences [2][3] - Ms. Bennett emphasizes the ambition of Australian organizations in Digital and AI, highlighting the challenges in execution [4]

Core Insights - FTI Consulting has appointed Elizabeth (Liz) Goodman as a Senior Managing Director in the Healthcare and Life Sciences practice within its Strategic Communications segment [1][4] Company Overview - FTI Consulting, Inc. is a leading global expert firm specializing in crisis and transformation, with over 7,900 employees across 32 countries and territories as of June 30, 2025 [6] - The company generated $3.70 billion in revenues during the fiscal year 2024 [6] Appointment Details - Dr. Goodman brings over 30 years of experience in healthcare, health insurance, and health law and policy, focusing on Medicare, Medicaid, and long-term services [2] - In her new role, Dr. Goodman will assist healthcare and life sciences payers and providers in navigating complex business environments, advising C-suite executives on brand equity, stakeholder management, and risk mitigation [3][5] - Her previous roles include Chief Legal and Public Affairs Officer at Commonwealth Care Alliance and Executive Vice President of Government Affairs and Innovation at America's Health Insurance Plans [4] Strategic Goals - Dr. Goodman aims to address regulatory shifts, evolving care models, and changing expectations in the healthcare sector, collaborating with FTI Consulting's experts to develop strategies for business-critical challenges [5] - The hiring of Dr. Goodman is part of the ongoing expansion of the Healthcare and Life Sciences practice at FTI Consulting, following several recent appointments in public affairs and corporate reputation [5]

Core Insights - FTI Consulting reported Q2 2025 earnings that exceeded Wall Street expectations despite a mild decline in revenue and earnings per share compared to the previous year [1][2] - The company generated GAAP revenue of $943.7 million, surpassing estimates by $21.7 million, and GAAP earnings per share of $2.13, exceeding the $2.10 estimate [1][2] - The performance varied significantly across different business segments, with some experiencing growth while others faced challenges due to macroeconomic factors [1] Financial Performance - Q2 2025 GAAP revenue was $943.7 million, a decrease of 0.6% year-over-year from $949.2 million in Q2 2024 [2] - GAAP earnings per share fell by 9.0% from $2.34 in Q2 2024 to $2.13 in Q2 2025 [2] - Adjusted EBITDA decreased by 3.7% to $111.6 million from $115.9 million in the prior year [2] - Net income dropped 14.5% to $71.7 million from $83.9 million in Q2 2024 [2] - Operating margin was 10.5%, down from 11.0% in the previous year [2] Business Segments Overview - Corporate Finance & Restructuring segment reported $379.2 million in GAAP revenue, up 9.0% year-over-year, driven by increased demand for restructuring services [5] - Forensic and Litigation Consulting generated $186.5 million in GAAP revenue, a 10.0% increase, benefiting from higher bill rates [6] - Economic Consulting saw a significant decline in GAAP revenue to $191.7 million, down 17.0% due to reduced deal volume [7] - Technology unit's revenue fell 27.9% to $83.6 million, impacted by lower demand for merger-related projects [8] - Strategic Communications achieved strong growth with revenue up 20.8% to $102.7 million, driven by increased demand for reputation management services [10] Cash Flow and Balance Sheet - Cash generated from operations decreased to $55.7 million from $135.2 million in Q2 2024, primarily due to higher forgivable loan issuances and increased compensation payments [11] - Net debt rose to $317.2 million from a net cash position of $166.4 million a year earlier [11] - Total liabilities increased to $1.59 billion, reflecting higher long-term debt and commitments to retain talent [12] Future Guidance - Management updated FY2025 revenue guidance to a range of $3.66 billion to $3.76 billion, indicating flat growth compared to FY2024 [13] - Full-year GAAP earnings per share is projected between $7.24 and $7.84, with adjusted EPS forecasted between $7.80 and $8.40 [13] - The company highlighted potential declines in adjusted EPS for the first time in a decade due to ongoing weakness in certain segments [13]