Core Insights - FTI Consulting, Inc. (FCN) reported strong second-quarter 2025 results with earnings and revenues exceeding the Zacks Consensus Estimate, but the stock price remained flat post-earnings release [1][7] - Adjusted EPS was $2.13, beating estimates by 14% but down 9% year over year; total revenues were $943.7 million, surpassing estimates by 3.6% but declining 0.6% year over year [1][7] Segment Performance - Technology revenues decreased by 27.9% year over year to $83.6 million, primarily due to lower demand for M&A-related "second request" services [3] - Economic Consulting revenues fell 17% year over year to $191.7 million, driven by reduced demand for M&A-related antitrust services, partially offset by higher realized bill rates [3] - Corporate Finance & Restructuring revenues increased by 9% year over year to $379.2 million, attributed to higher demand for restructuring services and increased bill rates [4] - Strategic Communications revenues rose by 20.8% year over year to $102.7 million, mainly due to an increase in pass-through revenues and demand for corporate reputation services [5] - Forensic and Litigation Consulting revenues grew by 10% year over year to $186.5 million, supported by higher realized bill rates for risk and investigations services [8] Financial Metrics - Adjusted EBITDA was $111.6 million, down 3.7% year over year, with an adjusted EBITDA margin declining by 410 basis points to 8.7% [9] - The company ended the quarter with cash and cash equivalents of $152.8 million, down from $226.4 million in the prior quarter, and generated $55.7 million from operating activities [10] Guidance - FCN projects full-year 2025 revenues between $3.66 billion and $3.76 billion, with EPS expected to range from $7.24 to $7.84 [11] - The company anticipates additional capital expenditures of $29 million to $36 million for the remainder of 2025 [12]

[PART I - Financial Information](index=4&type=section&id=PART%20I%20-%20Financial%20Information) [Item 1. Financial Statements (Unaudited)](index=4&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) For the six months ended June 30, 2025, TechnipFMC reported a 9.2% increase in total revenue to $4.77 billion and a 19.8% rise in net income attributable to the company to $411.5 million compared to the prior year, with total assets growing to $10.08 billion and operating cash flow significantly improving to $785.9 million [Condensed Consolidated Statements of Income](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income) The company reported significant year-over-year growth in both the second quarter and first half of 2025, with total revenue for the six months ended June 30, 2025, increasing to $4.77 billion and net income attributable to TechnipFMC rising to $411.5 million Consolidated Income Statement Highlights (Unaudited) | Indicator (In millions, except EPS) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | YoY Change | | :--- | :--- | :--- | :--- | | **Total Revenue** | $4,768.3 | $4,367.6 | +9.2% | | **Income Before Income Taxes** | $605.1 | $456.1 | +32.7% | | **Net Income Attributable to TechnipFMC** | $411.5 | $343.6 | +19.8% | | **Diluted EPS** | $0.97 | $0.78 | +24.4% | Q2 Consolidated Income Statement Highlights (Unaudited) | Indicator (In millions, except EPS) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | YoY Change | | :--- | :--- | :--- | :--- | | **Total Revenue** | $2,534.7 | $2,325.6 | +9.0% | | **Income Before Income Taxes** | $374.8 | $245.5 | +52.7% | | **Net Income Attributable to TechnipFMC** | $269.5 | $186.5 | +44.5% | | **Diluted EPS** | $0.64 | $0.42 | +52.4% | [Condensed Consolidated Balance Sheets](index=6&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of June 30, 2025, total assets increased to **$10.08 billion** from **$9.87 billion** at year-end 2024, driven by higher contract assets and inventories, while total liabilities remained stable at **$6.79 billion** and total stockholders' equity grew to **$3.30 billion** Condensed Consolidated Balance Sheet Highlights (Unaudited) | Indicator (In millions) | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $950.0 | $1,157.7 | | **Total Assets** | **$10,081.9** | **$9,869.2** | | Total current liabilities | $5,091.0 | $4,864.8 | | Long-term debt | $425.1 | $607.3 | | **Total Liabilities** | **$6,785.3** | **$6,730.8** | | **Total Equity** | **$3,296.6** | **$3,138.4** | [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) For the first six months of 2025, cash provided by operating activities significantly increased to **$785.9 million** from **$104.2 million** in the prior-year period, though a sharp rise in cash used in financing activities, including **$500.2 million** in share repurchases, resulted in a net decrease in cash and cash equivalents of **$207.7 million** Six-Month Cash Flow Summary (Unaudited) | Cash Flow Activity (In millions) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Cash provided by operating activities | $785.9 | $104.2 | | Cash provided (required) by investing activities | $(140.8) | $87.1 | | Cash required by financing activities | $(880.8) | $(417.9) | | **Change in cash and cash equivalents** | **$(207.7)** | **$(243.5)** | - Key financing activities in H1 2025 included **$500.2 million** in share repurchases and **$241.6 million** in debt repayments, significantly increasing cash used in financing compared to H1 2024[20](index=20&type=chunk) [Notes to Condensed Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) The notes detail the company's financial performance, highlighting strong revenue growth in the Subsea segment, particularly in Latin America, with the order backlog growing to **$16.6 billion**, an improved debt profile due to repayments and investment-grade credit rating upgrades, and continued shareholder returns through dividends and an accelerated share repurchase program - The Subsea segment is the primary revenue driver, with Latin America being the largest geographical market, contributing **$1.48 billion** in the first six months of 2025[38](index=38&type=chunk) - Total order backlog stood at **$16.6 billion** as of June 30, 2025, with the Subsea segment accounting for **$15.8 billion**[48](index=48&type=chunk)[49](index=49&type=chunk) - The company's credit ratings were upgraded to investment grade by S&P and Fitch, and to 'Baa3' by Moody's, leading to the release of collateral on its credit facilities[80](index=80&type=chunk)[81](index=81&type=chunk) - In the first six months of 2025, the company repurchased **$500.2 million** of its ordinary shares and paid **$41.6 million** in dividends[84](index=84&type=chunk)[85](index=85&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=28&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management maintains a positive long-term outlook, driven by strong demand in offshore and Middle East markets and technological leadership in iEPCI™ and Subsea 2.0®, with consolidated revenue for H1 2025 growing 9.2% to **$4.8 billion** led by a 10.9% increase in the Subsea segment, and the company's order backlog growing to **$16.6 billion** providing strong future visibility and robust liquidity [Business Outlook](index=28&type=section&id=Business%20Outlook) The company has a positive long-term outlook for oil and natural gas, with offshore and Middle East markets being preferred for investment, and is positioned to leverage its technology, such as iEPCI™ and Subsea 2.0®, to capture growth in both conventional energy and new energy areas, with Subsea inbound orders expected to exceed **$10 billion** for the year - The company maintains a positive long-term outlook for oil and gas, anticipating growth in energy demand, with a focus on offshore and Middle East markets[124](index=124&type=chunk)[125](index=125&type=chunk) - Technological differentiation through iEPCI™ and Subsea 2.0® is a key strategy to improve project economics and reduce cycle times[128](index=128&type=chunk)[129](index=129&type=chunk) - The company is actively expanding into New Energy, focusing on greenhouse gas removal, offshore floating renewables, and hydrogen solutions[126](index=126&type=chunk)[127](index=127&type=chunk) - Subsea inbound orders are expected to exceed **$10 billion** in the current year, contributing to a three-year total of over **$30 billion** by the end of 2025[134](index=134&type=chunk) [Consolidated Results of Operations](index=30&type=section&id=Consolidated%20Results%20of%20Operations) For the second quarter of 2025, revenue increased 9.0% year-over-year to **$2.53 billion**, and net income grew 44.0% to **$268.3 million**, while for the first six months, revenue rose 9.2% to **$4.77 billion**, and net income increased 18.5% to **$411.6 million**, primarily driven by higher activity and favorable project mix in the Subsea segment Q2 2025 vs Q2 2024 Consolidated Results | Indicator (In millions) | Q2 2025 | Q2 2024 | Change (%) | | :--- | :--- | :--- | :--- | | **Revenue** | $2,534.7 | $2,325.6 | +9.0% | | **Gross Profit** | $593.3 | $500.9 | +18.4% | | **Net Income** | $268.3 | $186.3 | +44.0% | H1 2025 vs H1 2024 Consolidated Results | Indicator (In millions) | H1 2025 | H1 2024 | Change (%) | | :--- | :--- | :--- | :--- | | **Revenue** | $4,768.3 | $4,367.6 | +9.2% | | **Gross Profit** | $1,058.2 | $842.3 | +25.6% | | **Net Income** | $411.6 | $347.2 | +18.5% | - Revenue growth in both Q2 and H1 2025 was primarily driven by the Subsea segment's conversion of a higher backlog and increased activity in key regions like Brazil, Israel, Norway, and Nigeria[140](index=140&type=chunk)[150](index=150&type=chunk) [Segment Results of Operations](index=33&type=section&id=Segment%20Results%20of%20Operations) The Subsea segment demonstrated strong performance, with H1 2025 revenue increasing 10.9% to **$4.15 billion** and operating profit surging 44.6% to **$628.2 million**, while the Surface Technologies segment's H1 revenue decreased slightly by 1.3% to **$615.8 million**, and its operating profit fell to **$53.6 million** primarily due to a **$75.2 million** gain on an asset sale in the prior year and higher restructuring costs in the current year Subsea Segment Performance (H1 2025 vs H1 2024) | Indicator (In millions) | H1 2025 | H1 2024 | Change (%) | | :--- | :--- | :--- | :--- | | **Revenue** | $4,152.5 | $3,743.9 | +10.9% | | **Operating Profit** | $628.2 | $434.3 | +44.6% | | **Operating Margin** | 15.1% | 11.6% | +3.5 pts | Surface Technologies Segment Performance (H1 2025 vs H1 2024) | Indicator (In millions) | H1 2025 | H1 2024 | Change (%) | | :--- | :--- | :--- | :--- | | **Revenue** | $615.8 | $623.7 | -1.3% | | **Operating Profit** | $53.6 | $134.0 | -60.0% | | **Operating Margin** | 8.7% | 21.5% | -12.8 pts | - The significant decrease in Surface Technologies' operating profit was primarily due to a **$75.2 million** gain on the sale of the Measurement Solutions business in Q1 2024 and **$16.4 million** in restructuring costs in H1 2025[169](index=169&type=chunk) [Inbound Orders and Order Backlog](index=35&type=section&id=Inbound%20Orders%20and%20Order%20Backlog) Total inbound orders for the first six months of 2025 were strong at **$5.92 billion**, comparable to the prior year, and the total order backlog increased significantly to **$16.65 billion** as of June 30, 2025, up from **$14.38 billion** at the end of 2024, driven by the Subsea segment whose backlog rose by **$2.3 billion** to **$15.81 billion** Inbound Orders (In millions) | Segment | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Subsea | $5,338.6 | $5,241.8 | | Surface Technologies | $581.5 | $624.8 | | **Total** | **$5,920.1** | **$5,866.6** | Order Backlog (In millions) | Segment | June 30, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | Subsea | $15,810.0 | $13,518.1 | | Surface Technologies | $835.9 | $858.2 | | **Total** | **$16,645.9** | **$14,376.3** | [Liquidity and Capital Resources](index=36&type=section&id=Liquidity%20and%20Capital%20Resources) The company's financial position remains strong, with net cash of **$253.7 million** at the end of Q2 2025, robust operating cash flow of **$785.9 million** for the first half, ample liquidity with **$1.25 billion** available under its revolving credit facility, and key capital allocation activities including **$500.2 million** in share repurchases and **$41.6 million** in dividends during the first six months of 2025, further enhanced by recent investment-grade credit rating upgrades Net Cash Reconciliation (In millions) | Component | June 30, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $950.0 | $1,157.7 | | Total Debt | $(696.3) | $(885.2) | | **Net Cash** | **$253.7** | **$272.5** | - The company received investment-grade credit rating upgrades from S&P ('BBB-') and Fitch ('BBB-'), and an upgrade from Moody's ('Baa3'), which resulted in the release of collateral securing its credit agreements[184](index=184&type=chunk)[185](index=185&type=chunk)[186](index=186&type=chunk) - The company repurchased **$500.2 million** of ordinary shares in H1 2025 and has **$594.4 million** remaining under its current authorization[189](index=189&type=chunk) - A quarterly cash dividend of **$0.05 per share** was declared, continuing the company's commitment to shareholder returns[187](index=187&type=chunk)[188](index=188&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=38&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company states that its exposure to market risk has not materially changed since the disclosures made in its Annual Report on Form 10-K for the year ended December 31, 2024 - There have been no material changes in the company's market risk exposure since December 31, 2024[195](index=195&type=chunk) [Item 4. Controls and Procedures](index=38&type=section&id=Item%204.%20Controls%20and%20Procedures) Based on an evaluation as of June 30, 2025, the CEO and CFO concluded that the company's disclosure controls and procedures were effective, with no material changes in internal control over financial reporting during the quarter - The CEO and CFO concluded that as of June 30, 2025, the company's disclosure controls and procedures were effective[196](index=196&type=chunk) - No changes occurred in internal control over financial reporting during Q2 2025 that have materially affected, or are reasonably likely to materially affect, these controls[197](index=197&type=chunk) [PART II - Other Information](index=39&type=section&id=PART%20II%20-%20Other%20Information) [Item 1. Legal Proceedings](index=39&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in various legal actions in the ordinary course of business but does not anticipate that their ultimate resolution will have a material adverse effect on its financial condition, results of operations, or cash flows - Management believes that the most probable outcome of pending legal matters will not have a material adverse effect on the company's financial position[198](index=198&type=chunk) [Item 1A. Risk Factors](index=39&type=section&id=Item%201A.%20Risk%20Factors) There have been no material changes or updates to the risk factors previously disclosed in the company's Annual Report on Form 10-K for the year ended December 31, 2024 - No material changes to the company's risk factors have occurred since the filing of the 2024 Annual Report on Form 10-K[199](index=199&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=39&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) During the second quarter of 2025, the company repurchased a total of **8,275,628** ordinary shares for **$250.1 million** at an average price of **$30.21 per share** as part of its publicly announced share repurchase program Issuer Purchases of Equity Securities (Q2 2025) | Period (2025) | Total Shares Purchased | Average Price Paid per Share | | :--- | :--- | :--- | | April | 2,825,600 | $28.31 | | May | 3,988,600 | $30.08 | | June | 1,461,428 | $34.25 | | **Total** | **8,275,628** | **$30.21** | [Item 5. Other Information](index=40&type=section&id=Item%205.%20Other%20Information) During the second quarter of 2025, several of the company's executive officers, including the CEO and CFO, adopted Rule 10b5-1 trading arrangements for the future sale and gifting of company shares - Key executives, including CEO Douglas J. Pferdehirt and CFO Alf Melin, adopted Rule 10b5-1 trading plans on June 23, 2025, for future transactions in company stock[205](index=205&type=chunk)[206](index=206&type=chunk)

Financial Data and Key Metrics Changes - Total company revenue for the quarter was $2,500,000,000 with an Adjusted EBITDA of $509,000,000, reflecting a margin of 20.1% when excluding foreign exchange impacts [7][22] - Free cash flow generated was $261,000,000, with total shareholder distributions amounting to $271,000,000 through dividends and share buybacks [7][25] - The total company backlog increased by 5% sequentially to €16,600,000,000 [22] Business Line Data and Key Metrics Changes - In the Subsea segment, revenue was DKK2.2 billion, a 14% increase compared to the first quarter, driven by increased iEPCI project activity in the North Sea and higher installation activity in Brazil [22][23] - Surface Technologies revenue was €318,000,000, a 7% increase from the first quarter, primarily due to higher project and services activity in the Middle East [23][24] - Adjusted EBITDA for Subsea was €483,000,000, up 44% sequentially, with an EBITDA margin of 21.8% [23] Market Data and Key Metrics Changes - In North America, the company has reduced its footprint by 50% over the last three years while improving operating margins and increasing cash flow [10] - International markets now represent nearly two-thirds of Surface Technologies revenue, focusing on core markets with long-term production growth ambitions [10] - Subsea orders achieved $2,600,000,000 in the quarter, with a strong performance in Subsea Services, particularly in greenfield developments [11][12] Company Strategy and Development Direction - The company is focused on transforming its Subsea operations through new commercial models and configurable product offerings, enhancing customer relationships and technology leadership [8][20] - The strategy includes exiting unprofitable markets and consolidating facilities in North America while emphasizing operational efficiency [10] - The company aims to reach a three-year goal of $30,000,000,000 in Subsea inbound by the end of the year, supported by a robust order book [21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating current market challenges and highlighted the importance of strong customer relationships and technology innovation [20] - The outlook for offshore activity remains robust, with significant project sanctioning expected in regions like Guyana and Mozambique [17][19] - The company anticipates continued strength in Subsea revenue growth and an adjusted EBITDA margin similar to the current quarter [25][27] Other Important Information - The company has increased its full-year guidance for total company adjusted EBITDA to approximately $1,800,000,000, a 30% increase compared to the prior year [28] - The company has committed to distributing at least 70% of free cash flow to shareholders, with a current distribution rate of 85% [28] Q&A Session Summary Question: Breakdown of Subsea order book composition - Management confirmed that the strong performance in Subsea Services is a result of successful market strategies and direct awards, indicating a positive trend for the business [31][32] Question: Expectations for awards in the second half - Management indicated that both the Subsea opportunities list and direct awards are expected to contribute to future awards, with confidence in maintaining a robust level of direct awards [34][36] Question: Growth trajectory for services revenue - Management confirmed that services revenue is expected to grow in line with Subsea revenue, with a strong installed base contributing to long-term sustainability [42][44] Question: Insights on brownfield and greenfield project appetite - Management noted a strong commitment to advancing both greenfield and brownfield projects, with significant capital flowing into offshore markets [51][53] Question: Emerging areas for activity outside the Golden Triangle - Management highlighted the importance of regions like East Africa and the Eastern Mediterranean, along with ongoing projects in Brazil and Guyana [61][63] Question: Competitive dynamics in the Middle East - Management emphasized the unique challenges of the Middle East market and the company's focus on technology and high-end services to maintain a competitive edge [70][72] Question: Pricing dynamics in the market - Management clarified that over 80% of their business is direct awarded, which mitigates competitive pricing pressures, focusing instead on project returns and cycle time [88][91] Question: Potential of hybrid flexible pipe technology - Management expressed optimism about the hybrid flexible pipe's applicability across various markets, emphasizing its advantages in weight and installation costs [96][98]

Financial Data and Key Metrics Changes - Total company revenue for the quarter was $2,500,000,000 with an adjusted EBITDA of $509,000,000, reflecting a margin of 20.1% when excluding foreign exchange impacts [6][21] - Free cash flow generated was $261,000,000, with total shareholder distributions amounting to $271,000,000 through dividends and share buybacks [6][24] - The company increased its full-year guidance for total adjusted EBITDA by $40,000,000, now expecting approximately $1,800,000,000, a 30% increase compared to the previous year [26] Business Line Data and Key Metrics Changes - In the Subsea segment, revenue was DKK2.2 billion, a 14% increase from the previous quarter, driven by increased iEPCI project activity in the North Sea and higher installation activity in Brazil [22] - Surface Technologies reported revenue of €318,000,000, a 7% increase from the first quarter, primarily due to higher project and services activity in the Middle East [22][23] - Adjusted EBITDA for Subsea was €483,000,000, up 44% sequentially, while Surface Technologies saw an adjusted EBITDA of CHF52 million, a 12% increase [22][23] Market Data and Key Metrics Changes - Inbound orders for the quarter totaled €2,800,000,000, with Subsea orders accounting for €2,600,000,000, indicating a strong order book [21] - The total company backlog increased by 5% sequentially to €16,600,000,000 [21] - The company anticipates continued strength in offshore markets, particularly in Guyana and Mozambique, with a focus on both greenfield and brownfield opportunities [16][52] Company Strategy and Development Direction - The company is focused on transforming its Subsea and Surface Technologies segments through innovative commercial models and configurable product offerings [7][18] - A new iEPCI collaboration agreement with Var Energi was announced, aimed at optimizing subsea developments on the Norwegian continental shelf [11] - The company is committed to technology leadership, with ongoing developments in hybrid flexible pipe and all-electric technology to enhance project economics and operational efficiency [12][14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating current market challenges, emphasizing the importance of strong customer relationships and technology innovation [18][19] - The outlook for offshore activity remains robust, with expectations for continued project sanctioning through the end of the decade [20] - The company is optimistic about achieving its three-year goal of $30,000,000,000 in subsea inbound by the end of the year, supported by a healthy project pipeline [20] Other Important Information - The company has reduced its North America footprint by 50% over the last three years while improving operating margins and increasing cash flow [8] - Corporate expenses for the period were €27,000,000, with net interest expense at €14,000,000 and tax expense at €106,000,000 [23] Q&A Session Summary Question: Can you break down the composition of the strong Subsea order book this quarter? - Management confirmed that the strong performance in Subsea Services is a result of successful market strategies and direct awards, indicating a positive trend for the business [30][31] Question: How do you see orders shaping up for 2026? - Management indicated that another $10,000,000,000 in orders for 2026 is a reasonable assumption based on current trends [37] Question: Can you discuss the strong services revenue and its growth trajectory? - Management confirmed that the services revenue is expected to grow in line with Subsea revenue, with a significant installed base contributing to long-term sustainability [41][43] Question: What is the outlook for brownfield and greenfield projects? - Management noted a strong commitment to advancing both brownfield and greenfield projects, with significant capital flowing into offshore markets [52] Question: How does the competitive landscape in the Middle East affect the company? - Management emphasized that the Middle East market is complex and high-end, with a focus on technology leadership and maintaining a strong market structure [70][72] Question: What are the prospects for the hybrid flexible pipe technology? - Management highlighted that hybrid flexible pipe technology could be applicable in various markets, potentially increasing the total market for flexible pipe [94][96]

Group 1: Earnings Performance - FMC Technologies reported quarterly earnings of $0.68 per share, exceeding the Zacks Consensus Estimate of $0.57 per share, and up from $0.43 per share a year ago [1] - The earnings surprise for the quarter was +19.30%, while the previous quarter saw a surprise of -8.33% with actual earnings of $0.33 per share against an expectation of $0.36 [2] - Over the last four quarters, FMC Technologies has surpassed consensus EPS estimates three times [2] Group 2: Revenue Performance - The company posted revenues of $2.53 billion for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 2.19%, compared to $2.33 billion in the same quarter last year [3] - FMC Technologies has also topped consensus revenue estimates three times over the last four quarters [3] Group 3: Stock Performance and Outlook - FMC Technologies shares have increased approximately 16.1% since the beginning of the year, outperforming the S&P 500's gain of 8.1% [4] - The company's earnings outlook is crucial for investors, with current consensus EPS estimates at $0.61 for the coming quarter and $2.07 for the current fiscal year [5][8] - The Zacks Rank for FMC Technologies is currently 3 (Hold), indicating expected performance in line with the market in the near future [7] Group 4: Industry Context - The Oil and Gas - Field Services industry, to which FMC Technologies belongs, is currently ranked in the bottom 4% of over 250 Zacks industries, suggesting potential challenges ahead [9] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which could impact FMC Technologies' stock performance [6]

Financial Performance - Total Company revenue increased by 13% to $2.5 billion[11], driven by growth in both Subsea and Surface Technologies segments[11] - Total Company adjusted EBITDA was $509 million, excluding foreign exchange impacts[9, 11] - Free cash flow reached $261 million[9, 11] - Total shareholder distributions amounted to $271 million, including $250 million in share repurchases[11] - The company repaid 200 million euro of maturing debt, reducing gross debt to $696 million[11] Orders and Backlog - Total Company inbound orders were $2.8 billion, with Subsea orders at $2.6 billion, resulting in a book-to-bill ratio of 1.2x[8] - Subsea orders are expected to exceed $10 billion in 2025[8] - Total Company backlog increased sequentially to $16.6 billion, with Subsea backlog growing to $15.8 billion[8] Segment Results - Subsea revenue for Q2 2025 was $2.216 billion, a 14% increase QoQ and 10% increase YoY[10] - Subsea adjusted EBITDA was $483 million, with a margin of 21.8%[10] - Surface Technologies revenue for Q2 2025 was $318 million, a 7% increase QoQ and 1% increase YoY[10] - Surface Technologies adjusted EBITDA was $52 million, with a margin of 16.4%[10] Guidance - The company anticipates full-year 2025 revenue for Subsea to be in the range of $8.4 - $8.8 billion[19] and for Surface Technologies to be in the range of $1.2 - $1.35 billion[16] - The company expects full-year 2025 adjusted EBITDA margin for Subsea to be in the range of 19 - 20%[19] and for Surface Technologies to be in the range of 15 – 16%[16] - The company projects full-year 2025 free cash flow to be in the range of $1.0 - $1.15 billion[19]

Press Release TechnipFMC Announces Second-Quarter 2025 Results NEWCASTLE & HOUSTON, July 24, 2025 — TechnipFMC plc (NYSE: FTI) (the "Company" or "TechnipFMC") today reported second-quarter 2025 results. Summary Financial Results from Continuing Operations Reconciliation of U.S. GAAP to non-GAAP financial measures are provided in financial schedules. | | | Three Months Ended | | Change | | | --- | --- | --- | --- | --- | --- | | (In millions, except per share amounts) | Jun. 30, | Mar. 31, | Jun. 30, | | Yea ...

Core Viewpoint - Analysts expect FMC Technologies (FTI) to report quarterly earnings of $0.57 per share, reflecting a year-over-year increase of 32.6%, with revenues projected at $2.49 billion, up 6.9% from the previous year [1] Earnings Projections - The consensus EPS estimate has been revised downward by 0.4% in the last 30 days, indicating a reassessment by covering analysts [1][2] Revenue Estimates - Revenue from Surface Technologies is expected to reach $313.91 million, a decrease of 0.8% year-over-year [4] - Revenue from Subsea Technologies is projected at $2.17 billion, indicating an increase of 8% [4] - Revenue from Lease is estimated at $64.65 million, reflecting an increase of 8.3% [4] - Revenue from Product is expected to be $885.48 million, showing a growth of 2.9% [5] - Revenue from Service is projected at $1.53 billion, indicating a year-over-year increase of 9.1% [5] Order Backlog and Inbound Orders - Order Backlog for Subsea Technologies is expected to reach $15.25 billion, up from $12.93 billion year-over-year [6] - Total Order Backlog is projected at $16.10 billion, compared to $13.90 billion in the same quarter last year [6] - Order Backlog for Surface Technologies is estimated at $870.52 million, down from $972.90 million year-over-year [7] - Inbound Orders for Subsea Technologies are expected to be $2.49 billion, compared to $2.84 billion last year [5] - Inbound Orders for Surface Technologies are projected at $287.21 million, up from $254.20 million year-over-year [7] - Total Inbound Orders are estimated at $2.76 billion, down from $3.09 billion last year [7] Adjusted EBITDA - Adjusted EBITDA for Subsea is expected to reach $452.54 million, compared to $356.50 million in the previous year [8] Stock Performance - Shares of FMC Technologies have decreased by 5.7% over the past month, contrasting with a 5.9% increase in the Zacks S&P 500 composite [8]

Core Viewpoint - TechnipFMC plc (FTI) is expected to report second-quarter fiscal 2025 results on July 24, with earnings estimated at 57 cents per share and revenues of $2.49 billion, reflecting a year-over-year increase of 6.9% [1][8]. Group 1: Recent Performance - In the last reported quarter, FTI posted adjusted earnings of 33 cents per share, missing the Zacks Consensus Estimate of 36 cents, primarily due to a 4.8% year-over-year increase in costs and expenses [2]. - FTI's revenues for the last quarter were $2.2 billion, which also missed the Zacks Consensus Estimate by 1.1% [2]. - Over the trailing four quarters, FTI has beaten the Zacks Consensus Estimate three times, with an average surprise of 37.19% [2]. Group 2: Revenue and Cost Projections - The Zacks Consensus Estimate for second-quarter fiscal 2025 earnings has not changed in the past week, indicating a 32.56% year-over-year increase [3]. - The expected revenue for the second quarter is projected to be $2.49 billion, up from $2.33 billion in the year-ago quarter, driven by strong performance in the Subsea segment [4][8]. - The Subsea segment's revenues are anticipated to increase by 7.5% year-over-year, totaling $2.16 billion [5][8]. - Total costs and expenses for FTI are expected to rise by 4.3% year-over-year to $2.12 billion, influenced by inflation and a tight labor market [6][8]. Group 3: Earnings Prediction Model - The Zacks model does not predict an earnings beat for FTI this time, as the Earnings ESP is 0.00% [7][8]. - FTI currently holds a Zacks Rank of 3, indicating a neutral outlook [9].

Core Insights - TechnipFMC has been awarded a significant integrated Engineering, Procurement, Construction, and Installation (iEPCI) contract by Equinor for the Heidrun extension project in the Norwegian North Sea, valued between $75 million and $250 million [1][2][8] - The contract reflects TechnipFMC's growing influence in mature offshore oil and gas regions and is part of its inbound orders for Q2 2025 [2][8] Integrated Execution and Design - TechnipFMC conducted a Front-End Engineering and Design (iFEED) study in collaboration with Equinor, optimizing subsea layout and minimizing lifecycle costs [3][4] - The transition from iFEED to full iEPCI scope demonstrates TechnipFMC's capability to integrate conceptual design with execution, setting a benchmark for subsea project delivery [3][4] Project Impact and Infrastructure - The Heidrun platform, operational since 1995, is crucial for Norway's offshore oil production, and the extension project aims to enhance its production lifecycle and subsea infrastructure [5][6] - The project will design, procure, fabricate, and install subsea infrastructure that ties back to existing assets, aiming to reduce environmental impact and capital expenditure [5][6] Efficiency and Cost Management - TechnipFMC's iEPCI model simplifies project execution by eliminating interface risks and streamlining management under a single contract, leading to reduced lead times and capital costs [7][8] - The integrated approach ensures faster project turnaround and optimized resource allocation, particularly beneficial in high-cost environments like Norway's Continental Shelf [9][8] Strategic Collaboration - The ongoing partnership between TechnipFMC and Equinor is driven by shared values of innovation, efficiency, and environmental responsibility, enhancing operational outcomes through digital technologies [10][11] - The contract reflects Equinor's confidence in TechnipFMC's technical capabilities and project delivery performance, aligning on long-term field development strategies [11] Innovation in Subsea Engineering - TechnipFMC is advancing its technology portfolio to support complex offshore projects, including advanced ROV systems and real-time data analytics [12][13] - The deployment of cutting-edge technologies in the Heidrun extension will enhance field recovery, reduce emissions, and extend the asset's lifespan [13] Strategic Roadmap and Future Outlook - The Heidrun project award is a key addition to TechnipFMC's 2025 strategic roadmap, reinforcing financial resilience and accelerating growth in integrated subsea services [14] - As global energy demand shifts, TechnipFMC is positioned to support operators with low-carbon, cost-efficient subsea solutions, validating its role in energy transition strategies [15][14] Conclusion - The iEPCI contract awarded to TechnipFMC for the Heidrun extension project marks a significant moment in subsea field development, showcasing the effectiveness of early collaboration and integrated execution [16][17] - TechnipFMC continues to redefine subsea project delivery, reinforcing its technical credibility and commitment to sustainable energy solutions [17]