TechnipFMC(US:FTI)2025-10-23 20:01Revenue Growth - Revenue for the three months ended September 30, 2025, increased by $298.9 million (12.7%) to $2,647.3 million compared to $2,348.4 million in 2024, primarily driven by a $291.1 million increase in Subsea revenue [143]. - Revenue for the nine months ended September 30, 2025, increased by $699.6 million to $7,415.6 million, representing a 10.4% growth compared to the prior year [154]. - Subsea revenue increased by $699.7 million, driven by a backlog increase of 11.1% as of December 31, 2024, with significant contributions from Brazil, Israel, Norway, and Nigeria [155]. Profitability - Subsea gross profit rose by $110.5 million year-over-year, with $63.5 million attributed to volume increase and $47.0 million from a favorable activity mix [145]. - Gross profit rose to $1,662.0 million, up from $1,336.1 million, with Subsea gross profit increasing by $319.5 million due to volume and favorable activity mix [156]. - Net income attributable to TechnipFMC plc for the nine months ended September 30, 2025, was $721.2 million, a 16.7% increase from $618.2 million in the prior year [154]. Orders and Backlog - The backlog increased by 11.1% as of December 31, 2024, compared to December 31, 2023, leading to increased activity across iEPCI™ and subsea services, particularly in Brazil, the United States, and Israel [144]. - The company secured $20.2 billion in Subsea orders over the past two calendar years and expects to exceed $10 billion in inbound orders for the current year, supporting a guidance of $30 billion over the three years ending 2025 [137]. - Subsea order backlog increased to $16,038.2 million as of September 30, 2025, up by $2,520.1 million from $13,518.1 million on December 31, 2024 [180]. Tax and Expenses - The effective tax rate for the three months ended September 30, 2025, was 19.7%, compared to (2.2)% in 2024, reflecting changes in geographical profit mix year-over-year [151]. - Provision for income taxes increased to $269.6 million, resulting in an effective tax rate of 27.2%, up from 14.1% in the prior year [164]. - Selling, general and administrative expenses decreased to $173.2 million in Q3 2025 from $187.4 million in Q3 2024, primarily due to alignment of personnel costs [146]. Cash Flow and Financing - Operating cash flows for the nine months ended September 30, 2025, were $1,311.0 million, an increase of $928.9 million compared to $382.1 million in the same period of 2024 [185]. - Investing activities used $211.0 million of cash during the nine months ended September 30, 2025, compared to $36.7 million provided in the same period of 2024, a decrease of $247.7 million [186]. - Financing activities used $1,412.4 million during the nine months ended September 30, 2025, an increase of $889.9 million from $522.5 million in the same period of 2024 [187]. Shareholder Returns - Cash dividends paid during the nine months ended September 30, 2025, totaled $62.1 million, with a quarterly cash dividend of $0.05 per share declared [193]. - Share repurchases amounted to $750.2 million during the nine months ended September 30, 2025, with a total of $1,455.7 million repurchased since July 2022 [195]. - The company has authorized an additional share repurchase of up to $2.0 billion, allowing for total repurchases of up to $2.3 billion, representing nearly 16% of outstanding shares [196]. Market Outlook - International markets accounted for over 60% of segment revenue in 2024, with significant contributions from the North Sea, Asia Pacific, and the Middle East [139]. - The company anticipates continued strong offshore investment, projecting $10 billion in Subsea inbound orders in 2026 and sustained activity through the end of the decade [138]. Operational Highlights - The company announced three integrated Engineering, Procurement, Construction, and Installation (iEPCI™) projects in 2024, showcasing innovative solutions for carbon capture and subsea processing [130]. - The Subsea 2.0® model has resulted in up to 25% lower product costs and a 12-month delivery time for subsea production equipment, enhancing project economics [134]. - Surface Technologies revenue remained relatively unchanged at $943.9 million, with a notable decline in operating profit by $77.3 million due to lower activity in North America and Latin America [174][175].