TechnipFMC(US:FTI)2026-02-19 21:42Financial Performance - Inbound orders reached $11.2 billion, resulting in a backlog growth of 15% year-over-year to $16.6 billion[241] - Cash provided by operating activities increased by 84% to $1.8 billion, with free cash flow growing 113% to $1.4 billion[241] - Revenue for 2025 was $9,932.6 million, a 9.4% increase from $9,083.3 million in 2024, driven primarily by Subsea revenue growth[256] - Subsea gross profit increased by $437.3 million year-over-year, attributed to a favorable activity mix and volume increase[258] - Surface Technologies revenue increased by $3.3 million, reflecting higher activity in the Middle East, Europe, and Africa, offset by declines in North America and Latin America[257] - Income from equity affiliates increased by $25.3 million in 2025 compared to 2024, driven by higher operational activity in joint ventures[263] - Subsea revenue increased by $846.0 million (10.8%) in 2025, with significant contributions from Brazil ($433.7 million) and Norway ($211.5 million)[268][269] - Surface Technologies revenue increased by $3.3 million (0.3%) in 2025, primarily due to strong activity in the Middle East, Europe, and Africa[270] - Total inbound orders decreased to $11,156.2 million in 2025 from $11,574.6 million in 2024[274] - Total order backlog increased to $16,571.6 million in 2025, up from $14,376.3 million in 2024, with Subsea backlog rising by $2,353.6 million[276] - Cash provided by operating activities increased to $1,764.6 million in 2025 from $961.0 million in 2024, reflecting improved project mix and cash collections[282] - Free cash flow for 2025 was $1,447.4 million, significantly higher than $679.4 million in 2024[287] Shareholder Returns - Shareholder distributions more than doubled to $1.0 billion through share repurchases and dividends, with an additional $2 billion authorized for share repurchases[241] - The company reiterated its commitment to return at least 70% of free cash flow to shareholders in 2026[241] - The Board of Directors declared a quarterly cash dividend of $0.05 per share for 2025, totaling $82.3 million for the year, which annualizes to $0.20 per share[292] - The company authorized additional share repurchases of up to $2.0 billion, increasing total authorization to $3.8 billion, with $918.3 million repurchased in 2025[293] - As of December 31, 2025, the remaining repurchase authority is $2.2 billion, potentially allowing for the repurchase of approximately 48.8 million ordinary shares[294] Financial Position - As of December 31, 2025, TechnipFMC had net cash of $601.9 million, up from $272.5 million in 2024, indicating improved financial leverage[281] - The company restored its investment-grade status, enhancing financial flexibility and lowering borrowing costs[291] - The company maintains a strong balance sheet and sufficient liquidity to support business needs through growth and cyclicality[301] - The company had $2.9 billion in purchase obligations as of December 31, 2025, with over 93% being short-term commitments[298] Expenses and Costs - Selling, general and administrative expenses increased by $38.2 million year-over-year, driven by higher costs associated with support functions[260] - Restructuring, impairment, and other expenses rose to $72.8 million in 2025 from $25.8 million in 2024, primarily due to business transformation initiatives[261] - The gross profit for the year ended December 31, 2025, was positively impacted by approximately $87.0 million due to changes in contract estimates[308] - Certain projects experienced a negative impact of $115.5 million from estimated project cost changes, partially offset by $72.8 million from favorable negotiations[309] Tax and Deferred Assets - During 2025, $142.8 million was released from the valuation allowance for deferred tax assets, primarily due to anticipated utilization in Brazil and the U.S.[313] - The company continues to assess the realizability of deferred tax assets, with significant judgments affecting the valuation allowance[311] Currency and Interest Rate Exposure - A 10% increase or decrease in average exchange rates of all foreign currencies over 2025 would have changed revenue by approximately $521.7 million and income before income taxes by $65.3 million[323] - A 10% increase in the value of the U.S. dollar would have resulted in an additional loss of approximately $116.6 million in the net fair value of cash flow hedges as of December 31, 2025[325] - A 10% increase in interest rates across all tenors would lead to a decrease of $7.2 million in unrealized earnings from foreign currency forward contracts designated as cash flow hedges[326] - Material positions with exposure to interest rates are present in the United States, Brazil, the United Kingdom, Singapore, and Norway as of December 31, 2025[326] Derivative Instruments - Substantially all derivative holdings as of December 31, 2025 and 2024 consisted of foreign currency forward contracts and foreign currency instruments embedded in purchase and sale contracts[321] - The company does not hedge the translation impact on earnings from foreign currency fluctuations[323] - Gains and losses from derivative instruments designated as cash flow hedges are recorded in other comprehensive income until the underlying transactions are recognized[324] - The company manages foreign currency exposure through derivative instruments for transactions not denominated in the subsidiaries' functional currencies[324] - The effectiveness of foreign currency forward contracts designated as cash flow hedges is assessed based on changes in fair value attributable to changes in spot rates[326] - The company does not use derivative financial instruments for speculative purposes[321]