TechnipFMC Q4 Earnings Beat on Better Subsea Segment Performance

Core Viewpoint - TechnipFMC plc reported strong fourth-quarter 2024 results, with adjusted earnings and revenues exceeding expectations, primarily driven by the Subsea segment's performance [1][2]. Financial Performance - Adjusted earnings per share for Q4 2024 were 54 cents, surpassing the Zacks Consensus Estimate of 35 cents and up from 14 cents in the same quarter last year [1]. - Revenues reached $2.4 billion, exceeding the Zacks Consensus Estimate by 3.1% and increasing from $2.1 billion year-over-year [1]. - Adjusted EBITDA for the Subsea unit was $338.6 million, beating the estimate of $329 million, while Surface Technologies unit's EBITDA was $53.5 million, above the consensus of $49.3 million [2]. Order and Backlog - Inbound orders for Q4 increased by 90.9% year-over-year to $2.9 billion, contributing to a total backlog of $14.4 billion, which is an 8.7% increase from the previous year [3]. - The Subsea segment's revenues were $2 billion, a 19% increase from $1.7 billion in the prior year, driven by record iEPCI™ and Subsea 2.0 orders [5]. - Surface Technologies segment revenues were $319.4 million, down 10.6% year-over-year, missing the consensus estimate due to lower volumes in North America [6]. Shareholder Returns - The company repurchased 2.4 million shares for $70 million in Q4, with total shareholder distributions amounting to $91.2 million, including a dividend payment of $21.2 million [3]. - A quarterly cash dividend of 5 cents per share was declared, unchanged from the previous quarter, with a total share repurchase authorization of $1.8 billion [4]. Financial Position - Total costs and expenses for the quarter were $2.2 billion, an increase of 11.7% from $1.9 billion year-over-year [8]. - As of December 31, 2024, cash and cash equivalents stood at $1.2 billion, with long-term debt of $607.3 million, resulting in a debt-to-capitalization ratio of 16.4% [9]. 2025 Outlook - The company anticipates Subsea revenues between $8.4 billion and $8.8 billion and Surface Technologies revenues between $1.2 billion and $1.35 billion for 2025 [11]. - Expected adjusted EBITDA margins are 19-20% for Subsea and 15-16% for Surface Technologies, with projected free cash flow of $850 million to $1 billion [11][12].