TechnipFMC Beats Q2 Estimates on Strong Performance of Subsea Segment

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]