TechnipFMC Shows EPS Momentum Anchored by Durable Subsea Demand

Core Insights - TechnipFMC plc is projected to experience significant earnings growth, with a 20% increase in 2025 and a further 19% in 2026, driven primarily by its Subsea business [1][8] - The Subsea segment achieved orders of $2.6 billion in Q2 2025, contributing to a total backlog of $15.8 billion, which has increased in six of the last seven quarters, providing strong revenue visibility [2][8] - The durability of Subsea services, which can generate income for 20-35 years post-installation, offers a stable revenue stream that mitigates the impact of energy market fluctuations [3] TechnipFMC Financial Performance - Earnings per share (EPS) are expected to rise from $2.18 in 2025 to $2.59 in 2026, reflecting a robust growth trajectory [1][8] - Subsea revenues are forecasted to be between $8.4 billion and $8.8 billion in 2025, with margins projected at 19-20%, indicating strong operational execution and increased activity levels [2] - EBITDA margins expanded to 21.8% in Q2, highlighting a shift towards more profitable projects and services [2] Market Position and Comparison - TechnipFMC's shares have increased approximately 36% this year, outperforming the Oil/Energy sector's growth of 5.6% [7] - The company is trading at a premium in terms of forward price-to-earnings ratio compared to the industry average, indicating strong market confidence [10] Other Companies with Strong EPS Growth - Leidos Holdings, Inc. is expected to see a 10% EPS improvement in 2025 and a further 5% in 2026, driven by its focus on digital modernization and energy infrastructure [5] - Zebra Technologies is projected to achieve a 16% EPS increase in 2025 and 12% in 2026, supported by recovery in end-market demand and expansion into machine vision and robotics [6]