Financial Data and Key Metrics Changes - Total company revenue for the quarter was $2.6 billion, with adjusted EBITDA of $531 million, resulting in a margin of 20.1% when excluding foreign exchange impacts [4][10] - Free cash flow generated was $448 million, with total shareholder distributions amounting to $271 million through dividends and share repurchases [4][11] - The company ended the period with a total backlog of $16.8 billion [10] Business Line Data and Key Metrics Changes - Subsea revenue was $2.3 billion, reflecting a 5% increase compared to the previous quarter, driven by increased project activity, particularly in iEPCI™ projects [10] - Surface Technologies revenue was $328 million, up 3% from the second quarter, primarily due to higher activity in the North Sea and Asia-Pacific [10] - Adjusted EBITDA for subsea was $506 million, with a margin of 21.8%, while Surface Technologies had an adjusted EBITDA of $54 million, maintaining a margin of 16.4% [10][11] Market Data and Key Metrics Changes - The company reported strong inbound orders of $2.6 billion, with subsea orders contributing $2.4 billion [10] - The company anticipates securing over $10 billion in subsea orders in 2025 and maintaining strong activity levels through the end of the decade [6][8] - The offshore market is expected to receive an increasing share of capital investment due to improvements in project execution and cost management [6][8] Company Strategy and Development Direction - The company is focused on reducing cycle times and improving project returns through innovations like Subsea 2.0 and the integrated execution model iEPCI™ [7][8] - The strategy emphasizes operational excellence and the ability to deliver projects on time and within budget, which has led to increased direct awards from clients [8][64] - The company has authorized an additional $2 billion in share repurchases, reflecting confidence in its outlook and commitment to maximizing shareholder value [9][11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving over $10 billion in subsea orders for 2025, citing strong commercial success and customer trust [6][8] - The company highlighted the importance of continuous improvement and lean operating principles to enhance project execution and returns [9][39] - Management noted that the offshore market is becoming more favorable for investment due to improved project economics and reduced execution risks [6][48] Other Important Information - The company reduced its debt by $258 million during the quarter, ending with $438 million in gross debt [11][12] - Cash and cash equivalents stood at $877 million, with a net cash position of $439 million [12] - The company expects a decline in revenue for the fourth quarter due to seasonal impacts, with adjusted EBITDA margin anticipated to decrease to 18.8% [12][13] Q&A Session Summary Question: Share repurchase authorization and cash return in 2026 - Management confirmed a commitment to return at least 70% of free cash flow to shareholders, maintaining the same level as in 2025 [18][20] Question: Subsea award intake and working capital expectations - Management indicated that there are still more awards to be announced and emphasized the strength of their order intake, which is differentiated by direct awards [22][23][25] Question: 2026 subsea guidance and backlog conversion - Management expressed confidence in the 2026 subsea guidance, highlighting strong backlog coverage and the quality of projects [27][30] Question: Drivers of margin expansion in 2026 - Management identified Subsea 2.0 and iEPCI™ execution as key drivers for margin expansion, emphasizing sustainable operational improvements [36][38] Question: Outlook for Surface Technologies - Management noted that the outlook for Surface Technologies remains less certain compared to subsea, but highlighted strong positioning in key markets [51][54] Question: All-electric subsea infrastructure opportunities - Management discussed progress in all-electric subsea projects, emphasizing applications in carbon capture and storage, and brownfield tiebacks [55][57] Question: Execution focus as backlog deepens - Management reiterated a commitment to only take on work that can be executed effectively, ensuring high performance and repeat awards [62][66]