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% excluding foreign exchange impacts [5][11] - Free cash flow generated was $448 million, with total shareholder distributions amounting to $271 million through dividends and share repurchases [5][12] - Total company backlog at the end of the period was $16.8 billion [11] Business Line Data and Key Metrics Changes - Subsea revenue was $2.3 billion, a 5% increase from the previous quarter, driven by increased project activity, particularly in iEPCI™ projects in Africa, Australia, and the Americas [11] - Surface Technologies revenue was $328 million, up 3% sequentially, primarily due to higher activity in the North Sea and Asia-Pacific [11] Market Data and Key Metrics Changes - Subsea orders for the quarter totaled $2.4 billion, contributing to a strong commercial performance [5][11] - The company expects to secure over $10 billion in subsea orders in 2025, reflecting confidence in offshore project investments [7][9] Company Strategy and Development Direction - The company is focused on reducing cycle times and improving project returns through innovations like Subsea 2.0 and iEPCI™ [8][9] - There is a strategic shift towards offshore projects due to improved project economics and reduced costs, which is expected to sustain activity levels through the end of the decade [9][10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to deliver strong performance and maintain high levels of project execution, which is critical for securing future contracts [9][10] - The outlook for subsea revenue in 2026 is projected to be between $9.1 billion and $9.5 billion, with an adjusted EBITDA margin of 20.5% to 22% [15][16] Other Important Information - The board authorized an additional $2 billion in share repurchases, reflecting confidence in the company's outlook and commitment to maximizing shareholder value [10][12] - The company reduced debt by $258 million during the quarter, ending with $438 million in gross debt [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, with expectations for strong free cash flow generation in 2026 [22][24] Question: Subsea award intake and future announcements - Management indicated that there are more awards to be announced, governed by client discussions with local governments [30] Question: 2026 subsea guidance and backlog conversion - Management expressed confidence in the 2026 subsea guidance, highlighting strong backlog coverage and the quality of projects [38][39] Question: Surface Technologies outlook and margin drivers - Management noted that the outlook for Surface Technologies remains less certain, but they are well-positioned with clients in key regions [66][68] Question: All-electric subsea infrastructure opportunities - Management discussed progress in all-electric subsea projects, emphasizing applications in carbon capture and storage, and brownfield tiebacks [70][71] Question: Resource levels and capacity constraints - Management reassured that they do not take on work they cannot execute and are confident in their staffing levels to meet project demands [84][85]