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 [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 the offshore market's growth [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, which enhance project execution certainty [8][9] - The strategy emphasizes a capital-light approach, with a commitment to return at least 70% of free cash flow to shareholders [10][51] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the offshore market's resilience and the company's ability to secure high-quality projects, with expectations for continued strong activity through the end of the decade [9][10] - The company anticipates a decline in revenue for the fourth quarter due to seasonal impacts but maintains a positive long-term outlook for subsea revenue growth [14][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] - 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 working capital expectations - Management indicated that there are more awards to be announced, and working capital expectations will be normalized moving forward [30][31] Question: 2026 subsea guidance and backlog conversion - Management expressed confidence in the 2026 subsea guidance, highlighting strong backlog coverage and the potential for accelerated backlog conversion due to cycle time reductions [39][40] Question: Surface Technologies outlook and all-electric subsea infrastructure - Management noted that the outlook for Surface Technologies remains less certain, while progress on all-electric subsea infrastructure is ongoing, with specific applications identified [66][70] Question: Resource levels and execution capacity - Management assured that they do not take on work they cannot execute and are confident in their staffing and resource levels to meet project demands [84][85]

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 [6][14] - Free cash flow generated was $448 million, with total shareholder distributions amounting to $271 million through dividends and share repurchases [7][16] - The company ended the period with a total backlog of $16.8 billion [14] Business Line Data and Key Metrics Changes - In the Subsea segment, revenue was $2.3 billion, reflecting a 5% increase compared to the previous quarter, driven by increased project activity, particularly in Africa, Australia, and the Americas [14][15] - Surface Technologies reported revenue of $328 million, a 3% increase from the second quarter, primarily due to higher activity in the North Sea and Asia Pacific [15] Market Data and Key Metrics Changes - Subsea orders for the quarter totaled $2.4 billion, contributing to a strong commercial performance, particularly in South America [7][8] - The company anticipates a continued shift in capital investment towards offshore projects due to improved project economics and execution certainty [9][12] Company Strategy and Development Direction - The company is focused on reducing cycle times and improving project returns through innovations like Subsea two point zero and the integrated execution model iEPCI [11][12] - The management believes that offshore projects will increasingly attract capital investment, driven by advancements in technology and project execution [9][10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving over $10 billion of Subsea orders in 2025 and maintaining strong activity levels through the end of the decade [8][12] - The company has increased its share repurchase authorization by $2 billion, reflecting confidence in future performance and commitment to shareholder value [13][21] Other Important Information - The company reduced its debt by $258 million during the quarter, ending with $438 million of gross debt [17] - Full-year adjusted EBITDA guidance has been increased to approximately $1.83 billion, excluding foreign exchange impacts [19] 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 [25][27] Question: Subsea award intake and working capital expectations - Management indicated that there are still more awards to be announced, and the strong inbound order intake reflects the company's differentiated position in the market [32][35] Question: Subsea revenue guidance and backlog conversion - Management expressed confidence in the 2026 revenue guidance, emphasizing strong backlog coverage and the ability to convert backlog into revenue efficiently [40][42] Question: Surface Technologies outlook and margin drivers - Management noted that while the outlook for Surface Technologies is less certain, they are well-positioned with key clients and technology offerings [74][76] Question: Electric subsea infrastructure opportunities - Management highlighted progress in all-electric subsea projects and identified key areas such as carbon capture and storage that will benefit from this technology [78][80]

Core Insights - TechnipFMC reported strong financial results for the third quarter of 2025, with total revenue of $2,647.3 million, a 4.4% increase sequentially and a 12.7% increase year-over-year [3][4] - The company achieved a net income of $309.7 million, or $0.75 per diluted share, reflecting a 14.9% sequential increase and a 12.8% year-over-year increase [3][4] - Adjusted EBITDA was reported at $518.9 million, with an adjusted EBITDA margin of 19.6% [4][5] Financial Performance - Total revenue for the third quarter was $2,647.3 million, up from $2,534.7 million in the previous quarter and $2,348.4 million in the same quarter last year [3] - Net income attributable to TechnipFMC was $309.7 million, with a net income margin of 11.7% [3][4] - Diluted earnings per share increased to $0.75, compared to $0.64 in the previous quarter and $0.63 in the same quarter last year [3][4] - Adjusted net income was $312.1 million, also translating to $0.75 per diluted share [4] - Inbound orders totaled $2,648.1 million, while the backlog increased to $16,813.6 million, reflecting a 14.4% year-over-year growth [3][11] Subsea Segment Highlights - Subsea revenue reached $2,319.2 million, a 4.6% increase from the previous quarter and a 14.4% increase year-over-year [11][12] - Operating profit for the Subsea segment was $401.3 million, with an operating profit margin of 17.3% [11][13] - Subsea inbound orders were $2.4 billion, with a book-to-bill ratio of 1.0x [11][14] Surface Technologies Segment Highlights - Surface Technologies reported revenue of $328.1 million, a 3% increase from the previous quarter [17] - Operating profit for Surface Technologies was $36.8 million, reflecting a 57.3% increase sequentially [18] - Inbound orders for Surface Technologies were $266.6 million, a decrease of 4.1% from the previous quarter [19] Shareholder Returns - The Board of Directors authorized an additional $2 billion in share repurchases, bringing the total authorized amount to $2.3 billion, representing nearly 16% of outstanding shares [6][10] - The company has returned over $1.6 billion to shareholders through stock repurchases and dividends since July 2022 [7] Cash Flow and Capital Management - Free cash flow for the quarter was $448 million, with cash provided by operating activities amounting to $525 million [20][21] - The company ended the period with cash and cash equivalents of $876.6 million, with net cash increasing to $438.6 million [22] Financial Guidance - The company updated its full-year financial guidance for 2025, projecting Subsea revenue in the range of $8.4 to $8.8 billion and Surface Technologies revenue in the range of $1.2 to $1.35 billion [23] - Free cash flow guidance was increased to $1.3 to $1.45 billion [23]

Financial Data and Key Metrics Changes - TechnipFMC has established itself as a leading offshore equipment company with a strong backlog and higher margins through its Subsea two point zero offering [1] - The company is on track to book $30 billion in orders over the last three years and expects another $10 billion next year, indicating a growing backlog that will convert to revenue and earnings [8][7] Business Line Data and Key Metrics Changes - The Subsea business has seen an expansion in its customer base, moving from 10-12 customers to a broader range due to increased offshore investment and TechnipFMC's integrated offerings [9] - Subsea two point zero currently represents 70% of the order book, with expectations for this to grow as it provides predictability and efficiency in project delivery [24][30] Market Data and Key Metrics Changes - The company has expanded its geographical reach, moving from three to four operational pockets globally to a more extensive network, enhancing its market presence [9] - The shift in capital flows towards offshore projects has been noted, with clients showing increased confidence in investing offshore due to TechnipFMC's ability to deliver projects on time and within budget [14][23] Company Strategy and Development Direction - TechnipFMC's strategy focuses on reducing cycle times and improving project delivery through its Subsea two point zero and integrated offerings, which enhance predictability and performance [22][46] - The company is competing for capital flows rather than just against other companies, emphasizing the importance of delivering better project economics and execution [20][47] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the sustainability of the offshore resurgence and the company's ability to grow in orders, revenue, and earnings [6][7] - The management acknowledged the industry's past inefficiencies and emphasized the importance of improved execution and delivery standards in the current market [39][42] Other Important Information - The Surface Technologies business is primarily driven by the Middle East, with significant contributions from Saudi Arabia and the UAE, and is expected to see growth in 2026 [56][61] - TechnipFMC has built new facilities in Saudi Arabia and the UAE to meet local content requirements and support international operations [58][59] Q&A Session Summary Question: How is the order book evolving? - The order book has expanded with more customers and projects, reflecting a growing interest in offshore investments and TechnipFMC's integrated offerings [8][9] Question: What is the mix of orders between greenfield and brownfield projects? - The company has seen a surprising increase in greenfield projects, while brownfield investments continue to be significant due to their high returns [15] Question: How does TechnipFMC differentiate itself from competitors? - The company focuses on capital flows and project execution rather than just competing with other companies, emphasizing the quality of offshore reservoirs and the importance of reducing cycle times [20][47] Question: What is the expected growth for the Surface Technologies business? - The international Surface Technologies business is shaping up nicely, with a focus on project-based work in the Middle East [61][63]