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]

Financial Data and Key Metrics Changes - Total company revenue for the quarter was $2,500,000,000 with an Adjusted EBITDA of $509,000,000, reflecting a margin of 20.1% when excluding foreign exchange impacts [7][22] - Free cash flow generated was $261,000,000, with total shareholder distributions amounting to $271,000,000 through dividends and share buybacks [7][25] - The total company backlog increased by 5% sequentially to €16,600,000,000 [22] Business Line Data and Key Metrics Changes - In the Subsea segment, revenue was DKK2.2 billion, a 14% increase compared to the first quarter, driven by increased iEPCI project activity in the North Sea and higher installation activity in Brazil [22][23] - Surface Technologies revenue was €318,000,000, a 7% increase from the first quarter, primarily due to higher project and services activity in the Middle East [23][24] - Adjusted EBITDA for Subsea was €483,000,000, up 44% sequentially, with an EBITDA margin of 21.8% [23] Market Data and Key Metrics Changes - In North America, the company has reduced its footprint by 50% over the last three years while improving operating margins and increasing cash flow [10] - International markets now represent nearly two-thirds of Surface Technologies revenue, focusing on core markets with long-term production growth ambitions [10] - Subsea orders achieved $2,600,000,000 in the quarter, with a strong performance in Subsea Services, particularly in greenfield developments [11][12] Company Strategy and Development Direction - The company is focused on transforming its Subsea operations through new commercial models and configurable product offerings, enhancing customer relationships and technology leadership [8][20] - The strategy includes exiting unprofitable markets and consolidating facilities in North America while emphasizing operational efficiency [10] - The company aims to reach a three-year goal of $30,000,000,000 in Subsea inbound by the end of the year, supported by a robust order book [21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating current market challenges and highlighted the importance of strong customer relationships and technology innovation [20] - The outlook for offshore activity remains robust, with significant project sanctioning expected in regions like Guyana and Mozambique [17][19] - The company anticipates continued strength in Subsea revenue growth and an adjusted EBITDA margin similar to the current quarter [25][27] Other Important Information - The company has increased its full-year guidance for total company adjusted EBITDA to approximately $1,800,000,000, a 30% increase compared to the prior year [28] - The company has committed to distributing at least 70% of free cash flow to shareholders, with a current distribution rate of 85% [28] Q&A Session Summary Question: Breakdown of Subsea order book composition - Management confirmed that the strong performance in Subsea Services is a result of successful market strategies and direct awards, indicating a positive trend for the business [31][32] Question: Expectations for awards in the second half - Management indicated that both the Subsea opportunities list and direct awards are expected to contribute to future awards, with confidence in maintaining a robust level of direct awards [34][36] Question: Growth trajectory for services revenue - Management confirmed that services revenue is expected to grow in line with Subsea revenue, with a strong installed base contributing to long-term sustainability [42][44] Question: Insights on brownfield and greenfield project appetite - Management noted a strong commitment to advancing both greenfield and brownfield projects, with significant capital flowing into offshore markets [51][53] Question: Emerging areas for activity outside the Golden Triangle - Management highlighted the importance of regions like East Africa and the Eastern Mediterranean, along with ongoing projects in Brazil and Guyana [61][63] Question: Competitive dynamics in the Middle East - Management emphasized the unique challenges of the Middle East market and the company's focus on technology and high-end services to maintain a competitive edge [70][72] Question: Pricing dynamics in the market - Management clarified that over 80% of their business is direct awarded, which mitigates competitive pricing pressures, focusing instead on project returns and cycle time [88][91] Question: Potential of hybrid flexible pipe technology - Management expressed optimism about the hybrid flexible pipe's applicability across various markets, emphasizing its advantages in weight and installation costs [96][98]

Financial Performance - Total Company revenue increased by 13% to $2.5 billion[11], driven by growth in both Subsea and Surface Technologies segments[11] - Total Company adjusted EBITDA was $509 million, excluding foreign exchange impacts[9, 11] - Free cash flow reached $261 million[9, 11] - Total shareholder distributions amounted to $271 million, including $250 million in share repurchases[11] - The company repaid 200 million euro of maturing debt, reducing gross debt to $696 million[11] Orders and Backlog - Total Company inbound orders were $2.8 billion, with Subsea orders at $2.6 billion, resulting in a book-to-bill ratio of 1.2x[8] - Subsea orders are expected to exceed $10 billion in 2025[8] - Total Company backlog increased sequentially to $16.6 billion, with Subsea backlog growing to $15.8 billion[8] Segment Results - Subsea revenue for Q2 2025 was $2.216 billion, a 14% increase QoQ and 10% increase YoY[10] - Subsea adjusted EBITDA was $483 million, with a margin of 21.8%[10] - Surface Technologies revenue for Q2 2025 was $318 million, a 7% increase QoQ and 1% increase YoY[10] - Surface Technologies adjusted EBITDA was $52 million, with a margin of 16.4%[10] Guidance - The company anticipates full-year 2025 revenue for Subsea to be in the range of $8.4 - $8.8 billion[19] and for Surface Technologies to be in the range of $1.2 - $1.35 billion[16] - The company expects full-year 2025 adjusted EBITDA margin for Subsea to be in the range of 19 - 20%[19] and for Surface Technologies to be in the range of 15 – 16%[16] - The company projects full-year 2025 free cash flow to be in the range of $1.0 - $1.15 billion[19]