TechnipFMC(US:FTI)2025-10-23 13:30Financial 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]