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TechnipFMC PLC (FTI)
NYSE:FTI
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TechnipFMC
(NYSE:FTI)77Outperform
Positive Factors
Revenue Growth
Management increased revenue guidance at the midpoint on higher expected Subsea revenue.
Shareholder Returns
FTI repurchased shares during the quarter, with total shareholder returns including dividends reaching a significant amount.
Negative Factors
Surface Outlook
The Surface outlook seems to require a sharp increase from 1Q which may pose some risk.
TechnipFMC (FTI) vs. S&P 500 (SPY)
Market Cap
$11.17B
Dividend Yield0.75%
Average Volume (3M)3.95M
Price to Earnings (P/E)13.9
Beta (1Y)0.80
Revenue Growth16.23%
EPS Growth1403.29%
CountryUS
Employees25,027
SectorEnergy
Sector Strength57
IndustryFossil Fuels
Share Statistics
EPS (TTM)1.92
Shares Outstanding420,571,560
10 Day Avg. Volume5,856,884
30 Day Avg. Volume3,953,304
Financial Highlights & Ratios
PEG Ratio0.00989
Price to Book (P/B)N/A
Price to Sales (P/S)0.78
Price to Cash Flow (P/CF)4.80
P/FCF Ratio4.80
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$38.00Price Target Upside44.43% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering10
TechnipFMC Business Overview & Revenue Model
Company DescriptionTechnipFMC (FTI) is a global leader in the energy sector, specializing in subsea, onshore, offshore, and surface projects. The company provides a comprehensive range of services and products, including technology-driven solutions for the oil and gas industry, such as subsea production systems, offshore platforms, and innovative surface technologies. TechnipFMC is dedicated to enhancing the performance of the world's energy industry by offering integrated solutions that reduce costs and improve efficiency.
How the Company Makes MoneyTechnipFMC generates revenue primarily through its three main business segments: Subsea, Surface Technologies, and New Energies. The Subsea segment is the largest contributor to revenue, providing integrated solutions and services such as subsea engineering, procurement, construction, and installation (EPCI). The Surface Technologies segment offers products and services for the exploration and production of oil and gas, including wellhead systems, flow metering products, and pressure control equipment. The New Energies segment focuses on renewable energy projects and technologies. The company also collaborates with major oil and gas companies through partnerships and joint ventures, which helps to secure long-term contracts and bolster its revenue stream.
TechnipFMC Financial Statement Overview
Summary
TechnipFMC has demonstrated solid financial performance with strong revenue growth from $6.7 billion to $9.1 billion and improved net profit margins. The balance sheet shows effective debt management and profitability improvements, although a decrease in total assets since 2019 is a concern. Strong cash flow growth and efficient cash conversion highlight operational efficiency.Income Statement
TechnipFMC has shown strong revenue growth from 2022 to 2024, with a significant increase in total revenue from $6.7 billion to $9.1 billion, indicating a positive growth trajectory. The company also improved its net profit margin, achieving a positive net income of $842.9 million in 2024 after recovering from a loss in 2022. The EBIT margin improved substantially, reflecting increased operational efficiency. However, the absence of EBITDA data for 2024 limits the assessment of cash generation from operations.80
Positive
Balance Sheet
The balance sheet reflects a healthy equity position with a stable equity ratio, as stockholders' equity remains strong relative to total assets. The debt-to-equity ratio improved significantly, demonstrating effective debt management and reduced leverage risk. The return on equity (ROE) has improved drastically, indicating enhanced profitability for shareholders. However, the total assets have decreased since 2019, which may limit future growth potential.75
Positive
Cash Flow
TechnipFMC has demonstrated strong free cash flow growth from 2023 to 2024, with free cash flow increasing to $679.4 million. The operating cash flow to net income ratio is robust, reflecting efficient cash conversion from net income. The company has maintained positive free cash flow to net income ratio, indicating its ability to generate significant cash relative to its net earnings. These factors suggest strong cash flow management and operational efficiency.85
Very Positive
| Breakdown | |||||
| TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 8.78B | 9.08B | 7.82B | 6.70B | 6.40B | 6.53B | Gross Profit |
| 1.67B | 9.08B | 1.27B | 197.30M | 33.90M | 694.80M | EBIT |
| 887.90M | 855.30M | 509.10M | 219.60M | 81.10M | 37.40M | EBITDA |
| 1.28B | 855.30M | 706.60M | 567.90M | 466.50M | -3.02B | Net Income Common Stockholders |
| 671.20M | 842.90M | 56.20M | -36.50M | 87.00M | -3.52B |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 5.54B | 1.16B | 962.10M | 1.06B | 1.64B | 1.27B | Total Assets |
| 25.00B | 9.87B | 9.66B | 9.44B | 10.02B | 19.69B | Total Debt |
| 4.19B | 991.20M | 1.97B | 1.37B | 2.00B | 4.32B | Net Debt |
| -1.35B | -166.50M | 1.02B | 309.50M | 677.50M | 3.05B | Total Liabilities |
| 14.57B | 6.73B | 6.48B | 6.17B | 6.60B | 15.48B | Stockholders Equity |
| 10.40B | 3.09B | 3.14B | 3.24B | 3.40B | 4.15B |
| Cash Flow | Free Cash Flow | ||||
| 841.87M | 679.40M | 467.80M | 194.20M | 589.60M | 400.80M | Operating Cash Flow |
| 1.07B | 961.00M | 693.00M | 352.10M | 781.30M | 656.90M | Investing Cash Flow |
| -24.12M | -75.80M | -125.60M | 162.20M | 817.30M | -180.60M | Financing Cash Flow |
| -901.29M | -648.00M | -656.50M | -796.70M | -5.07B | -1.08B |
TechnipFMC Technical Analysis
Negative
26.31
Price Trends
30.30
Negative
29.42
Negative
27.77
Negative
Market Momentum
-1.02
Positive
30.31
Neutral
12.59
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FTI, the sentiment is Negative. The current price of 26.31 is below the 20-day moving average (MA) of 29.43, below the 50-day MA of 30.30, and below the 200-day MA of 27.77, indicating a bearish trend. The MACD of -1.02 indicates Positive momentum. The RSI at 30.31 is Neutral, neither overbought nor oversold. The STOCH value of 12.59 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FTI.
TechnipFMC Peers Comparison
Overall Rating
UnderperformOutperform
Sector (57)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $41.90B | 14.22 | 18.47% | 2.03% | 9.10% | 55.56% | |
77 Outperform | $11.17B | 13.88 | 27.06% | 0.75% | 16.23% | 1403.29% | |
75 Outperform | $21.00B | 8.54 | 25.14% | 2.81% | -0.32% | -3.41% | |
75 Outperform | $5.43B | 8.89 | 10.12% | 1.93% | 3.42% | -35.98% | |
72 Outperform | $53.62B | 12.69 | 21.59% | 2.81% | 9.58% | 6.53% | |
65 Neutral | $1.98B | 13.34 | 21.97% | ― | 9.75% | 50.93% | |
57 Neutral | $8.34B | 5.35 | -5.98% | 7.29% | 0.20% | -69.45% |
* Energy Sector Average
Performance Comparison
FTI
TechnipFMC
26.31
4.46
20.41%
BKR
Baker Hughes Company
42.89
12.99
43.44%
HAL
Halliburton
25.00
-10.38
-29.34%
NOV
NOV
14.96
-2.42
-13.92%
OII
Oceaneering International
19.22
-1.35
-6.56%
SLB
Schlumberger
41.37
-7.73
-15.74%
TechnipFMC Earnings Call Summary
Earnings Call Date: Feb 27, 2025 | % Change Since: -5.67% | Next Earnings Date: Apr 23, 2025
Earnings Call Sentiment Positive
The earnings call reflects a strong performance by TechnipFMC, with significant growth in orders, revenue, and EBITDA. The increase in Subsea and iEPCI orders, along with the success of the Subsea 2.0 platform, highlights the company's robust operational execution. Although there were some declines in Surface Technologies revenue and Subsea EBITDA margin, the overall positive financial results and strategic achievements, such as increased shareholder returns and a positive outlook for energy markets, contribute to a positive sentiment.Highlights
Record Order Inbound and Revenue Growth
TechnipFMC achieved total company inbound of $11.6 billion for the full year, driving year-over-year growth in backlog to $14.4 billion. Total company revenue for the year grew 16% to $9.1 billion.
Significant Growth in Subsea and iEPCI Orders
Subsea inbound orders increased to $10.4 billion, marking the fourth consecutive year with a book-to-bill greater than one. iEPCI orders grew nearly 25% year-over-year, reaching an all-time high.
Strong Financial Performance
Adjusted EBITDA improved to nearly $1.4 billion, an increase of 47% compared to the prior year. Full year free cash flow grew 45% to $679 million.
Subsea 2.0 Platform Success
Subsea 2.0 orders in 2024 significantly outpaced the more than 50% growth of total Subsea awards versus the prior year, demonstrating strong market adoption.
Positive Outlook for Energy Markets
TechnipFMC remains positive about the outlook for energy, anticipating further growth in demand. They have secured $20.2 billion of Subsea orders in the past two years.
Increased Shareholder Returns
The company returned $486 million to shareholders, nearly double the distribution from the prior year, and plans to distribute at least 70% of free cash flow in 2025.
Lowlights
Decline in Surface Technologies Revenue
Surface Technologies revenue decreased 9% versus the prior year, although excluding the impact of the sale of the Measurement Solutions business, revenue increased 1%.
Subsea Adjusted EBITDA Margin Decrease
Subsea adjusted EBITDA margin was 16.5%, down 180 basis points from the third quarter, due to seasonally lower vessel-based activity and a mix of projects executed from backlog.
Company Guidance
In the TechnipFMC Fourth Quarter 2024 Earnings Conference Call, the company provided detailed guidance for the upcoming year, highlighting significant financial and operational achievements. For the full year of 2024, TechnipFMC reported a total inbound of $11.6 billion, driving a year-over-year growth in backlog to $14.4 billion. Subsea inbound orders reached $10.4 billion, marking the fourth consecutive year with a book-to-bill ratio greater than one. Total company revenue increased by 16% to $9.1 billion, while adjusted EBITDA rose by 47% to nearly $1.4 billion. Free cash flow grew 45% to $679 million, with $486 million returned to shareholders, almost double the prior year. For 2025, the company expects Subsea revenue to reach $8.6 billion with an adjusted EBITDA margin of 19.5%, reflecting a 10% revenue growth and a 28% adjusted EBITDA growth compared to 2024. Surface Technologies is projected to achieve $1.275 billion in revenue with a 15.5% adjusted EBITDA margin. Overall, TechnipFMC anticipates high single-digit total company revenue growth and an adjusted EBITDA increase to approximately $1.76 billion for the full year. They also plan to convert over 50% of adjusted EBITDA into free cash flow, with shareholder distributions expected to grow by at least 30% in 2025.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.