TechnipFMC plc

TechnipFMC reported second-quarter revenue of $2.8 billion and adjusted EBITDA of $601 million, excluding a $19 million foreign exchange loss. Free cash flow was $488 million, cash flow from operations was $548 million, capital expenditures were $60 million, and net cash was $590 million with cash and cash equivalents of $992 million. Subsea revenue was $2.5 billion, up 13% sequentially, with adjusted EBITDA of $577 million and a 23.2% margin; Surface Technologies revenue was $276 million, down 3% sequentially, with adjusted EBITDA of $50 million and an 18.1% margin. Inbound orders were $2.7 billion, including $2.5 billion in Subsea orders. For Q3, Subsea revenue and margin are expected to be in line with Q2, while Surface Technologies revenue is expected to rise mid- to high single digits sequentially with about a 17.5% margin. For full-year 2026, Subsea revenue and margin are expected near the top end of guidance ranges, Surface Technologies revenue near the low end with margin just above the midpoint, corporate expense around $120 million, adjusted EBITDA about $2.19 billion excluding FX, and free cash flow toward $1.45 billion.

Doug Pferdehirt framed the quarter as another example of strong execution and said the company is seeing a more collaborative offshore market, with customers engaging earlier in the development cycle and using portfolio approaches for brownfield and tieback projects. He emphasized that these trends improve project certainty, shorten cycle times, and expand visibility into future awards. His tone was optimistic and confident, especially around Subsea, 2026 inbound orders, and a larger step-up in orders in 2027 and beyond.

Alf Melin highlighted that Q2 adjusted EBITDA was $601 million excluding FX, with Subsea EBITDA margin at 23.2% and Surface Technologies margin at 18.1%. He noted Q2 operating cash flow of $548 million, capital expenditures of $60 million, free cash flow of $488 million, and $440 million returned to shareholders in the quarter through buybacks and dividends. He said the company ended with $992 million of cash and cash equivalents and a $590 million net cash position. On outlook, he said Subsea revenue and margin should be near the top end of ranges, Surface revenue should be closer to the low end, and total company EBITDA is now expected to be approximately $2.19 billion excluding FX, with free cash flow toward $1.45 billion.

Analysts focused on the shift from brownfield and shorter-cycle work in 2026 to larger greenfield projects in 2027, asking whether that changes the mix of direct awards versus competitive tenders. Management said it would not assume fewer direct awards, noting that 80% of the business is direct awarded and that differentiated technology still supports sole-source wins. Questions also covered the company’s move toward industrializing iEPCI, including water column and installation scope; management said this is a major focus, is still in concept-select and experimentation, and is not dependent on flexible versus rigid pipe. Analysts also asked about region-specific demand in Asia Pacific and the surface business, and management pointed to stronger gas activity in Indonesia, Australia, Malaysia, and the Eastern Med, while saying Surface order patterns were influenced by the long-running ADNOC contract cycle and continued activity in Saudi Arabia.