Technip Energies N.V.

First-half revenues were EUR 3.7 billion, described as stable or marginally higher year-over-year. Group EBITDA was EUR 212 million, and recurring EBITDA was around 1/3 lower year-over-year. In Project Delivery, segment revenue was EUR 2.8 billion, up 1% year-over-year, while adjusted recurring EBITDA declined 45% to EUR 118 million and EBITDA margin was 4.3%, down 350 bps. In TPS, revenue was 2% lower year-over-year, but recurring EBITDA margin improved to 15.4%, up 30 bps. Order intake was EUR 12.7 billion and backlog reached EUR 25 billion, with PD backlog at EUR 23.5 billion and TPS backlog close to EUR 1.5 billion. Free cash flow conversion excluding working capital and provisions was 86%, actual free cash flow was EUR 183 million, gross cash rose to EUR 4.8 billion, and economic net cash was more than EUR 900 million. For full-year guidance, management lowered Project Delivery margin guidance to 5% plus, maintained the revenue outlook, raised TPS margin guidance by 50 bps, and guided to an effective tax rate of 30% to 32% and corporate costs of EUR 65 million to EUR 70 million.

Arnaud Pieton said the quarter showed a company facing a difficult operating environment but still executing strongly commercially, with a record backlog and broadening demand outside the Middle East. He emphasized cost recovery, contractual protections, and diversification, saying around 75% of awards over the last 24 months came from outside the Middle East. His tone was cautious on 2026 profitability but confident that the portfolio supports a meaningful recovery in 2027 and the longer-term margin trajectory.

Bruno Vibert focused on the financial impact of the Middle East disruption and the underlying balance-sheet strength. He highlighted EUR 212 million of group EBITDA, 86% free cash conversion excluding working capital and provisions, EUR 183 million of free cash flow, and gross cash of EUR 4.8 billion, plus economic net cash of more than EUR 900 million. He said Project Delivery’s lower profitability reflected disputed items and incremental logistics, safety and continuity costs, estimated at around EUR 30 million to EUR 40 million per quarter, while TPS delivered 15.4% margin and higher guidance. He also noted a EUR 500 million bond issuance for general corporate purposes and a 2026 corporate cost outlook of EUR 65 million to EUR 70 million.

Analysts focused heavily on Middle East cost recovery, the size of the provisions, and whether the 2026 margin cut was conservative. Management said some customers have already signed off on cost recovery, but most of the assumed recovery was not yet recognized because the mechanisms were not formally in place; Arnaud said the majority of the cost should be recoverable, but they were being deliberately nonspeculative. Questions also probed logistics through the Strait of Hormuz, with management saying a minority of shipments may still go through the strait while most will use alternative routes, and that current guidance assumes conditions stay roughly unchanged through year-end. On backlog and 2027, management said the portfolio still supports the EUR 800 million EBITDA framework for 2028, but it was too early to give 2027 guidance.