Technip Energies N.V.

Reported H1 2026 revenue was EUR 3.7 billion, marginally higher year over year / stable year over year. Group EBITDA was EUR 212 million, materially lower year over year, and recurring EBITDA was around 1/3 lower year over year. Project Delivery revenue was EUR 2.8 billion, up 1% year over year; segment adjusted recurring EBITDA was EUR 118 million, down 45% year over year, with margin of 4.3%, down 350 basis points. TPS revenue was 2% lower year over year, while recurring EBITDA margin rose to 15.4%, up 30 basis points year over year. Free cash flow was EUR 183 million and free cash flow conversion excluding working capital and provisions was 86%. Gross cash reached EUR 4.8 billion, up EUR 1 billion from year-end, and economic net cash was more than EUR 900 million. Order intake was EUR 12.7 billion and backlog was EUR 25 billion, with PD backlog at EUR 23.5 billion. For 2026, management lowered Project Delivery margin guidance to 5% plus, raised TPS margin guidance by 50 basis points, kept revenue outlook unchanged, and lifted the effective tax rate view to 30% to 32%. Corporate cost guidance was EUR 65 million to EUR 70 million, and free cash flow conversion is expected to stay in the 70% to 85% range.

Arnaud Pieton framed the quarter as a mix of near-term operational pain and strong long-term commercial momentum. He emphasized that the Middle East conflict is creating logistical and cost issues, but said the company is using contractual protections and disciplined execution to recover costs and protect the portfolio. He was upbeat on the broader strategy, pointing to a record backlog, diversification away from the Middle East, and a growing pipeline in LNG, offshore, energy derivatives, and sustainable fuels.

Bruno Vibert said the first half had two clear dynamics: Middle East-related profitability pressure and a still-strong underlying business, especially cash and order intake. He highlighted group EBITDA of EUR 212 million, Project Delivery EBITDA of EUR 118 million, TPS margin of 15.4%, actual free cash flow of EUR 183 million, and gross cash of EUR 4.8 billion, along with an economic net cash position of more than EUR 900 million. He also noted the EUR 150 million buyback was completed, a EUR 500 million bond was issued for general corporate purposes, and 2026 guidance now assumes Project Delivery margin of 5% plus, TPS margin up 50 bps, ETR of 30% to 32%, and corporate costs of EUR 65 million to EUR 70 million.

Analysts focused heavily on how much of the Middle East hit was one-time versus recoverable, the size and timing of provisions, and whether 2026 revenue or margins could move further. Management said incremental Middle East logistics costs were roughly EUR 30 million to EUR 40 million per quarter, and that only a very small minority of those costs were assumed recovered in the 2026 guidance because agreements are not yet fully signed. On phasing and H2 assumptions, management said they are assuming conditions stay broadly as they are now, with most shipments still routed through alternative logistics, and said the majority of the cost should be recoverable over time under contractual protections. Analysts also pressed on 2027 margins and backlog phasing; management declined to quantify 2027 upside but said a meaningful recovery is expected and the portfolio remains compatible with the longer-term EBITDA framework.