TechnipFMC: Q2 TAKE THREE

TechnipFMC (FTI) remains optimistic about long-term growth, targeting $30 billion in Subsea orders by 2025, supported by vigorous offshore activity and key iEPCI contracts with Equinor and Vår Energi. Strengthened cash flow and reduced debt position further support its growth plans and shareholder returns. In Q2, the Subsea segment performance improved significantly, while Surface Technologies saw weaker income due to restructuring costs.

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Orders and Outlook: In Q2, TechnipFMC's (FTI) order backlog increased by 5% to $16.6 billion from Q1. The book-to-bill ratio, however, decreased to 1.2x from 1.4x a quarter earlier. Notable iEPCI (integrated Engineering, Procurement, Construction, and Installation) contract awards included an Equinor Heidrun iEPCI Extension Project in Norway. It also signed an iEPCI agreement related to supporting subsea developments with Vår Energi ASA.

Overall, FTI’s management appeared confident in achieving its three-year goal of $30 billion of Subsea inbound orders by 2025. The new iEPCI collaboration agreement with Vår Energi was a significant milestone in Q2. It sees robust activity in offshore energy and expects projects to drive growth through the “end of the decade.”

Segment Results Improved in Q2 : Quarter-over-quarter, revenues in the company's Subsea operating segment increased by 14.5% in Q2. The top line in the Surface Technologies segment decreased less sharply, by 7%. Operating income growth in the Subsea segment exceeded revenue, surging by 53% in Q2, due primarily to improved earnings mix and higher project and services activity. Operating income in the Surface Technologies segment, on the other hand, decreased by 23% due to restructuring, impairment, and other charges related to business transformation

initiatives.

Cash Flows Surged and Debt Fell : FTI's cash flow from operations improved phenomenally in 6M 2025 (by 6.5x) compared to a year ago. As a result, it recorded a healthy FCF of $641 million in 6M 2025. Debt-to-equity (0.21x), as of June 30, improved from FY2024. During Q1, it repurchased shares worth $250 million. The company also reduced debt by $208 million during the quarter.

Thanks for reading the FTI take three, designed to give you three critical takeaways from FTI's earnings report. Soon, we will present a second update on FTI earnings highlighting its current strategy, news, and notes we extracted from our deeper dive.

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