TechnipFMC Reports Mixed Q1 2025 Earnings Amid Rising Costs
TechnipFMC plc (FTI) announced first-quarter 2025 adjusted earnings of 33 cents per share, falling short of the Zacks Consensus Estimate of 36 cents. This shortfall was mainly attributed to a 4.8% increase in costs and expenses compared to the previous year. Despite this, the company’s earnings improved from a profit of 22 cents per share in the same quarter last year, bolstered by stronger performance in the Subsea segment.
The oil and gas equipment provider, based in Houston, TX, reported revenues of $2.2 billion. However, this figure missed the Zacks Consensus Estimate by 1.1%, although it showed an increase from the $2 billion reported in the year-ago quarter.
Adjusted EBITDA for the Subsea division reached $334.9 million, exceeding the Zacks Consensus Estimate of $331 million. The Surface Technologies unit also performed well, reporting adjusted EBITDA of $46.6 million, surpassing the consensus mark of $41.94 million.
In Q1, inbound orders for TechnipFMC rose by 11.3% year-over-year to $3.1 billion, contributing to an increase in the company’s backlog. As of the end of March, TechnipFMC’s total backlog stood at $15.8 billion, marking a 17.2% increase from the previous year.
On April 22, 2025, the board of directors declared a quarterly cash dividend of 5 cents per share, unchanged from the prior quarter. Shareholders on record as of May 20 will receive this payment on June 4, 2025.
During the quarter, TechnipFMC repurchased 8.9 million common shares for a total of $250.1 million. With a dividend payment of $21 million, total shareholder returns for the quarter reached $271.1 million.
TechnipFMC plc Price, Consensus and EPS Surprise
TechnipFMC plc price-consensus-eps-surprise-chart | TechnipFMC plc Quote
Segmental Analysis of TechnipFMC
Subsea: Revenues from the Subsea segment reached $1.9 billion, up 11.6% from $1.7 billion a year prior. This increase was driven by higher project activity in Asia Pacific and Brazil. However, this figure was 5.3% below expectations.
The adjusted EBITDA for this segment saw a significant 38.2% increase compared to the prior year’s figures. The better performance stemmed from an improved earnings mix from the backlog and effective project execution.
In addition, inbound orders in the Subsea segment grew 38.2% year-over-year to $2.8 billion, with an accompanying backlog increase of 20%.
Surface Technologies: This segment reported revenues of $297.4 million, down 3.2% from the previous year. Despite this decrease, the revenue exceeded expectations of $288.4 million.
Adjusted EBITDA for Surface Technologies climbed by 12.6%, primarily attributed to increased project activity in North America. However, inbound orders were down 18.1% year-over-year, and the backlog decreased by 16.1% compared to the previous year.
FTI’s Financials
For the quarter, TechnipFMC reported total costs and expenses of $2 billion, a 4.8% increase from $1.9 billion in the same quarter last year.
The company made capital investments of $61.8 million and generated $441.7 million in cash flow from operations, with free cash flow reaching $379.9 million.
As of March 31, 2025, TechnipFMC held cash and cash equivalents of $1.2 billion, with long-term debt totaling $410.8 million; this results in a debt-to-capitalization ratio of 11.8%.
TechnipFMC’s 2025 Outlook
TechnipFMC anticipates Subsea revenue for 2025 to be between $8.4 billion and $8.8 billion, alongside projected revenues of $1.2 billion to $1.35 billion for the Surface Technologies segment.
The company expects an adjusted EBITDA margin of 19-20% for Subsea and 15-16% for Surface Technologies.
The Zacks Rank #3 (Hold) company is now projecting free cash flow to lie between $1 billion and $1.15 billion, an upgrade from the previous estimate of $850 million to $1 billion. Additionally, it expects annual capital expenditures near $340 million and net interest expenses of $45-$55 million for the year, with net corporate expenses estimated to be between $115 million and $125 million.
Key Earnings Overview
While we reviewed TechnipFMC’s first-quarter results, it’s worth noting reports from other industry players.
Liberty Energy (LBRT) reported an adjusted net income of 4 cents per share, slightly exceeding the Zacks Consensus Estimate of 3 cents. However, this figure was down from 48 cents last year, mainly due to a decline in service activity.
As of March 31, Liberty held $24.1 million in cash and had a long-term debt of $210 million, reflecting a debt-to-capitalization ratio of 9.6%.
Halliburton Company (HAL) posted an adjusted net income of 60 cents per share in the first quarter, which met the Zacks Consensus Estimate. This was a decrease from the previous year’s 76 cents, impacted by softer North American activity but partially offset by international growth. Revenues totaled $5.4 billion, down 6.7% year-over-year, yet still above the Zacks estimate of $5.3 billion.
As of March 31, Halliburton had approximately $1.8 billion in cash and $7.2 billion in long-term debt, leading to a debt-to-capitalization ratio of 40.8.
Baker Hughes (BKR) reported adjusted earnings of 51 cents per share, surpassing the Zacks Consensus Estimate of 47 cents, and improving from 43 cents last year.
By the end of March, Baker had cash and cash equivalents amounting to $3.3 billion, with a long-term debt of $5.97 billion, resulting in a debt-to-capitalization ratio of 25.9%.
