Technip Energies NV Reports Strong Q3 Earnings with Strategic Growth

Technip Energies NV ((FR:TE)) has held its Q3 earnings call. Read on for the main highlights of the call.

Technip Energies NV’s recent earnings call painted a picture of robust financial health, underscored by impressive revenue growth and strategic advancements. The company celebrated significant achievements, including a 9% increase in revenue and strong free cash flow conversion. However, the call also highlighted challenges, such as a decline in TPS revenue and the impact of delayed FIDs on order intake, offering a balanced view of the company’s current standing.

Year-Over-Year Revenue Growth

Technip Energies reported a commendable 9% year-over-year increase in revenue, reaching EUR 5.4 billion. This growth was primarily driven by heightened activity levels across LNG and offshore projects, showcasing the company’s strong operational performance in these sectors.

Solid Free Cash Flow Conversion

The company maintained a robust free cash flow conversion rate from EBITDA at 87%, which supported mid-teens growth in free cash flow compared to the previous year. This highlights Technip Energies’ effective financial management and operational efficiency.

Expansion in LNG and Modularization

Technip Energies further solidified its global leadership in the LNG sector by securing a significant contract in the U.S. for Commonwealth LNG, utilizing the innovative SnapLNG solution. This expansion underscores the company’s strategic focus on growing its LNG capabilities.

Acquisition of Ecovyst’s AM&C

The acquisition of Ecovyst’s Advanced Materials & Catalysts is expected to be immediately accretive, enhancing Technip Energies’ TPS segment capabilities. This strategic move is set to bolster the company’s position in the market.

Strong EBITDA Performance

Recurring EBITDA increased by 9% year-over-year to EUR 478 million, maintaining a stable margin of 8.8%. This performance reflects the company’s ability to sustain profitability amidst a challenging economic environment.

Successful Execution in Decarbonization Projects

Technip Energies achieved significant milestones in its decarbonization efforts, including the startup of the first plant for Carbon Centric in Norway. This success highlights the company’s commitment to sustainable development and innovation.

Decline in TPS Revenue

Despite overall strong performance, TPS revenues declined by 9% year-over-year. This was attributed to lower contributions from ethylene furnace deliveries and significant foreign exchange impacts, presenting a challenge for the company.

Project Delivery Margin Contraction

There was a modest contraction of 30 basis points year-over-year in recurring EBITDA margins for Project Delivery, due to a higher proportion of early phase projects. This indicates some pressure on margins in this segment.

Delayed FIDs Impacting Order Intake

The absence of major awards during the third quarter, due to delayed FIDs, affected the backlog despite a strong commercial pipeline. This delay presents a challenge for future order intake.

Forward-Looking Guidance

Technip Energies provided optimistic guidance for the first nine months of 2025, forecasting strong year-over-year growth across several key financial metrics. The company confirmed its full-year guidance with significant achievements in LNG and modularization, and remains confident in its medium-term outlook. With a backlog exceeding EUR 15 billion, Technip Energies is well-positioned for further growth, particularly in LNG, decarbonization, and circular solutions.

In summary, Technip Energies’ earnings call highlighted a strong financial performance with strategic advancements in key areas such as LNG and decarbonization. While challenges like TPS revenue decline and delayed FIDs were noted, the company’s robust guidance and strategic initiatives suggest a positive outlook for future growth.