TechnipFMC (FTI) AI Stock Analysis

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TechnipFMC

(NYSE:FTI)

77Outperform

TechnipFMC's strong financial performance, as demonstrated by revenue growth and improved margins, is a key strength. The positive outlook from the earnings call, supported by a robust order book and strategic initiatives, further enhances its prospects. While the valuation is fair, technical indicators suggest a cautious near-term outlook. Overall, the company's solid foundations and growth prospects position it well within the industry.

Positive Factors

Debt and Financing

Moody's credit upgrade to BBB- opens the door for more attractive financing terms for future debt facilities.

Financial Performance

Management raised FY25 FCF expectations by ~16% at the midpoint, pointing to a nearly 60% Y-Y increase despite keeping guidance for revenues, margins, and capital expenditures unchanged.

Order Backlog

FTI continues to grow its backlog with orders from established and up-and-coming basins alike, providing strong cash flow visibility.

Negative Factors

Surface Outlook

The Surface outlook seems to require a sharp increase from 1Q which may pose some risk.

TechnipFMC (FTI) vs. S&P 500 (SPY)

Market Cap

$12.22B

Dividend Yield0.69%

Average Volume (3M)5.32M

Price to Earnings (P/E)15.4

Beta (1Y)1.03

Revenue Growth14.26%

EPS Growth294.37%

CountryUS

Employees21,000

SectorEnergy

Sector Strength43

IndustryOil & Gas Equipment & Services

Share Statistics

EPS (TTM)0.33

Shares Outstanding419,229,500

10 Day Avg. Volume5,256,847

30 Day Avg. Volume5,323,667

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)0.00

Price to Cash Flow (P/CF)0.00

P/FCF Ratio0.00

Enterprise Value/Market Cap1.18

Enterprise Value/RevenueN/A

Enterprise Value/Gross Profit8.34

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

$36.27

Price Target Upside22.12% Upside

Rating ConsensusStrong Buy

Number of Analyst Covering12

TechnipFMC Business Overview & Revenue Model

Company DescriptionTechnipFMC plc engages in the oil and gas projects, technologies, and systems and services businesses in Europe, Central Asia, North and Latin America, the Asia Pacific, Africa, and the Middle East. The Subsea segment engages in the design, engineering, procurement, manufacturing, fabrication, installation, and life of field services for subsea systems, subsea field infrastructure, and subsea pipe systems used in oil and gas production and transportation. It provides subsea production and processing systems; subsea umbilicals, risers, and flowlines; vessels; and Subsea Studio for optimizing the development, execution, and operation of current and future subsea fields. This segment also offers well and asset services; research, engineering, manufacturing, and supply chain; and product management services. The Surface Technologies segment designs, manufactures, and services products and systems used in land and shallow water exploration and production of crude oil and natural gas. This segment offers drilling and completion systems; surface wellheads and production trees systems; iComplete, a digitally enabled pressure control system; fracturing tree and manifold systems; pressure pumping; well service pumps; well control, safety and integrity systems, multiphase meter modules, in-line separation and processing systems, and standard pumps; flowback and well testing services; skid systems; automation and digital systems; and flow measurement and automation solutions. It also offers planning, testing and installation, commissioning, operations, replacement and upgrade, maintenance, storage, preservation, intervention, integrity, decommissioning, and abandonment; and supplies flexible lines and flowline products and services. TechnipFMC plc has a strategic alliance with Talos Energy Inc. to develop and deliver technical and commercial solutions to Carbon Capture and Storage projects. The company was founded in 1884 and is based in Newcastle Upon Tyne, the United Kingdom.

How the Company Makes MoneyTechnipFMC generates revenue primarily through its three main business segments: Subsea, Surface Technologies, and New Energies. The Subsea segment is the largest contributor to revenue, providing integrated solutions and services such as subsea engineering, procurement, construction, and installation (EPCI). The Surface Technologies segment offers products and services for the exploration and production of oil and gas, including wellhead systems, flow metering products, and pressure control equipment. The New Energies segment focuses on renewable energy projects and technologies. The company also collaborates with major oil and gas companies through partnerships and joint ventures, which helps to secure long-term contracts and bolster its revenue stream.

TechnipFMC Financial Statement Overview

Summary

TechnipFMC has shown robust financial performance with significant improvements in revenue, profitability, and cash flow generation. The strong balance sheet with manageable debt levels and effective equity utilization further solidify its financial position. Notable growth in revenue, gross profit margin, and net profit margin reflect enhanced operational efficiency and profitability.

Income Statement

Very Positive

TechnipFMC has demonstrated strong revenue growth, with a notable increase in total revenue from $6.70 billion in 2022 to $9.27 billion in TTM (Trailing-Twelve-Months). The gross profit margin improved significantly from 2.94% in 2022 to 27.24% in TTM, reflecting enhanced operational efficiency. Net profit margin also saw a notable increase to 8.93% in TTM, indicating improved profitability. The company has successfully increased its EBIT and EBITDA margins, showcasing robust profitability in its core operations.

Balance Sheet

Positive

The balance sheet shows a stable equity position, with stockholders' equity at $3.07 billion in TTM. The debt-to-equity ratio is relatively low at 0.42, indicating manageable leverage levels. The return on equity has improved to 26.95% in TTM, showcasing effective use of shareholders' funds. The equity ratio stands at 30.79%, reflecting a balanced capital structure. Overall, the company maintains a healthy balance sheet with controlled debt levels.

Cash Flow

Positive

TechnipFMC has shown substantial growth in free cash flow, increasing from $0.19 billion in 2022 to $1.24 billion in TTM. The operating cash flow to net income ratio is strong at 1.85, indicating efficient cash generation from operations. The free cash flow to net income ratio is also favorable at 1.50. These metrics highlight the company's strong cash flow position and its ability to generate cash to support operations and growth.

Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
9.08B	7.82B	6.70B	6.40B	6.53B
	Gross Profit
1.72B	1.27B	197.30M	33.90M	694.80M
	EBIT
982.60M	509.10M	219.60M	81.10M	37.40M
	EBITDA
1.41B	706.60M	567.90M	466.50M	-3.02B
	Net Income Common Stockholders
842.90M	56.20M	-36.50M	87.00M	-3.52B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.17B	962.10M	1.06B	1.64B	1.27B
	Total Assets
9.87B	9.66B	9.44B	10.02B	19.69B
	Total Debt
1.79B	1.97B	1.37B	2.00B	4.32B
	Net Debt
633.70M	1.02B	309.50M	677.50M	3.05B
	Total Liabilities
6.73B	6.48B	6.17B	6.60B	15.48B
	Stockholders Equity
3.09B	3.14B	3.24B	3.40B	4.15B
Cash Flow		Free Cash Flow
679.40M	467.80M	194.20M	589.60M	400.80M
	Operating Cash Flow
961.00M	693.00M	352.10M	781.30M	656.90M
	Investing Cash Flow
-75.80M	-125.60M	162.20M	817.30M	-180.60M
	Financing Cash Flow
-648.00M	-656.50M	-796.70M	-5.07B	-1.08B

TechnipFMC Technical Analysis

Technical Analysis Sentiment

Positive

Last Price29.70

Price Trends

50DMA

27.76

Positive

100DMA

29.14

Positive

200DMA

28.17

Positive

Market Momentum

MACD

0.54

Negative

RSI

59.56

Neutral

STOCH

80.69

Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FTI, the sentiment is Positive. The current price of 29.7 is above the 20-day moving average (MA) of 27.13, above the 50-day MA of 27.76, and above the 200-day MA of 28.17, indicating a bullish trend. The MACD of 0.54 indicates Negative momentum. The RSI at 59.56 is Neutral, neither overbought nor oversold. The STOCH value of 80.69 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FTI.

TechnipFMC Peers Comparison

Overall Rating

UnderperformOutperform

Sector (56)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FTI	77 Outperform	$12.22B	15.44	27.24%	0.69%	14.26%	294.37%
TS	76 Outperform	$19.94B	10.20	10.45%	4.06%	-15.28%	-45.42%
BKR	74 Outperform	$36.76B	12.67	18.04%	2.37%	6.22%	62.58%
SLB	72 Outperform	$45.67B	11.45	20.82%	3.31%	5.83%	-2.03%
NOV	71 Outperform	$4.47B	7.93	9.29%	2.54%	0.54%	-39.88%
HAL	70 Outperform	$17.71B	8.63	20.99%	3.50%	-2.54%	-17.53%
Sector *	56 Neutral	$6.91B	3.46	-4.86%	5.95%	0.08%	-49.21%

* Energy Sector Average

Performance Comparison

FTI

TechnipFMC

29.70

3.29

12.46%

BKR

Baker Hughes Company

36.25

4.64

14.68%

HAL

Halliburton

20.24

-15.98

-44.12%

NOV

12.42

-6.06

-32.79%

SLB

Schlumberger

34.32

-12.93

-27.37%

Tenaris SA

33.62

0.76

2.31%

TechnipFMC Earnings Call Summary

Earnings Call Date:Apr 24, 2025

(Q1-2025)

% Change Since: 18.66%|

Next Earnings Date:Jul 24, 2025

Earnings Call Sentiment Positive

TechnipFMC demonstrated strong financial performance with significant growth in adjusted EBITDA and free cash flow, supported by robust subsea orders and strategic alliances. The company's limited exposure to commodity price fluctuations and tariffs provides stability. Despite some revenue declines in specific segments due to seasonal and regional factors, the overall outlook remains positive, with increased shareholder returns and confidence in future growth.

Q1-2025 Updates

Positive Updates

Strong Financial Performance

TechnipFMC reported total company revenue of $2.2 billion and an adjusted EBITDA of $356 million, marking a 38% increase from the prior year with a margin of 15.9%. Free cash flow was $380 million, a significant achievement despite typical seasonality.

Subsea Segment Success

First quarter subsea inbound orders totaled $2.8 billion with a book-to-bill ratio of 1.4. Orders have exceeded revenue in eight of the last nine quarters, highlighting strong demand for iEPCI and Subsea 2.0 technologies.

Strategic Alliances and Growth Opportunities

TechnipFMC announced a strategic alliance with Cairn Oil and Gas for deepwater developments offshore India and highlighted more than $26 billion in subsea opportunities, representing a 20% growth over the last year.

Limited Exposure to Commodity Prices and Tariffs

The company emphasized its limited exposure to U.S. land market and potential tariffs, estimating an impact of less than $20 million on adjusted EBITDA for the full year.

Positive Outlook and Shareholder Returns

TechnipFMC reiterated its full-year guidance for adjusted EBITDA of approximately $1.76 billion and increased its free cash flow expectations to $1 billion to $1.15 billion. The company remains committed to returning at least 70% of free cash flow to shareholders.

Negative Updates

Subsea Revenue Decline

Subsea revenue of $1.9 billion decreased by 5% compared to the fourth quarter, driven by lower activity in Africa, the North Sea, and reduced services activity due to seasonality.

Surface Technologies Revenue Decrease

Revenue in Surface Technologies was $297 million, a decrease of 7% from the fourth quarter, due to project timing in the Middle East and lower activity in Africa and Asia Pacific.

Company Guidance

In the first quarter of 2025, TechnipFMC reported robust financial results with a total company revenue of $2.2 billion and an adjusted EBITDA of $356 million, reflecting a 38% year-over-year increase and a margin of 15.9% when excluding foreign exchange impacts. The company achieved a free cash flow of $380 million, driven by strong cash collections. Subsea inbound orders totaled $2.8 billion, resulting in a book-to-bill ratio of 1.4, highlighting a continued trend of orders exceeding revenue in eight of the last nine quarters. The company's subsea opportunities list has grown nearly 20% over the past year, representing more than $26 billion in potential projects. With a backlog of nearly $16 billion and limited exposure to U.S. land market volatility and recently announced tariffs, TechnipFMC remains confident in achieving its 2025 guidance of over $10 billion in subsea inbound orders and adjusted EBITDA of approximately $1.76 billion. The company also raised its full-year free cash flow expectations to a range of $1 billion to $1.15 billion, citing strong operating performance and structural improvements in its business model.

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.