TechnipFMC NYSE: FTI reported second-quarter 2026 revenue of $2.8 billion and adjusted EBITDA of $601 million excluding a $19 million foreign-exchange loss, as strong Subsea project execution lifted margins and free cash flow.
Chief Executive Officer Doug Pferdehirt said the company generated $488 million of free cash flow during the quarter and returned $440 million to shareholders through $420 million in share repurchases and $20 million in dividends. TechnipFMC said it returned $725 million to shareholders during the first six months of 2026, representing 95% of free cash flow.
“The strong financial performance in the period clearly demonstrates the solid momentum in our execution,” Pferdehirt said. The company raised its full-year expectation for total company adjusted EBITDA to approximately $2.19 billion, excluding foreign exchange impacts, and said free cash flow is tracking toward $1.45 billion, the high end of its guidance range.
Subsea margins rise as order outlook remains strong
Inbound orders totaled $2.7 billion in the second quarter, including $2.5 billion in Subsea orders. The company reported a Subsea book-to-bill ratio above one during the quarter and said it sees a strengthening order trend in the second half of the year, supporting its expectation for $10 billion in Subsea inbound orders for 2026.
Subsea revenue rose 13% sequentially to $2.5 billion, driven by increased project activity, especially on EPCI projects in the North Sea and Mediterranean. Higher activity was partly offset by lower activity in Africa and the U.S. Gulf. Subsea adjusted EBITDA increased 31% from the first quarter to $577 million, while the segment’s adjusted EBITDA margin improved to 23.2%.
Pferdehirt said clients are increasingly pursuing brownfield, tieback and marginal-field developments through portfolio-level approaches, using existing host infrastructure and standardized solutions to shorten development cycles. He cited recent iEPCI awards from Vår Energi for the Ofelia and Gjøa Nord projects in the North Sea, where TechnipFMC expects to help deliver first oil within two years, as well as an Equinor award for a portfolio of subsea tiebacks.
The company said its Subsea opportunities list reached another record level. Pferdehirt said 2026 activity is expected to include more smaller, short-cycle brownfield and tieback projects, while 2027 is expected to bring an inflection toward larger greenfield developments. TechnipFMC reiterated expectations for a step-up in Subsea inbound orders in 2027 that it said should extend through the end of the decade.
While management expects larger greenfield projects to return in 2027, Pferdehirt said investors should not infer that direct awards will decline. He said approximately 80% of the company’s business is directly awarded, with the remaining 20% subject to competitive tendering.
Earlier customer engagement and iEPCI development
TechnipFMC said it signed an integrated global collaboration agreement with a longstanding customer during the quarter. The agreement brings the company into project development discussions up to a year earlier than traditional contracting processes, before key subsea architecture and investment decisions are made.
Pferdehirt said earlier involvement can help customers accelerate the time to final investment decision and shorten time to first oil, while providing TechnipFMC greater visibility and, in some cases, opportunities for direct awards.
The company also discussed its efforts to expand industrialization beyond its existing Subsea 2.0 equipment platform. Pferdehirt referred to the next stage as “iEPCI 2.0,” encompassing equipment on the seabed, systems in the water column such as umbilicals, risers and flowlines, and installation activities. He said the company is conducting concept selection and experimentation around technologies and processes, but did not provide a timetable for meaningful order or backlog contribution.
TechnipFMC said about 80% of new orders now use Subsea 2.0 architecture, while the platform accounts for roughly 50% of revenue. Management said the company’s focus remains on reducing cycle times, improving manufacturing efficiency and raising returns without needing to build or acquire additional assets.
Surface Technologies revenue declines, margins improve
Surface Technologies revenue was $276 million, down 3% sequentially. The decline reflected reduced activity in the Middle East due to the ongoing conflict and lower activity in North America, partly offset by stronger international markets.
Despite lower revenue, Surface Technologies adjusted EBITDA rose 1% sequentially to $15 million, and its adjusted EBITDA margin increased 70 basis points to 18.1%. The company said its strategy has centered on serving selected customers and geographies where its technology can generate higher returns.
For the third quarter, TechnipFMC expects Subsea revenue and adjusted EBITDA margin to be in line with the second quarter. It expects Surface Technologies revenue to rise by a mid- to high-single-digit percentage sequentially, with an adjusted EBITDA margin of approximately 17.5%.
For the full year, the company now expects Subsea revenue and adjusted EBITDA margin near the top end of their respective guidance ranges. Surface Technologies revenue is expected near the low end of its range, while the segment’s adjusted EBITDA margin is expected to be just above the midpoint.
The company ended the quarter with $992 million in cash and cash equivalents and a net cash position of $590 million. Corporate expense was $26 million in the quarter, net interest expense was $4 million, and tax expense was $114 million.
About TechnipFMC (NYSE:FTI)
TechnipFMC is an integrated oilfield services and technology company that designs, manufactures and delivers systems and services for the energy industry. The company's activities span the full lifecycle of oil and gas projects, with capabilities in subsea production systems, surface wellhead and intervention equipment, and onshore/offshore engineering and construction. TechnipFMC combines engineering and project management with fabrication, installation and maintenance services to help operators develop and produce hydrocarbon resources.
Its product and service portfolio includes subsea hardware such as trees, manifolds, umbilicals, risers and flowlines, as well as surface equipment for drilling, completions and well intervention.
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