What TechnipFMC (FTI) Said on Its Q3 Earnings Call

Key Points

• Strong Q3 performance: TechnipFMC reported $2.9 billion in revenue, $636 million in adjusted EBITDA and $470 million in free cash flow. Subsea revenue rose 5% sequentially, while its adjusted EBITDA margin reached a record 23.5%.
• Robust demand and shareholder returns: Quarterly inbound orders totaled $2.3 billion, including $2.1 billion in Subsea orders, while the company’s opportunity pipeline grew to $32 billion. TechnipFMC returned $340 million to shareholders through buybacks and dividends during the quarter.
• Guidance raised: The company increased its 2026 Subsea revenue and free-cash-flow forecasts and introduced a 2027 outlook calling for $10 billion–$10.4 billion in Subsea revenue with a 22.5%–24% adjusted EBITDA margin.

TechnipFMC NYSE: FTI reported third-quarter revenue of $2.9 billion, adjusted EBITDA of $636 million excluding foreign-exchange impacts, and free cash flow of $470 million, as its Subsea segment reached a record quarterly adjusted EBITDA margin.

Chair and Chief Executive Officer Doug Pferdehirt said the company’s results reflected continued execution on offshore projects, including deliveries ahead of schedule for TotalEnergies’ GranMorgu development in Suriname. The company also delivered its first Subsea 2.0 tree for Chevron’s Gorgon Stage 3 project in Australia during the quarter and marked the manufacture and delivery of its 200th subsea tree for ExxonMobil in Guyana.

“The Subsea order step-up is here,” Pferdehirt said, citing a growing opportunity pipeline, customer interest in portfolio-based offshore development, and the company’s standardized Subsea 2.0 and integrated engineering, procurement, construction and installation, or iEPCI, offerings.

Segment performance and shareholder returns

Subsea revenue rose 5% sequentially to $2.6 billion, driven by higher activity on iEPCI projects in Indonesia and Brazil and increased services activity. The increase was partly offset by lower project activity in Norway.

Subsea adjusted EBITDA rose 6% from the second quarter to $612 million, and its adjusted EBITDA margin improved to 23.5%, which Chief Financial Officer Alf Melin described as the segment’s highest quarterly margin to date.

Surface Technologies revenue increased 7% sequentially to $296 million, supported by higher activity in the Middle East and greater completion activity in North America. Segment adjusted EBITDA was $53 million, up 7% from the prior quarter, while the margin held essentially steady at 18%.

• Operating cash flow was $531 million, while capital expenditures were $61 million.
• The company ended the quarter with $1 billion of cash and cash equivalents and a net cash position of $645 million.
• TechnipFMC repurchased $320 million of stock and paid $20 million in dividends, for total third-quarter shareholder distributions of $340 million.
• For the first nine months of 2026, the company distributed $1.1 billion to shareholders through dividends and buybacks, representing 86% of free cash flow, according to Melin.

Orders and customer agreements

Inbound orders totaled $2.3 billion in the quarter, including $2.1 billion of Subsea orders. TechnipFMC announced awards to supply flexible pipe systems for Azule Energy in Angola and Petrobras in Brazil, as well as an integrated contract from PETRONAS for the Limbayong deepwater project offshore Malaysia.

Limbayong was one of three iEPCI projects awarded during the quarter, Pferdehirt said. The company also finalized a strategic collaboration agreement with PETRONAS, establishing TechnipFMC as the company’s strategic deepwater development partner and incorporating TechnipFMC’s iFEED-to-iEPCI delivery model.

Separately, TechnipFMC signed a memorandum of understanding with bp under which it will serve as the preferred strategic supplier of 20K systems for bp’s Paleogene program in the U.S. Gulf. Pferdehirt said the agreement builds on the companies’ work on the Kaskida and Tiber developments.

The company’s Subsea opportunities list has increased for nine consecutive quarters and now represents $32 billion at the midpoint of project values, up 25% over two years. Pferdehirt said activity is broadening globally, with opportunities across South America, Africa, Norway, Asia, Australia and the U.S. Gulf.

Guidance raised, 2027 outlook introduced

TechnipFMC increased its 2026 Subsea revenue outlook to a range of $9.6 billion to $9.8 billion and lifted free-cash-flow guidance to $1.45 billion to $1.55 billion. It reduced its expected full-year effective tax rate to 25% to 27% and now expects total company adjusted EBITDA of approximately $2.22 billion for the year, excluding foreign exchange.

For the fourth quarter, the company expects Subsea revenue to decline by a mid- to high-single-digit percentage sequentially due to seasonal factors. Subsea adjusted EBITDA margin is expected to decrease by about 250 basis points to 21%. Melin said the expected decline reflects lower activity in areas including the North Sea, along with planned vessel maintenance and dry-docking.

Surface Technologies fourth-quarter revenue and adjusted EBITDA margin are expected to remain in line with third-quarter levels.

For 2027, TechnipFMC expects Subsea revenue of $10 billion to $10.4 billion and an adjusted EBITDA margin of 22.5% to 24%. At the midpoint of those ranges, Melin said Subsea adjusted EBITDA would increase more than 10% year over year, implying an incremental margin approaching 50%.

Melin attributed the outlook to backlog quality, higher throughput, industrialization efforts, and a greater mix of Subsea 2.0, iEPCI and services work. He said the company does not currently see a major capacity constraint, noting that a Subsea 2.0 order can move through manufacturing facilities at roughly 2.5 times the rate of a traditional “1.0” tree order.

Order timing and offshore outlook

TechnipFMC expects at least $14.5 billion in Subsea orders over the next five quarters. Pferdehirt said the figure includes two to three large projects that are in final stages and may be awarded by year-end, though they could move into 2027 because of timing.

He said the company still views approximately $10 billion of 2026 inbound orders as more likely than not, while emphasizing that the five-quarter outlook was intended to account for potential shifts around the calendar year-end.

Pferdehirt characterized the offshore market’s strength as a structural trend rather than a cyclical response to current macroeconomic conditions. He said operators are pursuing offshore investments because of reservoir quality, improving project economics, energy-security considerations and greater confidence in schedule execution.

He added that new awards are accretive to backlog margins, as the company seeks to share in the economic value created through shorter development cycles and more standardized delivery. TechnipFMC is not including potential contributions from its planned iEPCI 2.0 initiative in its implied 2027 incremental-margin outlook, he said.

About TechnipFMC (NYSE:FTI)

TechnipFMC plc NYSE: FTI is an energy technology and services company that designs, manufactures and delivers equipment and integrated solutions for the exploration, development and production of oil and natural gas resources. The company serves energy operators, engineering and construction firms, and other participants across the global energy industry.

TechnipFMC operates through two principal areas: Subsea and Surface Technologies. Its subsea business provides subsea production systems, subsea services, installation solutions and related technologies used to develop offshore fields.

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