• Total Company Revenue: $9.1 billion, a 16% increase year-over-year.
• Adjusted EBITDA: Nearly $1.4 billion, a 47% increase compared to the prior year.
• Free Cash Flow: $679 million, a 45% increase year-over-year.
• Shareholder Distributions: $486 million, nearly double the prior year.
• Subsea Inbound Orders: $10.4 billion, marking the fourth consecutive year with a book-to-bill greater than 1.
• Subsea Revenue Growth: 22% increase versus the prior year.
• Subsea Adjusted EBITDA Margin: 16.7%, up 340 basis points from the prior year.
• Surface Technologies Revenue: $319 million for the quarter, unchanged from the prior quarter.
• Surface Technologies Adjusted EBITDA Margin: 16.8%, up 150 basis points from the prior quarter.
• Quarterly Revenue: $2.4 billion.
• Quarterly Adjusted EBITDA: $354 million, excluding restructuring and other charges.
• Quarterly Free Cash Flow: $453 million.
• Net Cash Position: $272 million at the end of the period.
• Backlog: $14.4 billion at the end of the period.
• Investment Grade Rating: Upgraded by Moody's with a positive outlook.

• Warning! GuruFocus has detected 3 Warning Signs with FTI.

Release Date: February 27, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• TechnipFMC PLC (NYSE:FTI) reported strong financial performance for 2024, with total company inbound orders reaching $11.6 billion and a backlog of $14.4 billion.
• Subsea inbound orders increased to $10.4 billion, marking the fourth consecutive year with a book-to-bill ratio greater than 1.
• Total company revenue grew by 16% to $9.1 billion, and adjusted EBITDA improved by 47% to nearly $1.4 billion.
• The company achieved a 45% increase in full-year free cash flow to $679 million, returning $486 million to shareholders, nearly double the previous year.
• TechnipFMC PLC (NYSE:FTI) continues to innovate with its iEPCI and Subsea 2.0 models, driving sustainable change in subsea economics and expanding market opportunities.

Negative Points

• Subsea adjusted EBITDA margin decreased by 180 basis points to 16.5% in the fourth quarter due to seasonally lower vessel-based activity and project mix.
• Surface Technologies revenue decreased by 9% for the full year, although it increased by 1% when excluding the impact of the sale of the Measurement Solutions business.
• The company faces challenges in maintaining its competitive edge in Brazil, where traditional installation contracts are not a priority.
• There is uncertainty in the North American market, with lower activity impacting Surface Technologies revenue.
• TechnipFMC PLC (NYSE:FTI) is investing in an ERP upgrade program, which will increase capital expenditures in the short term.

Q & A Highlights

Q: Doug, can you discuss the margin journey for Subsea, particularly as you're nearing 20% margins? What factors are driving this, and where do you see margins heading in the future? A: Douglas Pferdehirt, CEO: The 20% margin was once considered a peak for the sector, but our new operating model, which includes Subsea 2.0 and iEPCI, has allowed us to extract economic benefits by reducing cycle time. We don't see this as a peak margin and expect to deliver higher margins as we execute our high-quality backlog.

Q: What are your thoughts on the Saipem Subsea merger and its implications for TechnipFMC? A: Douglas Pferdehirt, CEO: Strategic transactions can take the path of consolidation or integration. We chose integration to drive sustainable change in subsea economics. Our focus remains on reducing cycle time and ensuring schedule certainty, which creates a better way forward for the industry. The proposed merger does not impact our inbound expectations for 2025 or our multi-year outlook.

Q: How do you plan to manage the balance sheet now that you're in a net cash position? A: Alf Melin, CFO: We have less than $900 million of gross debt and a strong balance sheet. We plan to take down debt as it matures and maintain a small net cash position. We are committed to distributing at least 70% of our free cash flow to shareholders in 2025.

Q: Can you provide insights into the Subsea revenue mix, particularly the contribution from Subsea 2.0 and services in 2025? A: Douglas Pferdehirt, CEO: About a third of our manufacturing activity is associated with Subsea 2.0, and we expect this to grow. Subsea 2.0 orders are well above 50% of our total tree orders, and we project service revenue to be around $1.8 billion in 2025.

Q: What is your outlook for offshore markets in 2026, and how does tendering activity look? A: Douglas Pferdehirt, CEO: We see significant activity and tendering, with strong backlog covering 2025 and most of 2026. We expect 2026 to be a more significant year than 2025, with no plateau or cliff in sight. Tendering activity is strong in mature markets and emerging basins, with a focus on high-quality capacity and direct awards.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.