Thu, Apr 24, 8:01 PM (18 days ago)
### TechnipFMC plc (FTI) Q1 2025 Financial Performance Summary **Revenue and Profitability:** - **Revenue:** Total revenue increased by 9.4% to $2,233.6 million in Q1 2025 from $2,042.0 million in Q1 2024. Subsea revenue grew by 11.6% to $1,936.2 million, driven by increased backlog and higher iEPCI and services activities. Surface Technologies revenue decreased by 3.2% to $297.4 million due to lower activity in North America and Europe, partially offset by growth in the Middle East. - **Profit Margins:** Gross profit increased to $464.9 million in 2025 from $341.4 million in 2024. Subsea gross profit improved by $121.4 million, while Surface Technologies gross profit remained flat. - **Net Income:** Net income attributable to TechnipFMC plc decreased by 9.6% to $142.0 million in Q1 2025 from $157.1 million in Q1 2024. The effective tax rate increased to 37.8% from 23.6% due to geographical profit mix changes and tax accruals. **Cash Flow and Liquidity:** - **Operating Cash Flow:** Operating activities provided $441.7 million in cash in Q1 2025, up from $126.7 million in Q1 2024, driven by increased volume and improved project mix. - **Investing Cash Flow:** Investing activities used $58.2 million in cash in Q1 2025, down from $136.3 million in Q1 2024, primarily due to the absence of proceeds from the sale of the Measurement Solutions business (MSB). - **Financing Cash Flow:** Financing activities used $365.9 million in cash in Q1 2025, up from $256.2 million in Q1 2024, mainly due to increased share repurchases. - **Liquidity:** As of March 31, 2025, TechnipFMC had $1,186.8 million in cash and cash equivalents and $1,250.0 million in availability under the Revolving Credit Facility. The company remains in compliance with all debt covenants. **Segment Performance:** - **Subsea:** Revenue increased by 11.6% to $1,936.2 million, and operating profit increased by 58.3% to $247.9 million, driven by favorable activity mix and higher volume. - **Surface Technologies:** Revenue decreased by 3.2% to $297.4 million, and operating profit decreased by 70.8% to $30.2 million, primarily due to the absence of the MSB sale gain in 2024. **Order Backlog and Inbound Orders:** - **Order Backlog:** Total order backlog increased to $15,816.0 million as of March 31, 2025, up from $14,376.3 million at the end of 2024. Subsea backlog increased by $1,427.5 million, driven by various projects, including TotalEnergies GranMorgu and Equinor Raia. - **Inbound Orders:** Total inbound orders increased to $3,089.1 million in Q1 2025 from $2,774.4 million in Q1 2024, with Subsea orders accounting for $2,785.5 million. **Future Outlook and Uncertainties:** - **Business Outlook:** TechnipFMC expects continued economic growth in 2025, with a positive long-term outlook for oil and natural gas. The company is well-positioned to capitalize on offshore and Middle East markets, driven by technology innovation and energy transition efforts. - **Uncertainties:** The company faces risks related to persistent inflation, global trade disputes, regional conflicts, and geopolitical events. However, TechnipFMC's strong balance sheet and liquidity position it to navigate these challenges. **Dividends and Share Repurchases:** - **Dividends:** The company declared a quarterly cash dividend of $0.05 per share, payable on April 2, 2025. - **Share Repurchases:** TechnipFMC repurchased $250.1 million of ordinary shares in Q1 2025, bringing the total repurchase amount since July 2022 to $955.5 million. The remaining repurchase authority is $844.5 million. **Conclusion:** TechnipFMC plc demonstrated strong revenue growth and improved operating profitability in Q1 2025, driven by increased Subsea activity and a favorable project mix. The company's robust liquidity position and strategic focus on energy transition and technology innovation position it well for future growth. However, ongoing geopolitical and economic uncertainties may impact performance.