Technip Energies (TE) Q2 2024 earnings summary

Executive summary

• Achieved 11% year-over-year revenue growth to €3.2 billion and 9% growth in adjusted recurring EBIT to €227 million, with a margin of 7.2% for H1 2024.

• Adjusted net income rose 50% year-over-year to €188 million, with diluted EPS at €1.04.

• Order intake reached €4 billion, driven by major low-carbon LNG and TPS contracts; adjusted backlog increased 8% year-to-date to €17 billion, providing multi-year revenue visibility.

• Maintained leadership in low-carbon LNG, securing major project awards in the Middle East and expanding in energy transition markets.

• Continued innovation and strategic investments, including new green hydrogen, bio-based technology launches, and partnerships in floating offshore wind and plastics recycling.

Financial highlights

• Adjusted revenue: €3,164.3 million (up 11% year-over-year); adjusted recurring EBIT: €227.3 million (up 9% year-over-year), margin 7.2%.

• Adjusted net profit: €188.1 million (up 50% year-over-year); adjusted diluted EPS: €1.04.

• Free cash flow (excluding working capital) at €241 million; adjusted free cash flow: €(94.2) million due to working capital outflow.

• Adjusted net cash at June 30, 2024: €2.6 billion; gross cash €3.3 billion; gross debt €0.8 billion.

• Booked €4 billion in orders in H1, with backlog up €1.3 billion since year start.

Outlook and guidance

• Full-year 2024 guidance: adjusted revenue €6.1–6.6 billion, recurring EBIT margin 7.0%–7.5%, effective tax rate 26%–30%, and double-digit EPS growth.

• Backlog provides revenue visibility for around three years; strong pipeline in LNG, decarbonized markets, and blue molecules.

• LNG market outlook remains favorable, with a €30+ billion commercial pipeline and increasing low-carbon project share.

• TPS segment expected to reach double-digit EBIT margin by 2025, despite ongoing R&D and SG&A investments.

• Brownfield LNG opportunities represent about 20% of pipeline, mainly for 2025-2026.