Technip Energies (TE) Q2 2024 earnings summary

Executive summary

• Achieved double-digit revenue growth to €3.2 billion in H1 2024, with net profit up 50% year-over-year to €188 million and strong project delivery and TPS growth.

• Backlog reached €17 billion, up from €15.7 billion at FY 2023, providing multi-year revenue visibility.

• Secured major low-carbon LNG awards in the Middle East and expanded in energy transition markets, supporting robust order intake.

• Innovation and sustainability initiatives advanced, including new green hydrogen, bio-based technology launches, and floating offshore wind partnerships.

• Strong commercial momentum with major LNG project awards and sustained TPS order growth of nearly 15% year-over-year.

Financial highlights

• Adjusted revenues up 11% year-over-year to €3.2 billion; adjusted recurring EBIT rose 9% to €227 million with a margin of 7.2%.

• Net profit increased to €188 million from €125 million in H1 2023; diluted EPS at €1.04.

• Free cash flow (excluding working capital) at €241 million; reported free cash flow was €(94) million due to working capital outflow.

• Net cash position at €2.6 billion, with gross cash of €3.3 billion and gross debt of €0.8 billion.

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

Outlook and guidance

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

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

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

• 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.