Technip Energies (TE) Q2 2026 earnings summary

Executive summary

• Revenue for H1 2026 was stable year-over-year at €3.7 billion, with recurring EBITDA declining to €212 million due to operational challenges and higher costs linked to the Middle East conflict.

• Order intake reached a record €12.7 billion, driving backlog up over 50% year-to-date to €25 billion, providing strong visibility through the decade.

• Capital returns to shareholders totaled around €300 million, including dividends and a €150 million share buyback.

• Employee share ownership increased, with 45% of staff now shareholders, reflecting confidence in long-term strategy.

• Diversification strategy resulted in 75% of new orders over the last 24 months coming from outside the Middle East.

Financial highlights

• Adjusted recurring EBITDA for H1 2026 was €212 million, down 33% year-over-year, with margin at 5.8%.

• Free cash flow conversion (excluding working capital and provisions) remained high at 86%.

• Gross cash reached a record €4.8 billion, with economic net cash over €900 million.

• Net profit for H1 2026 was €94 million, down from €196.6 million in H1 2025.

• A €500 million bond was issued, strengthening liquidity and increasing net debt.

Outlook and guidance

• Project Delivery revenue guidance for 2026 remains €5.7–6.3 billion, but EBITDA margin guidance was lowered to above 5% from 6.5–7.5%.

• TPS revenue guidance is €1.9–2.2 billion with an EBITDA margin of ~15%.

• Effective tax rate guidance increased to 30–32% due to unfavorable earnings mix.

• Sequential profitability improvement is expected in H2, with potential upside if commercial discussions progress.

• Longer-term outlook supported by global energy diversification and sovereignty trends.