TechnipFMC (FTI) Q3 2024 earnings summary

Executive summary

• Achieved record total company backlog of $14.7 billion, with Subsea backlog at $13.7 billion and strong Q3 revenue of $2.35 billion, up 14.2% year-over-year.

• Net income rose to $274.6 million, a 205% increase year-over-year; adjusted EBITDA reached $389 million (16.6% margin excluding FX), and diluted EPS was $0.63.

• Subsea inbound orders reached $2.5 billion, driving a book-to-bill ratio of 1.2 and expanding the subsea opportunities pipeline to $25 billion.

• Share repurchase authorization increased by $1 billion, now totaling $1.2 billion, with a target to nearly double 2024 shareholder distributions.

• Completed sale of Measurement Solutions business in March 2024, recognizing a $75.2 million gain.

Financial highlights

• Q3 2024 revenue: $2.35 billion (+14.2% YoY); net income: $274.6 million (+205% YoY); adjusted EBITDA: $389 million (16.6% margin excluding FX); diluted EPS: $0.63.

• Subsea Q3 revenue was $2.03 billion (+18.7% YoY), with adjusted EBITDA margin at 18.3%; Surface Technologies Q3 revenue was $320 million, with adjusted EBITDA margin at 15.3%.

• Free cash flow for Q3 was $225 million; cash and equivalents ended at $837 million; net debt declined to $129 million.

• Adjusted net income was $280.5 million; adjusted diluted EPS was $0.64.

• Returned $101.5 million to shareholders in Q3 via repurchases and dividends.

Outlook and guidance

• 2024 guidance: Subsea revenue $7.6–$7.8 billion, adjusted EBITDA margin 16.5–17%; Surface Technologies revenue $1.2–$1.35 billion, adjusted EBITDA margin 13–15%.

• 2025 Subsea revenue guidance raised to $8.3–$8.7 billion, with adjusted EBITDA margin outlook of 18.5–20%.

• Free cash flow for 2024 projected at $425–$575 million.

• Subsea Q4 revenue expected to decline low single digits sequentially, with margin around 16.5%; Surface Technologies Q4 revenue expected to increase low single digits sequentially.

• Confident in achieving $30 billion Subsea inbound orders over 2023–2025.