TechnipFMC (FTI) Q4 2024 earnings summary

Executive summary

• Achieved record full-year revenue of $9.1B, up 16% year-over-year, with net income of $842.9M and inbound orders of $11.6B, driving backlog to $14.4B.

• Subsea inbound orders reached $10.4B, marking the fourth consecutive year with book-to-bill above one, driven by iEPCI, Subsea 2.0, and Subsea Services.

• Adjusted EBITDA rose 47% to nearly $1.4B; free cash flow grew 45% to $679M, with $486M returned to shareholders, nearly double the prior year.

• Moody’s upgraded credit rating to investment grade (Baa3) in January 2025.

• Strategic focus on simplification, standardization, and industrialization (SSI) is transforming operations and driving sustainable returns.

Financial highlights

• Q4 2024 revenue was $2.4B, up 1% sequentially and 13.9% year-over-year; adjusted EBITDA was $354M (16.5% Subsea margin, 16.8% Surface margin).

• Q4 net income was $224.7M; adjusted net income $236.2M; adjusted EPS was $0.54, up from $0.14 in Q4 2023.

• Q4 free cash flow was $453M; full-year free cash flow was $679M with 50% conversion.

• Year-end cash and equivalents totaled $1.16B; net cash position was $272M.

• Gross leverage ratio well below 1x EBITDA; investment grade ratings from all three agencies.

Outlook and guidance

• 2025 Subsea revenue guidance is $8.4B–$8.8B (+10%), with adjusted EBITDA margin of 19–20%, implying 28% Adjusted EBITDA growth.

• Surface Technologies 2025 revenue guided at $1.2B–$1.35B, Adjusted EBITDA margin at 15–16%.

• Total company capital expenditures expected at $340M, below long-term guidance as % of revenue.

• Full-year free cash flow expected in the $850M–$1B range; high single-digit revenue growth and Adjusted EBITDA of ~$1.76B at midpoint.

• Plan to distribute at least 70% of free cash flow to shareholders in 2025, targeting >30% growth in distributions.