Technip Energies (TE) CMD 2024 summary

Strategic vision and market positioning

• Focuses on sustainable growth through technology, engineering, and innovation, targeting both traditional energy and fast-growing decarbonization and circularity markets.

• Positioned as a leader in LNG, ethylene, carbon capture, hydrogen, ammonia, and sustainable aviation fuels, with a 35%-40% market share in core segments.

• Identifies megatrends like population growth, urbanization, and economic expansion as drivers of increased energy and chemical demand through 2050.

• Leverages technology, scale, and ecosystem partnerships to bridge prosperity and sustainability, maintaining a diversified business model.

• Expands addressable market into hard-to-abate sectors such as power, aviation, and cement, with the total market expected to grow from €40 billion in 2024 to over €100 billion by 2030, a 17% CAGR.

Financial guidance and capital allocation

• Revenue projected to grow at 7–7.4% CAGR, reaching above €8.6 billion by 2028, with EBITDA growing at 8–8.2% CAGR to exceed €800 million.

• Free cash flow conversion rate targeted at 70%-85%, translating to €2.2–€2.6 billion cumulative FCF from 2024–2028.

• Maintains a net cash position of over €1 billion, with disciplined capital allocation prioritizing dividend growth (25%-35% of FCF), technology-led investments, and selective M&A.

• Allocates over €1 billion for investments, focusing on technology, product expansion, and bolt-on acquisitions, with €1 billion firepower for selective investments.

• Supplemental shareholder returns, including share buybacks, considered based on opportunities and market conditions.

Operational excellence and transformation

• Sustains best-in-class safety performance, robust project management, and disciplined project selectivity, ensuring cash-positive projects at every stage.

• Digital transformation underway with 70 initiatives targeting €100 million annualized cost savings and incremental revenues by 2028, leveraging AI and data analytics.

• Expands manufacturing and R&D footprint, especially in India, to support productization and growth in green hydrogen and other technologies.

• Workforce to increase by 20% by 2025, with a focus on upskilling, leveraging global talent pools, and reinforcing efficiency and productivity.

• Strong ESG credentials, aiming for net zero Scope 1 and 2 by 2030, and recognized in the top percentile by rating agencies.