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 order momentum.

• Backlog increased to €17 billion, providing multi-year revenue visibility, driven by major low-carbon LNG project awards in the Middle East.

• TPS segment saw double-digit order intake growth, exceeding €1 billion, and Project Delivery revenues rose 16% year-over-year to €2.2 billion.

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

• Maintained leadership in low-carbon LNG and expanded in energy transition and cleantech markets.

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; adjusted 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; backlog up €1.3 billion since year start.

Outlook and guidance

• On track to deliver full-year 2024 guidance: 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 €45 billion market opportunity through 2026.

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

• Committed to double-digit EBIT margin for TPS by 2025, despite increased R&D and SG&A investments.