Technip Energies (TE) Q2 2025 earnings summary

Executive summary

• Revenue grew 15% year-over-year to €3.6bn in H1 2025, with recurring EBITDA up 13% to €319m and free cash flow exceeding €300m, reflecting strong operational execution and cash generation.

• Major contract awarded for the world's largest low-carbon ammonia facility in the US, with significant wins in Qatar and the UK, supporting a resilient and diversified backlog of €18.0bn (2.6x 2024 revenues).

• Decarbonization projects now represent ~40% of order intake over the past 18 months, with 70% of new orders from outside the Middle East.

• Strategic focus on expanding process technology and proprietary equipment is driving margin enhancement and market leadership.

• Commercial pipeline remains strong, with over €70bn of opportunities in the next two years, especially in LNG, blue molecules, and sustainable fuels.

Financial highlights

• Adjusted revenue: €3,646.4m (+15% YoY); recurring EBITDA: €319.0m (+13% YoY); margin at 8.7%; diluted EPS: €1.07; free cash flow conversion from EBITDA at ~100%.

• Net cash position exceeded €1.6bn; gross cash: €4.0bn; gross debt: €0.7bn; adjusted liquidity: €4.8bn.

• Dividend payout of €150m (or €0.85 per share) for 2024, up 49% year-over-year; share buyback program of up to €45m launched.

• Adjusted order intake: €2,654m; adjusted backlog: €18.0bn (down 8% YoY, impacted by FX); book-to-bill ratio: 0.7.

• Free cash flow after capex reached €322m; operating cash flow €366m; capex at €34m.

Outlook and guidance

• Upgraded 2025 TPS EBITDA margin guidance to 14.0%-14.5% (from ~13.5%); Project Delivery margin guidance at ~8%.

• Full-year adjusted revenue guidance: Project Delivery €5.2-5.6bn, TPS €1.8-2.2bn.

• Corporate costs expected at €50-60m; effective tax rate 26-30%; R&D spend ~€70m.

• Robust near- to mid-term outlook for LNG, blue molecules, and sustainable fuels, with strong commercial pipeline and leadership in key geographies.

• U.S. market remains a key growth area, with minimal impact from DOE funding changes and continued support from tax credits.