Technip Energies (TE) Q3 2024 earnings summary

Executive summary

• Achieved 13% year-over-year revenue growth for the first nine months of 2024, reaching €5.0 billion, with diluted EPS up 35% year-over-year and strong project delivery and TPS performance.

• Upgraded full-year 2024 revenue guidance to €6.5–6.8 billion, reflecting robust topline momentum and sustained margins, with double-digit growth expected to continue into 2025.

• Backlog increased to €15.9 billion, providing multi-year visibility, with major project awards in LNG, hydrogen, and green ammonia across the Americas, India, and UK.

• Returned over €170 million to shareholders in 2024 through dividends and share buybacks, including a completed €100 million buyback and €102 million dividend.

• Secured major project awards in LNG (Lake Charles, Rovuma), hydrogen (H2Teesside), and green ammonia (AM Green in India), enhancing backlog and diversification for 2025 and beyond.

Financial highlights

• Revenues reached €5.0 billion for the first nine months, up 13% year-over-year; adjusted recurring EBIT rose 12% to €357 million; net profit up 35% to €280 million.

• Free cash flow (excluding working capital) was €360 million; closing gross cash at €3.5 billion; adjusted net cash at September 30, 2024: €2.7 billion.

• Adjusted order intake was €4.8 billion, with book-to-bill ratio at 1.0 for 9M 2024; adjusted backlog at €15.9 billion (2.6x FY 2023 revenue).

• Capital expenditure increased to €56 million, mainly for the Reju plant and new Houston offices.

• Net financial income rose to €88.9 million, driven by higher cash investments.

Outlook and guidance

• Upgraded 2024 revenue guidance to €6.5–6.8 billion (from €6.1–6.6 billion), a 5% increase at the midpoint; recurring EBIT margin expected at 7.0–7.5%.

• Effective tax rate guidance raised to 29%–33% due to earnings mix and potential French surtax.

• Orders expected to exceed revenues for the second consecutive year, with strong prospects for Q4 and 2025.

• Continued optimism for revenue and EBIT growth in 2025, supported by robust backlog and market trends.

• Double-digit EPS growth expected for full year, excluding share buyback impact.