TechnipFMC (FTI) Piper Sandler 26th Annual Energy Conference 2026 summary

Structural transformation and operational improvements

• Offshore project economics have been transformed by reducing cycle times and implementing a configurable, catalog-based subsea architecture, eliminating bespoke engineering and increasing certainty of outcomes.

• Integration of FMC Technologies and Technip in 2017 created a unique, fully integrated offering from design to 20–30 years of aftermarket services, making offshore investments more attractive.

• Offshore now operates in a deflationary environment, contrasting with inflationary pressures elsewhere, due to efficiency gains and faster project execution.

• The Subsea 2.0 platform enables 2.5x throughput, boosting margins and returns by streamlining production and reducing engineering at order time.

Market outlook and regional opportunities

• The subsea opportunity outlook has reached a record $29 billion, with billion-dollar projects doubling in the past 24 months and further expansion expected by 2027.

• Key growth regions include Brazil (pre-salt and Equatorial Margin), Suriname, Guyana, U.S. Gulf (notably the Paleogene), North Sea, Africa (notably Mozambique and the Orange Basin), and Indonesia.

• Activity is robust in both mature and emerging offshore basins, with Africa and Asia poised for significant growth, especially in gas developments.

• Exposure to the Middle East is minimal, with only 4% of revenue from the region, and no involvement in shallow water subsea projects there.

Growth trajectory, backlog, and margin expansion

• Orders are projected to exceed $10 billion in 2026, with growth continuing into 2027, supported by a strong backlog and visibility into future commitments.

• Margin expansion is driven by both market growth and internal efficiency improvements, particularly through the Subsea 2.0 platform.

• The company is in a period of sustained growth, with increasing inbound orders, backlog, revenue, margins, and free cash flow.