TechnipFMC (FTI) Q2 2024 earnings summary

Executive summary

• Achieved record backlog of $13.9 billion, with Subsea inbound orders of $2.8 billion and a book-to-bill ratio of 1.4x; total company orders were $3.1 billion.

• Q2 2024 revenue grew 17.9% year-over-year to $2.33 billion, with net income of $186.5 million, reversing a prior-year loss.

• Adjusted EBITDA reached $379 million (excluding FX), up 47% sequentially, with a margin of 16.3%.

• Major project awards in Guyana, Brazil, North Sea, and other regions reinforced market leadership.

• Upgraded to investment grade by Fitch and S&P, reducing financing costs and collateral requirements.

Financial highlights

• Q2 2024 revenue: $2.33 billion, up $353.4 million year-over-year; adjusted EBITDA: $379 million; margin: 16.3% (ex-FX).

• Subsea revenue: $2.01 billion, up 24.1% year-over-year; adjusted EBITDA: $357 million, margin 17.7%.

• Surface Technologies revenue: $316.5 million, down 10.5% year-over-year but up 3% sequentially; adjusted EBITDA: $46 million, margin 14.5%.

• Free cash flow: $180 million; cash and equivalents: $708 million; net debt: $260 million.

• Adjusted diluted EPS was $0.43, up from $0.22 in Q2 2023.

Outlook and guidance

• Subsea 2024 revenue guidance raised to $7.6–$7.8 billion; adjusted EBITDA margin to 16.5–17%.

• Surface Technologies 2024 revenue expected at $1.2–$1.35 billion; adjusted EBITDA margin 13–15%.

• Free cash flow guidance increased to $425–$575 million.

• Subsea orders expected to approach $10 billion for the year, with $30 billion targeted over three years ending 2025.

• Total company 2024 adjusted EBITDA now guided to ~$1.35 billion, up ~45% year-over-year (ex-FX).