TechnipFMC (FTI) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue rose to $2.35 billion, up 14.2% year-over-year, with net income reaching $274.6 million, driven by strong Subsea performance and record backlog of $14.7 billion, including $13.7 billion in Subsea.

• Subsea inbound orders reached $2.5 billion, with a book-to-bill ratio of 1.2, and major contract awards from Petrobras and bp Kaskida.

• Share repurchase authorization increased by $1 billion, totaling $1.2 billion, with a target to nearly double 2024 shareholder distributions.

• Completed sale of Measurement Solutions business in March 2024, recognizing a $75.2 million gain.

• Opened a new facility in Saudi Arabia, supporting Middle East growth and project execution.

Financial highlights

• Q3 2024 revenue: $2.35 billion (+14.2% YoY); net income: $274.6 million (+205% YoY); adjusted EBITDA: $389 million (16.6% margin, excluding FX); diluted EPS: $0.64.

• Subsea Q3 revenue: $2.03 billion (+18.7% YoY); adjusted EBITDA: $371 million (18.3% margin); Surface Technologies Q3 revenue: $320 million, adjusted EBITDA: $49 million (15.3% margin).

• Free cash flow for Q3: $225 million; cash and equivalents at $837 million; net debt at $(129) million.

• Shareholder distributions in Q3 totaled $101 million, with $80 million in share repurchases; YTD distributions reached $395 million.

• Adjusted net income for Q3: $280.5 million; adjusted diluted EPS: $0.64.

Outlook and guidance

• 2024 Subsea revenue guidance: $7.6–$7.8 billion, adjusted EBITDA margin 16.5–17%; Surface Technologies: $1.2–$1.35 billion, margin 13–15%.

• 2025 Subsea revenue guidance raised to $8.3–$8.7 billion, with adjusted EBITDA margin of 18.5–20%.

• Free cash flow for 2024 projected at $425–$575 million.

• Tax provision guidance for 2024 reduced to $170–$180 million, reflecting a $60.6 million valuation allowance release.

• Confident in achieving $30 billion Subsea inbound orders over 2023–2025.