TechnipFMC (FTI, Financial) announced its first quarter financial results, revealing revenues of $2.23 billion, slightly below market expectations of $2.25 billion. Despite this, the company showcased robust performance indicators that underline its growth trajectory.
In the first quarter, TechnipFMC's adjusted EBITDA reached $356 million, reflecting a significant 38% increase from the same period last year. This growth excludes the impacts of foreign exchange fluctuations, highlighting the company's operational strength and efficiency.
The company's free cash flow stood impressively at $380 million, which, along with solid cash flow from operations, underscores TechnipFMC's financial health despite seasonal challenges. This achievement marks a strong start to the fiscal year, demonstrating the company's unique capabilities and the substantial value it delivers to its clientele.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 23 analysts, the average target price for TechnipFMC PLC (FTI, Financial) is $34.57 with a high estimate of $43.00 and a low estimate of $24.00. The average target implies an upside of 38.10% from the current price of $25.03. More detailed estimate data can be found on the TechnipFMC PLC (FTI) Forecast page.
Based on the consensus recommendation from 24 brokerage firms, TechnipFMC PLC's (FTI, Financial) average brokerage recommendation is currently 2.0, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for TechnipFMC PLC (FTI, Financial) in one year is $26.40, suggesting a upside of 5.47% from the current price of $25.03. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the TechnipFMC PLC (FTI) Summary page.
FTI Key Business Developments
Release Date: February 27, 2025
- Total Company Revenue: $9.1 billion, a 16% increase year-over-year.
- Adjusted EBITDA: Nearly $1.4 billion, a 47% increase compared to the prior year.
- Free Cash Flow: $679 million, a 45% increase year-over-year.
- Shareholder Distributions: $486 million, nearly double the prior year.
- Subsea Inbound Orders: $10.4 billion, marking the fourth consecutive year with a book-to-bill greater than 1.
- Subsea Revenue Growth: 22% increase versus the prior year.
- Subsea Adjusted EBITDA Margin: 16.7%, up 340 basis points from the prior year.
- Surface Technologies Revenue: $319 million for the quarter, unchanged from the prior quarter.
- Surface Technologies Adjusted EBITDA Margin: 16.8%, up 150 basis points from the prior quarter.
- Quarterly Revenue: $2.4 billion.
- Quarterly Adjusted EBITDA: $354 million, excluding restructuring and other charges.
- Quarterly Free Cash Flow: $453 million.
- Net Cash Position: $272 million at the end of the period.
- Backlog: $14.4 billion at the end of the period.
- Investment Grade Rating: Upgraded by Moody's with a positive outlook.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- TechnipFMC PLC (FTI, Financial) reported strong financial performance for 2024, with total company inbound orders reaching $11.6 billion and a backlog of $14.4 billion.
- Subsea inbound orders increased to $10.4 billion, marking the fourth consecutive year with a book-to-bill ratio greater than 1.
- Total company revenue grew by 16% to $9.1 billion, and adjusted EBITDA improved by 47% to nearly $1.4 billion.
- The company achieved a 45% increase in full-year free cash flow to $679 million, returning $486 million to shareholders, nearly double the previous year.
- TechnipFMC PLC (FTI) continues to innovate with its iEPCI and Subsea 2.0 models, driving sustainable change in subsea economics and expanding market opportunities.
Negative Points
- Subsea adjusted EBITDA margin decreased by 180 basis points to 16.5% in the fourth quarter due to seasonally lower vessel-based activity and project mix.
- Surface Technologies revenue decreased by 9% for the full year, although it increased by 1% when excluding the impact of the sale of the Measurement Solutions business.
- The company faces challenges in maintaining its competitive edge in Brazil, where traditional installation contracts are not a priority.
- There is uncertainty in the North American market, with lower activity impacting Surface Technologies revenue.
- TechnipFMC PLC (FTI) is investing in an ERP upgrade program, which will increase capital expenditures in the short term.
