TechnipFMC PLC Earnings
TechnipFMC PLC concluded the fiscal year 2024 with a strong performance, demonstrating significant gains in revenue and net income. Total revenue for the fourth quarter stood at $2.37 billion, with a net income of $224.7 million, translating to an earnings per share (EPS) of $0.52. Adjusted for one-time items, net income was $236.2 million, or $0.54 per share, indicating the company's ability to consistently manage operational efficiencies and align with its strategic direction.
TechnipFMC PLC Results
The company's key financial metrics offer a comprehensive view of its solid performance throughout the year. Below is a detailed breakdown:
| Financial Metric | Q4 2024 | YoY Change | Full-Year 2024 | YoY Change |
|---|---|---|---|---|
| Total Revenue (in millions) | $2,367.3 | - | $9,083.3 | +16% |
| Net Income (in millions) | $224.7 | - | $842.9 | - |
| Earnings Per Share (EPS) | $0.52 | - | $1.91 | - |
| Adjusted Net Income (in millions) | $236.2 | - | $803.2 | - |
| Adjusted EPS | $0.54 | - | $1.82 | - |
| Adjusted EBITDA (in millions) | $351 | - | $1,351.1 | +47% |
These results are indicative of a thriving business poised to leverage its position in the energy sector with sustained revenue growth and expanding profitability margins.
Revenue Breakdown
For more granular insights, TechnipFMC segments its operations into two primary units: Subsea and Surface Technologies. Here’s a breakdown of their respective revenue performances for Q4 2024:
| Segment | Revenue (Q4 2024) | QoQ Change | Operating Profit (in millions) | QoQ Change |
|---|---|---|---|---|
| Subsea | $2,047.9 million | +1% | $230 million | - |
| Surface Technologies | $319.4 million | -0.3% | $36.5 million | +8.3% |
Subsea Segment: The Subsea division reported a 1% increase in revenue driven by heightened activity in the Gulf of America and Africa, although profits were slightly impacted by seasonal slowdowns and restructuring costs.
Surface Technologies Segment: Despite a slight decline in revenue, Surface Technologies saw an 8.3% increase in operating profits, largely due to higher project activity in international markets.
Key Developments
During the quarter, TechnipFMC achieved several notable milestones:
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Subsea Orders: The company reached a significant milestone with subsea inbound orders totaling $2.7 billion for the quarter. Notable projects include the TotalEnergies GranMorgu iEPCI™ project in Suriname and the Shell Bonga North project in Nigeria.
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Investment Grade Rating: TechnipFMC's credit rating was upgraded to investment grade by Moody's, reflecting the company’s strong financial position and future growth potential.
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Strategic Partnerships: TechnipFMC announced a collaboration with Prysmian to advance floating offshore wind projects, aiming to meet growing demands for renewable electricity and reinforce its commitment to energy transition.
Comments from Company Officers
CEO Doug Pferdehirt conveyed enthusiasm about TechnipFMC’s achievements, stating, "This was another year of tremendous success for the TechnipFMC team. We have achieved total company inbound orders of $11.6 billion for the full year, driving significant year-over-year growth in our backlog to $14.4 billion." He highlighted the strategic initiatives in the subsea division as a testament to the company’s differentiated value proposition.
Pferdehirt further articulated confidence in surpassing $10 billion in inbound orders for 2025, fueled by robust market visibility and a strong pipeline extending beyond historical horizons.
Dividends and Share Repurchases
In alignment with its commitment to shareholder returns, TechnipFMC repurchased 2.4 million of its ordinary shares during the quarter, amounting to $70 million. Additionally, dividends paid totaled $21.2 million, bringing total distributions for Q4 to $91.2 million. For the full year, shareholder distributions nearly doubled to $486 million.
TechnipFMC PLC Stock Forecast
Analysts anticipate that TechnipFMC's stock will continue to benefit from its strategic advancements and market positioning. With a last price of $0.1436 and a market cap of approximately $11.18 billion, the stock presents opportunities for growth, particularly with projections supporting inbound orders exceeding $10 billion in 2025. The stock could see favorable movements, with price ranges possibly reaching high projections of $0.16 to low projections around $0.13, grounded on fundamental performance and sector trends.
Conclusion:
TechnipFMC PLC has demonstrated robust operational and financial performance through its strategic focus on the subsea and surface technology segments. With a continued commitment to growth and shareholder returns, coupled with strengthened investment grade credentials, TechnipFMC appears well-positioned to capitalize on future energy market opportunities.
