JPMorgan reiterates Overweight rating on TechnipFMC stock ahead of Q2

Published 03/07/2025, 14:32
JPMorgan reiterates Overweight rating on TechnipFMC stock ahead of Q2

Investing.com - JPMorgan has maintained its Overweight rating and $38.00 price target on TechnipFMC (NYSE:FTI), a $14.5 billion energy services company currently trading at $34.62, ahead of its second-quarter earnings report. According to InvestingPro data, the stock has delivered an impressive 20.1% return year-to-date and maintains a GREAT financial health score.

With earnings scheduled for July 24 and analysts maintaining a strong buy consensus, the investment bank expects TechnipFMC to deliver solid second-quarter results, forecasting EBITDA of $480 million, slightly above the Street estimate of $478 million. Get deeper insights into TechnipFMC’s financials with InvestingPro’s comprehensive research report, one of 1,400+ available for top US stocks.

For the Subsea segment, JPMorgan projects revenue of $2.16 billion, representing 12% sequential growth and 8% year-over-year growth, with EBITDA margins of 21.4%.

The Surface segment is expected to show 6% sequential revenue growth to $315 million with EBITDA margins of 15.5%.

JPMorgan’s analysis follows a meeting with TechnipFMC CEO Doug Pferdehirt at the bank’s 10th annual Energy, Power, Renewables, and Mining conference last week.

In other recent news, TechnipFMC reported its first-quarter earnings for 2025, revealing an earnings per share (EPS) of $0.33, slightly below the forecasted $0.35. The company’s revenue also fell short of expectations, coming in at $2.23 billion against a forecast of $2.26 billion. Despite these misses, the company maintains an optimistic outlook for 2025, expecting substantial inbound orders. TechnipFMC’s Annual General Meeting saw shareholders approve several key proposals, including the election of directors and executive compensation, with high approval rates. PricewaterhouseCoopers LLP was ratified as the company’s auditor, receiving over 99.5% approval. Additionally, the board was authorized to allot equity securities, reflecting shareholder confidence in the company’s governance. The company also highlighted strong free cash flow and strategic alliances, contributing to positive market confidence.

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