GTT H1 2025 presentation: Revenue surges 32% amid strong LNG market demand

Gaztransport et Technigaz SA (EPA:GTT) reported robust financial results for the first half of 2025, with revenue climbing 32% year-over-year to €389 million and EBITDA soaring 49.2% to €264.5 million. The company’s performance was driven by strong demand in its core LNG business, strategic acquisitions, and continued technological innovation.

Quarterly Performance Highlights

GTT’s H1 2025 results demonstrated significant growth across most business segments. The company achieved an EBITDA margin of 68%, up from 60% in the same period last year, while net income increased by 5.7% to €180 million.

"We are reasonable people and cautious, but we have always been very bullish," stated GTT’s CEO during the earnings call, highlighting the company’s confidence in the LNG market’s long-term prospects.

The core business orderbook stands at 308 units, representing €1.7 billion in secured revenue. This includes 280 LNG carriers, 23 VLEC/ULEC vessels, 3 FSRU/FSU units, and 2 FLNG projects.

As shown in the following chart detailing GTT’s orderbook movements:

The company secured 17 new orders for its core business and 18 new orders for LNG as fuel in H1 2025. Despite 36 deliveries of LNG carriers during the period, the strong order intake has maintained a robust backlog.

GTT’s financial performance showed impressive growth across key metrics:

Revenue from newbuilds, which represents the largest portion of GTT’s business, increased by 34.6% to €364.8 million. The digital segment grew by 35.9% to €9.4 million, while services revenue rose by 10.8% to €12 million. However, the electrolyser business (Elogen) experienced a significant decline, with revenue falling 59.1% to €2.5 million.

Strategic Initiatives

GTT continues to strengthen its position through strategic acquisitions and technological innovation. A key development in H1 2025 was the acquisition of Danelec, a recognized player in maritime digitalization with approximately €44 million in annual revenue.

The acquisition significantly expands GTT’s digital capabilities, as illustrated below:

Danelec brings 15,500 installed base units and a global network of 14 hubs with 168 employees and over 700 certified technicians. The company generates 64% of its revenue from safety solutions and 31% from ship performance monitoring, creating significant synergies with GTT’s existing digital offerings.

GTT’s digital business has shown strong growth momentum, with revenue increasing by 36% year-over-year to €9.4 million in H1 2025 and gross margins improving to 57% from 48% in FY 2024:

The company continues to innovate with new Approvals in Principle (AiP) for key technologies, including Mark III Slim™ and NO96 Slim™ systems from Bureau Veritas, which offer increased tank capacity and faster construction. GTT also received AiPs from DNV for membrane tank design and from Lloyd’s Register for "NH3-Ready" notation, enhancing vessel flexibility and supporting lower-carbon energy transport.

Meanwhile, GTT is restructuring its Elogen electrolyser business to focus on R&D and high-power stacks production. This includes a workforce reduction plan affecting 110 positions out of 160, with H1 non-recurring costs of €45 million.

Market Outlook and Industry Position

The global LNG market continues to show strong growth potential, with central scenarios projecting approximately 6% CAGR from 2024 to 2030. This growth is supported by upward revisions to estimates from major industry analysts:

LNG is increasingly becoming the fuel of choice for shipping, with GTT noting that LNG fuel market share has increased to over 60% compared to alternatives like methanol:

The company highlighted that US LNG projects are driving the recovery in Final Investment Decisions (FIDs), with approximately 38 Mtpa sanctioned in 2025 so far:

New IMO regulations are also creating strong renewal incentives for older LNG carriers, with compliance costs expected to rise sharply by 2035. GTT notes that over 350 vessels could be impacted as early as 2028, strengthening incentives for fleet replacement:

Forward-Looking Statements

For the full year 2025, GTT provided positive guidance, projecting consolidated revenue between €750 million and €800 million and EBITDA between €490 million and €540 million. The company also committed to a dividend payout of at least 80% of consolidated net income.

Looking further ahead, GTT estimates it will secure more than 450 LNG carrier orders over the 2025-2034 period, along with 25-40 ULEC/VLEC units, up to 10 FSRU units, up to 10 FLNG units, and 25-30 onshore and GBS tanks.

Despite the positive outlook, GTT faces some challenges, including geopolitical tensions, US tariffs, and a US focus on domestic LNG carrier production. The company is also navigating the restructuring of its Elogen business amid disappointing performance.

GTT’s stock closed at €160.2 on October 14, 2025, down 0.81% for the session, but remains well above its 52-week low of €111.3 and near its 52-week high of €171.4.

With a strong orderbook, expanding digital capabilities, and favorable long-term market dynamics, GTT appears well-positioned to maintain its growth trajectory despite near-term challenges in specific business segments.

Full presentation:

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