Technip Energies H1 2025 presentation: 15% revenue growth, raises TPS margin guidance

Introduction & Market Context

Technip Energies (PARIS:TE) presented its H1 2025 results on July 31, 2025, showcasing solid performance with significant year-over-year growth in key financial metrics. The company’s stock closed at €37.94, up 0.32% following the presentation, reflecting investor confidence in its execution strategy and market positioning. The results demonstrate Technip Energies’ continued momentum in both traditional energy markets and emerging decarbonization opportunities.

CEO Arnaud Pieton emphasized the company’s role in sustainable solutions during the presentation, stating, "TEN really is part of the solution," highlighting the importance of affordability in low-carbon technologies. The company’s performance comes amid growing global demand for LNG infrastructure and increasing investments in decarbonization technologies.

Financial Performance Highlights

Technip Energies reported strong financial results for the first half of 2025, with material year-over-year growth across key metrics. Revenue increased 15% to €3.6 billion (compared to €3.2 billion in H1 2024), while recurring EBITDA grew 13% to €319 million (up from €281 million).

As shown in the following summary of H1 2025 financial performance:

Free cash flow generation remained robust at €322 million, representing a 34% increase from H1 2024 (€241 million), with an impressive free cash flow conversion rate of 101% (up from 86% in H1 2024). The company’s backlog stood at €18.0 billion, providing multi-year visibility despite a slight decrease from the €19.6 billion reported at year-end 2024.

The detailed financial highlights reveal consistent performance across metrics:

Technip Energies maintained a strong balance sheet with net cash exceeding €1.6 billion, up from over €1.4 billion at the end of 2024. This financial strength positions the company well for future growth opportunities and strategic investments.

The company’s cash flow generation has been particularly impressive, as illustrated in this cash flow bridge:

CFO Bruno Vibert highlighted the company’s financial discipline during the presentation, noting, "We continue to deliver solid and consistent results," reinforcing Technip Energies’ track record of reliable performance.

Segment Analysis

Technip Energies’ performance varied across its two main business segments. The Project Delivery segment, which accounts for approximately 75% of revenue, saw a 24% increase in revenue to €2,736 million, driven by high activity on LNG projects in Qatar and the ramp-up of new projects including Ruwais LNG and GranMorgu.

The segment’s performance metrics are detailed below:

Despite the strong revenue growth, the Project Delivery segment experienced a slight margin compression, with recurring EBITDA margin decreasing to 7.8% from 8.3% in H1 2024. Management attributed this to a higher proportion of early-phase projects, which typically contribute limited margin.

In contrast, the Technology, Products & Services (TPS) segment demonstrated exceptional margin performance despite a 5% revenue decrease to €910 million:

The TPS segment’s recurring EBITDA increased 13% to €137 million, with margin expanding significantly to 15.1% from 12.7% in H1 2024. This strong performance was driven by ethylene furnaces deliveries, catalyst supply, and PMC activities, prompting management to raise the segment’s full-year EBITDA margin guidance.

Strategic Positioning & Growth Markets

Technip Energies highlighted its strategic focus on diversification, both in terms of markets and geography. The company’s order intake over the last six quarters shows a balanced portfolio, with 39% in decarbonization projects, 50% in energy, and 10% in energy derivatives. Geographically, approximately 70% of awards came from outside the Middle East, with Europe and the Americas each accounting for 30% of order intake.

The company’s order intake diversification is illustrated below:

The United States represents a significant growth opportunity for Technip Energies, particularly following the lifting of the LNG moratorium. The company emphasized its strong positioning in LNG, blue molecules, and CCUS projects in the US market, with established footprint and complementary business models.

Technip Energies’ US strategy is outlined in this slide:

In the LNG market, Technip Energies highlighted its leadership position, claiming over 35% market share in projects reaching Final Investment Decision (FID) between 2020 and 2025 year-to-date. The company’s differentiation in this space includes expertise in mid-to-mega-scale execution, floating LNG, modular offerings (like SnapLNG™), and decarbonization solutions.

The company’s LNG market positioning is shown here:

Decarbonization represents another key growth area for Technip Energies. The company presented its strategy for capturing opportunities in blue hydrogen, carbon capture, and sustainable aviation fuel (SAF) markets, all of which are expected to grow substantially by 2030.

The decarbonization market opportunity is detailed in this slide:

Outlook & Guidance

Based on the strong performance in the first half of 2025, Technip Energies updated its full-year guidance, raising the EBITDA margin target for the Technology, Products & Services segment to 14.0-14.5% from the previous guidance of approximately 13.5%. The guidance for the Project Delivery segment remained unchanged at approximately 8% EBITDA margin.

The updated guidance is presented below:

Looking ahead, Technip Energies expressed confidence in its order momentum, highlighting the major award for the world’s largest blue ammonia facility in the US (Blue Point Number One ATR project) and an attractive outlook for the second half of 2025 and beyond. The company emphasized its focus on disciplined operations, consistent free cash flow generation, and strategic capital allocation.

The key takeaways from the presentation summarize Technip Energies’ position:

Despite the positive outlook, the company faces potential challenges, including project execution delays, market saturation in LNG and carbon capture, macroeconomic pressures, regulatory changes in key markets, and supply chain disruptions. However, management expressed confidence in navigating these challenges through its diversified portfolio and strong financial position.

In conclusion, Technip Energies’ H1 2025 results demonstrate solid execution of its growth strategy, with strong financial performance and strategic positioning in high-growth markets. The company’s raised guidance for the TPS segment reflects confidence in continued strong performance, while its diversified backlog provides visibility for future growth.

Full presentation:

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