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Introduction & Market Context
Technip (EPA:FTI) Energies (PA:TE) presented its Q1 2025 results on April 30, showcasing strong financial performance despite ongoing global trade tensions and economic uncertainties. The company positioned itself as "a strong company in any scenario," highlighting its ability to navigate macroeconomic challenges while maintaining robust operational execution.
The engineering and technology company emphasized its strategic focus on energy transition projects, particularly in decarbonization and circularity, while continuing to leverage its core expertise in traditional energy markets. With a stock price near €30.90, Technip Energies has been trading close to its 52-week high of €31.92, reflecting investor confidence in its business model.
Quarterly Performance Highlights
Technip Energies reported impressive year-over-year growth across key financial metrics for Q1 2025. Revenue reached €1.9 billion, a 22% increase from €1.5 billion in Q1 2024. Recurring EBITDA grew by 19% to €162 million, while net profit rose to €101 million from €90 million in the same period last year.
As shown in the following financial highlights slide, the company maintained a solid EBITDA margin of 8.7%, though slightly down from 9.0% in Q1 2024, likely due to the changing project mix:
Diluted earnings per share improved to €0.56 from €0.50 in Q1 2024, representing a 12% increase. Free cash flow generation remained strong at €85 million, with free cash flow excluding working capital reaching €179 million, significantly higher than the €119 million reported in Q1 2024.
The company’s backlog stood at €18.2 billion at the end of Q1 2025, down 7% from €19.6 billion at the end of fiscal year 2024, but still providing substantial multi-year revenue visibility. Technip Energies also successfully refinanced its €750 million revolving credit facility in March 2025, further strengthening its financial position.
Segment Performance Analysis
Technip Energies’ business is divided into two main segments: Project Delivery and Technology, Products & Services, each showing distinct performance trends in Q1 2025.
The Project Delivery segment, which encompasses major engineering, procurement, and construction projects, demonstrated robust growth with revenue increasing by 34% year-over-year to €1.4 billion. This growth was primarily driven by high activity levels on LNG projects in Qatar and the ramp-up of new projects, including GranMorgu. Recurring EBITDA for this segment rose by 28% to €114 million, while maintaining a resilient margin despite the portfolio rebalancing toward early-phase projects.
The segment performance is illustrated in the following slide:
In contrast, the Technology, Products & Services segment experienced a 5% revenue decline to €450 million, attributed to reduced proprietary equipment contribution. However, the segment showed significant margin improvement, with recurring EBITDA increasing by 8% to €65 million and EBITDA margin expanding to 14.4% from 12.7% in Q1 2024. This improvement was driven by technology licensing and proprietary equipment deliveries in ethylene.
The following slide details the Technology, Products & Services segment performance:
Strategic Initiatives and Commercial Pipeline
Technip Energies highlighted its diversified commercial pipeline exceeding €70 billion, spread across multiple geographies and markets. The Middle East represents the largest geographic opportunity at 30%, followed by North America (21%) and Asia-Pacific/India (19%). By market segment, traditional energy projects account for 41% of the pipeline, while decarbonization initiatives represent 31%, reflecting the company’s balanced approach to energy transition.
The geographic and market distribution of the commercial pipeline is visualized in this slide:
A key strategic focus for Technip Energies is its digital acceleration program, which targets €100 million in annualized cost savings by 2028 and beyond. The company has launched 22 initiatives to date, with approximately 50% being AI-embedded or AI enablers, and has already approved €30 million in savings from these initiatives.
The company also showcased its involvement in significant decarbonization projects, including the Blue Point Number One Project in the US, described as the world’s largest low-carbon ammonia project with a capacity of approximately 1.4 million tons per annum and over 95% CO2 recovery.
The details of this landmark project are presented in the following slide:
Additionally, Technip Energies reported progress with its Reju technology, with TRL 7 validation scheduled for core technology by mid-year 2025. The company has completed site selection and pre-selection processes, with announcements expected in Q2 2025, and noted significant commercial interest in this initiative.
2025 Outlook and Forward Guidance
Technip Energies confirmed its 2025 guidance while updating segment revenue projections. For the Project Delivery segment, the company expects revenue between €5.2-5.6 billion with an EBITDA margin of approximately 8%. The Technology, Products & Services segment is projected to generate revenue of €1.8-2.2 billion with a higher EBITDA margin of approximately 13.5%.
The detailed 2025 outlook is presented in this comprehensive guidance slide:
The company’s management expressed confidence in its commercial momentum, noting that the extensive opportunity set across geographies and markets is expected to translate into improved award momentum from Q2 2025 onward. Technip Energies emphasized that its strong balance sheet, with €4.0 billion in gross cash and only €0.7 billion in gross debt, positions it well to capitalize on investment opportunities.
In summarizing the quarter, CEO Arnaud Pieton highlighted three key takeaways: solid first-quarter performance with year-over-year growth in revenue and EBITDA, continued commercial momentum with a diverse pipeline of opportunities, and the company’s strength in navigating any market scenario thanks to its extensive backlog and balance sheet strength.
With its balanced portfolio of traditional energy and decarbonization projects, strong financial performance, and clear strategic direction, Technip Energies appears well-positioned to continue executing its growth strategy throughout 2025 despite ongoing macroeconomic uncertainties.
Full presentation:
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