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TechnipFMC PLC (NYSE:FTI) reported strong second-quarter 2025 results on July 24, highlighted by significant margin expansion and continued robust order intake. The company’s shares have continued their upward trajectory, closing at $33.59 prior to the earnings release, representing a 26% increase since their Q1 results in April.
Quarterly Performance Highlights
TechnipFMC delivered sequential revenue growth of 13% to $2.5 billion in Q2, with both segments contributing to the increase. The company reported adjusted EBITDA of $509 million, excluding foreign exchange impacts, while generating $344 million in cash flow from operations and $261 million in free cash flow.
"Subsea inbound exceeded revenue in 10 of the last 11 quarters," the company noted, highlighting the sustained demand for its offerings. TechnipFMC also announced a new strategic integrated Engineering, Procurement, Construction, Installation and Commissioning (iEPCIA) alliance with Vår Energi for developments on the Norwegian Continental Shelf.
As shown in the following financial results summary:
The company’s Subsea segment, which represents approximately 87% of total revenue, showed particularly strong performance with revenue of $2.2 billion, up 14% sequentially and 10% year-over-year. More impressive was the segment’s adjusted EBITDA margin, which expanded to 21.8% from 17.3% in the previous quarter and 17.7% in the same period last year.
Surface Technologies also demonstrated improvement with revenue increasing 7% sequentially to $318 million and adjusted EBITDA margin expanding to 16.4%, compared to 15.7% in Q1 2025 and 14.5% in Q2 2024.
Detailed Financial Analysis
TechnipFMC maintained its strong balance sheet position, ending the quarter with $950 million in cash and cash equivalents. The company continued to reduce debt, repaying 200 million euros of maturing debt during the quarter, bringing gross debt down to $696 million and maintaining a net cash position of $254 million.
The company’s cash flow dynamics are illustrated in this waterfall chart:
TechnipFMC continued its commitment to shareholder returns, distributing $271 million to shareholders during the quarter, including $250 million in share repurchases. This follows the positive momentum seen after Q1 results, when the stock rose 6.55% despite slight misses on EPS and revenue forecasts.
Order intake remained robust with total company inbound orders of $2.8 billion, including $2.6 billion in Subsea orders, representing a book-to-bill ratio of 1.2x. This continued strength in order intake has driven the total company backlog to $16.6 billion, with Subsea backlog growing to $15.8 billion, up 22% year-over-year and 6% sequentially.
The backlog scheduling provides strong visibility for future revenue, as shown in the following chart:
Strategic Initiatives
TechnipFMC highlighted the importance of its customer relationships and technology leadership, noting that iEPCIA, Subsea Services, and direct awards together accounted for more than 80% of orders in the quarter. The company also reported that Subsea Services inbound orders represented one of the highest levels ever achieved.
In Surface Technologies, the company has been implementing a business transformation strategy, reducing its North America footprint by 50% over the past three years while simultaneously improving operating margins and driving higher cash flow.
The company’s global opportunity pipeline remains robust, as illustrated in this world map of potential subsea projects:
"We remain confident Subsea orders will exceed $10 billion in 2025," the company stated, reinforcing the positive outlook provided in their Q1 earnings call when CEO Doug Ferdijerd emphasized, "We are not seeing a market downturn."
Forward-Looking Statements
TechnipFMC maintained its full-year 2025 financial guidance across all segments, projecting Subsea revenue between $8.4-8.8 billion with adjusted EBITDA margins of 19-20%, and Surface Technologies revenue of $1.2-1.35 billion with adjusted EBITDA margins of 15-16%.
The company’s consolidated guidance includes:
Free cash flow is expected to reach $1.0-1.15 billion for the full year, supporting continued shareholder returns and maintaining the company’s strong balance sheet position.
The robust backlog, particularly in Subsea where $4.8 billion is scheduled for 2026 and $7.5 billion for 2027 and beyond, provides TechnipFMC with significant revenue visibility for the coming years, supporting the company’s confidence in its long-term growth trajectory.
Full presentation:
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