Earnings call transcript: Technip Energies Q3 2025 results miss forecasts

Technip Energies reported its Q3 2025 earnings on October 30, revealing revenue and earnings per share (EPS) that fell short of analysts’ expectations. The company reported an EPS of 0.5981 euros, missing the forecast of 0.6287 euros. Revenue reached 5.4 billion euros, a 9% increase year-over-year, but below the forecast of 1.87 billion euros. Consequently, the stock price dropped 7.74% in pre-market trading.

Key Takeaways

• Technip Energies’ Q3 revenue increased by 9% year-over-year.
• EPS missed expectations with a modest 2% increase.
• The stock price fell by 7.74% following the earnings release.
• The company confirmed its full-year 2025 guidance.
• Technip Energies continues to focus on energy transition projects.

Company Performance

Technip Energies reported a strong year-over-year revenue increase of 9% for Q3 2025, reaching 5.4 billion euros. The company maintained an EBITDA margin of 8.8%, consistent with the previous year. Despite the positive growth in revenue, the company’s EPS showed a modest 2% increase, which did not meet market expectations. The strong backlog of over 15 billion euros signifies a stable business foundation, representing more than three times the 2024 segment revenue.

Financial Highlights

• Revenue: 5.4 billion euros, up 9% year-over-year
• Recurring EBITDA: 478 million euros, up 9% year-over-year
• EBITDA Margin: 8.8%, stable year-over-year
• Free Cash Flow Conversion: 87%
• EPS: 0.5981 euros, a 2% increase

Earnings vs. Forecast

Technip Energies reported an EPS of 0.5981 euros, falling short of the forecasted 0.6287 euros, resulting in a surprise of -4.87%. The revenue of 5.4 billion euros also missed the forecast of 1.87 billion euros, with a surprise of -5.35%. This marks a deviation from the company’s typical performance, where earnings generally align more closely with market expectations.

Market Reaction

Following the earnings release, Technip Energies’ stock price dropped by 7.74% to 37.22 euros in pre-market trading. This decline reflects investor disappointment with the earnings miss and revenue shortfall. The stock remains within its 52-week range, with a high of 42.82 euros and a low of 20.98 euros, but the recent dip highlights market concerns.

Outlook & Guidance

Technip Energies confirmed its full-year 2025 guidance, expecting TPS revenues at the lower end of the 1.8 to 2.0 billion euro range. The company anticipates ethylene order intake in 2026 and potential sustainable aviation fuel (SAF) project opportunities in Q4 2025. The focus remains on decarbonization and energy transition efforts.

Executive Commentary

CEO Arnaud Pieton emphasized the company’s strategic positioning, stating, "We are naturally hedged and positioned to thrive in any energy scenario." He also highlighted the ongoing trend towards decarbonization, describing it as "a game of resilience."

Risks and Challenges

• Delayed LNG final investment decisions (FIDs) could impact future growth.
• Market dynamics in the TPS segment may affect revenue targets.
• Supply chain disruptions could pose operational challenges.
• Economic uncertainties might influence investment in energy transition projects.
• Competitive pressures in the advanced materials and catalysts market.

Q&A

During the earnings call, analysts inquired about the delayed LNG FIDs and market dynamics, seeking clarity on the TPS segment’s performance and future outlook. Questions also focused on the strategy behind the AM&C acquisition and investments in green technologies like Rejoule.

Full transcript - Technip Energies BV (TE) Q3 2025:

Maria, Conference Operator: Good afternoon, this is the conference operator. Welcome and thank you for joining the Technip Energies third quarter 2025 results conference call. As a reminder, all participants are in listen-only mode. After the presentation, there will be an opportunity to ask questions by pressing Star and 1 on your telephone. At this time, I would like to turn the conference over to Phil Lindsay, Head of Investor Relations. Please go ahead, sir.

Arnaud Pieton, CEO, Technip Energies: Thank you, Maria. Hello and welcome to Technip Energies’ financial results.

Bruno Vibert, CFO, Technip Energies: For the first nine months of 2025.

Arnaud Pieton, CEO, Technip Energies: On the call today, our CEO Arnaud Pieton will discuss our nine month performance and business highlights. This will be followed by CFO Bruno Vibert.

Bruno Vibert, CFO, Technip Energies: Vibert who will discuss our financials.

Arnaud Pieton, CEO, Technip Energies: Arnaud will then return for the outlook and conclusion before opening for questions.

Bruno Vibert, CFO, Technip Energies: Before we start, I would urge you.

Arnaud Pieton, CEO, Technip Energies: To take note of the forward-looking statements on slide 3. I will now pass the call over to Arnaud. Thank you, Phil, and welcome everyone to our results presentation for the first nine months. Let me begin with the key highlights. I am pleased to report that Technip Energies has delivered a solid financial performance for the first nine months of this year. We recorded year-over-year revenue growth of 9%. We’ve maintained strong profitability, and we generated a significant uplift in free cash flow. These results reflect our disciplined execution, the strength of our asset-light business model, and the commitment of our teams worldwide. Based on these results, we confirm our full-year guidance. On the commercial front, we strengthened our global leadership in LNG and modularization. Notably, we were awarded a major contract in the U.S.

for Commonwealth LNG using our modular SnapLNG solution, a topic I will expand upon shortly. Finally, in line with our strategy to enhance our technology, products, and services segmentation, we announced the acquisition of EcoVyst’s Advanced Materials & Catalysts. The transaction broadens our capabilities across the catalysts value chain and, upon completion, will be immediately accretive to T.EN’s financial profile. Turning now to our theme for 2025 and our foremost priority: execution on project delivery portfolio. It continues to deliver solid progress as evidenced by year-to-date revenue trends and margin resilience. We are transitioning into pre-commissioning activities for the first of our four trains on the NFV project. Simultaneously, we are intensifying activities on the adjacent project NFS, which continues to ramp up.

Alongside this progress, we are advancing towards completion of downstream projects, including the Assiut Clean Off Fuels refinery in Egypt and the Borouge ethylene plant in the UAE. In TPS, we have been achieving important milestones across a range of decarbonization projects. We have successfully started up the first plant deploying our innovative Canopy by T.EN solution for carbon capture in Norway, and for the TPS scope of Net Zero Teesside, we are progressing with a CO2 absorber module fabrication at our facility in India. In summary, the third quarter has seen strong execution across important energy and decarbonization contracts. Let me now provide an update on our recent commercial successes, which have further cemented T.EN’s global leadership in LNG and modularization. I am delighted to confirm that we signed another major LNG contract in the U.S. with Commonwealth LNG.

This milestone follows the execution by Technip Energies of the front end engineering and design. The delivery model for Commonwealth LNG leverages SnapLNG by Technip Energies, our innovative modular, pre-engineered, and standardized solution. The Commonwealth LNG facility will feature six identical liquefaction trains to deliver a total capacity of 9.5 million tonnes per annum. We have initiated the project under a limited notice to proceed, which allows us to begin preliminary activities such as placing purchase orders for key equipment. It is important to note that the full value of this contract will only be reflected in our order book upon issuance of the full notice to proceed, at which point it will make a significant contribution to the company’s backlog. In conclusion, a very positive development for Technip Energies, one that enables us to enter the U.S.

LNG market on our own terms through early engagement, the application of modular solutions, and a disciplined contractual approach. Beyond our recent success in the U.S., I would like to draw attention to several other important awards in LNG and circularity markets. First, our position as a leader in deep offshore floating gas liquefaction has once again been reaffirmed. In August, we secured a large contract for Coral Norte, a floating LNG unit in Mozambique for Eni. This initial scope covers preliminary activities with further order intake anticipated upon full contract award. Second, our early engagement approach continues to be a cornerstone of our success. It positions us strongly for future awards and helps de-risk project execution.

In line with this strategy, we have been awarded two FEED contracts for the Abadi LNG development in Indonesia for INPEX, first for the liquefaction facilities to deliver annualized production of 9.5 million tonnes, and the second is for the modularized floating gas infrastructure. We remain very confident in our medium-term outlook for further LNG awards. Lastly, we have secured a key service role for the Ecoplanta waste-to-methanol project in Spain for Repsol. This award builds on the strategic collaboration between Technip Energies and Enerkem and illustrates the strength of the partnership in accelerating the deployment of circular solutions at scale. Turning now to September’s announcement of the acquisition of EcoVyst’s Advanced Materials & Catalysts (AM&C). The acquisition supports Technip Energies’ strategy for disciplined growth of our TPS segment. It demonstrates our value-driven approach to M&A. It is financially accretive and it benefits from positive long-term market trends.

It will bring in differentiated capabilities in Catalyst Technologies and Advanced Materials, enhancing our ability to deliver high-performance process-critical solutions to our clients. It also adds a new dimension to our Catalyst business, unlocking avenues for product development and market expansion. Post completion, a talent pool of 330 people will join Technip Energies, bringing complementary skills and expertise into the company, and we will ensure the entrepreneurial culture and business momentum of AM&C is preserved through the integration process. Now, importantly, the deal will have no impact on our investment grade credit rating. T.EN will retain a substantial net cash position, providing capital allocation flexibility for other opportunities. Before passing to Bruno to review our nine-month performance, I’d like to take a moment to outline how the AM&C acquisition will, following completion, materially enhance our TPS offering across the asset lifecycle.

With Catalyst IP at the core of many process technologies, catalysts serve as a key differentiator in process technology development and are highly complementary to our existing offerings. One of the compelling aspects of catalysts is their consumable nature, which opens multiple recurring revenue streams throughout the OPEX phase where T.EN would typically sell a process technology once per project. Catalysts are replenished multiple times throughout the lifespan of a plant. As such, around 70% of AM&C revenues are tied to operating expenditures, which will improve our long-term revenue visibility. In terms of financial impact, the addition of AM&C will increase the technology and product component of our TPS revenues from 40% to over 45% based on 2024 pro forma. Furthermore, AM&C generates EBITDA margins substantially higher than our TPS segment.

In summary, the transaction is all about advancing TPS, accelerating its growth, enhancing profitability, and providing T.EN with a platform to unlock further value for all stakeholders. I will now pass to Bruno to discuss the financials.

Bruno Vibert, CFO, Technip Energies: Thanks Arnaud. Good morning and good afternoon everyone. I am pleased to present the key highlights of our solid financial performance for the first nine months of 2025. Reported on an adjusted high press basis, our revenue is increased by 9% year over year reaching €5.4 billion. This growth was underpinned by strong activity levels across our LNG portfolio and offshore projects. Recurring EBITDA rose also by 9% to €478 million, delivering a healthy margin of 8.8% which is stable versus last year. The improvement in TPS profitability was notable, although it was offset by a rebalancing of the Project Delivery portfolio towards more early stage work. EPS recorded a modest increase of 2% year over year, supported by strength in EBITDA.

This was partially offset by lower financial income and an increase in non-recurring costs mainly attributable to planned investment in Rejoule and other strategic initiatives which are more capital allocation in nature. Excluding these strategic investment costs, EPS growth would have been double digit. Free cash flow conversion from EBITDA remained robust at 87%. This strong conversion rate supported free cash flow growth in the mid-teens compared to last year. In summary, a very solid first nine months and I’m pleased to confirm that we are on track to achieve our full year guidance. Turning to the performance of our segments, let me begin with Project Delivery. Revenues have grown substantially, rising by 16% year over year to reach €4.1 billion. This uplift has been driven by strong activity across LNG projects and growth in contribution from recently awarded projects including Grand Morgu and Net Zero Teesside.

On profitability metrics, both recurring EBITDA and EBIT have recorded strong increases with growth rates at or approaching double digits. Recurring EBITDA margins experienced a modest contraction of 30 basis points year over year. This movement primarily reflects portfolio rebalancing with a higher proportion of early phase projects which typically contribute limited margin at this stage. We continue to see the full year EBITDA margin to be consistent with the nine month performance at around 8%. Finally, our backlog remains reassuringly strong at over €15 billion, equating to more than three times our 2024 segment revenue. This resilience persists despite the absence of major awards during the third quarter and the impact of adverse foreign exchange movements. Encouragingly, our commercial pipeline remains well populated with good proximity to major awards in the coming months and quarters.

In summary, Project Delivery continues to demonstrate robust momentum underpinned by solid revenue growth, a healthy backlog, and very strong positioning for future opportunities. Turning now to our Technology, Products and Services segment, TPS, TPS revenues declined by 9% year over year. Strong volumes in consultancy services and studies and ramp up of assembly on our carbon capture product were more than offset by a lower contribution from our ethylene furnace deliveries. Additionally, foreign exchange movement had a significant impact on our revenues. In fact, approximately half of the overall revenue decline can be attributed to these currency effects, with the weaker U.S. dollar being a notable factor. Despite the reduction in revenue, recurring EBITDA increased by 6% year over year, driven by an impressive 200 basis point margin expansion to 14.8%. This improvement was driven by a strong performance in our product activities.

Furthermore, catalyst supply and strength in project management consultancy also contributed to this margin expansion. Looking at our order intake, the book-to-bill ratio on a trailing twelve month basis remains above 1, which is a positive indicator. Nevertheless, commercial activity through 2025 has been affected by the broader macroeconomic environment, leading to some delays in the awarding of several anticipated larger products and services contracts. As a result, TPS backlog has reduced by 16% since the start of the year, standing at $1.7 billion as of period end. Despite these short term headwinds, our teams are actively engaged with clients and we see a healthy pipeline of tangible opportunities across our core markets. Turning to other key financial metrics, beginning with the income statement, corporate costs for the first nine months of 2025 totaled $46 million with a return to a more normalized pattern in Q3.

Following the specific factors that impacted long term incentive plans in the first half of the year, net financial income remains very positive at $70 million but trending modestly lower compared to the prior year, aligned with a broader movement in global interest rates. Finally, on the P&L, non-recurring expenses have increased year over year, presenting a headwind to our EPS growth. As I highlighted last quarter, the majority of these costs are associated with capital allocation decisions. Approximately $35 million relates to the investment in adjacent business models including Rejoule, as well as strategic initiatives such as M&A activity. Moving on to the balance sheet, our financial position remains very healthy. Key line items including cash, debt, and net contract liability are stable compared to our year-end position. Before handing back to Arnaud, let’s take a closer look at our cash flows.

Free cash flow excluding working capital totaled $460 million for the first nine months, corresponding to a robust cash conversion from EBITDA of 87%. This strong result underscores our disciplined execution, the strength of our asset-light business model, and a favorable contribution from net financial income. Working capital year to date is slightly positive. Capital expenditure at $60 million was modestly up compared to last year. The main investments were directed towards the ongoing expansion of our Dahej facility in India as well as the continued modernization of our facilities and labs. Finally, despite a foreign exchange impact of $201 million, cash and cash equivalents at the end of September stood at $4.1 billion, which is consistent with the year-end position. With that, I now hand back the call to Arnaud.

Arnaud Pieton, CEO, Technip Energies: Thank you, Bruno. Turning now to our outlook. Last November at our Capital Markets Day, I spoke about the global megatrends of population expansion, urbanization, and rising economic output, all driving demand for more energy and infrastructure. I talked about the need to supply more energy derivatives like fertilizers and plastics, and about producing more with less emissions and less waste. In other words, the critical need for pragmatic decarbonization with greater circularity. Despite the macroeconomic and geopolitical backdrop, these trends are robust and enduring. As Technip Energies has the solutions to these challenges, we see opportunities across our markets to build upon our growth potential. Traditional energy sources, particularly natural gas, continue to play a vital role in ensuring energy security and affordability for the foreseeable future.

This reality is creating compelling opportunities for Technip Energies in the near, medium, and long term horizons, notably in LNG and selective offshore developments. The chemical sector, especially ethylene, where Technip Energies is a leader, is seeing early signs of recovery. Plans for greenfield projects and retrofit work are firming up with major investments ahead, notably in markets like India. In decarbonization, the blue molecule space is already a source of opportunity for Technip Energies, while carbon capture remains the preeminent solution for decarbonizing many sectors, notably power generation and cement. In summary, Technip Energies remains opportunity rich, naturally hedged, and positioned to thrive in any energy scenario. To conclude, our performance for the first nine months delivered solid year-over-year growth in revenue, EBITDA, and free cash flow. We have very notable near-term prospects with potential to strengthen our medium-term outlook.

We have excellent visibility for 2026 with already close to $7 billion scheduled for execution next year. As we pursue further growth, we remain disciplined in managing the company’s capital allocation and our cost base. We are focused on building for the long term, investing to enhance our differentiation, and delivering value creation for our shareholders. With that, we can now open for questions.

Maria, Conference Operator: Thank you. This is the conference operator. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on the telephone. To remove yourself from the question queue, please press star and two. Please pick up the receiver when asking questions. Anyone who has a question may press star and one at this time. The first question is from Sebastian Erskine of Rothschild and Cortburn.

Bruno Vibert, CFO, Technip Energies: Hi, good morning gentlemen. Thanks for taking my questions. The first one just on TPS.

Arnaud Pieton, CEO, Technip Energies: The performance so far has been.

Bruno Vibert, CFO, Technip Energies: Thinking about for full year looks towards the bottom end of the $1.8 to $2 billion point. I’d be appreciating to get your thoughts on specifically what’s kind of disappointed year to date versus your expectations. I was intrigued to note in the presentation you mentioned kind of early signs of recovery in ethylene. I was thinking kind of given the supply of polyolefins driven by China and some kind of supply consolidation in Europe.

Arnaud Pieton, CEO, Technip Energies: North America, it appears a difficult market. I appreciate some more details on that and what you’re seeing so far.

Bruno Vibert, CFO, Technip Energies: Thank you.

Arnaud Pieton, CEO, Technip Energies: Thank you, Sebastian. Let’s start with the TPS performance. I’ll start with making a bit of a statement in a sense that, yeah, TPS 2025 is a bit of a blip. We may call it this way in a sense. I’ll remind everyone of a few things. Technip Energies, we were created in 2021, and since our creation we have dedicated investment and R&D effort to low-carbon solutions. We have invested with notable successes and continued successes to bring to the market new solutions. Those solutions were mostly in future growth markets such as SAF, carbon capture, circularity, for example. It’s fair to say that the environment in 2025 hasn’t really been supportive of more CapEx in those areas. When I look at what is coming our way, I must say that the trend is undisputed. It’s a bit of a game of resilience.

We as a company must find the right solution, make them investable and affordable for our clients and everyone around. In the short term this has impacted 2025. You’ve heard from Bruno, the services part of our TPS segment has remained really strong. The blip or the disappointment is more coming from the amount of CapEx in solutions for decarbonization and SAF and carbon capture in 2025. We remain extremely confident for the future. Again, the trend is undisputed.

Bruno Vibert, CFO, Technip Energies: So.

Arnaud Pieton, CEO, Technip Energies: I will take advantage of your question and my answer to your question to also state that in the short term this CapEx trend for low carbon solution may impact the growth momentum for TPS in 2026 as well. In the same way as we have been trending towards the bottom end of the 2025 guidance for this year, I think it might be fair to consider that the same trend will apply to 2026. Maybe calling for a bit of re-baseline for TPS towards the bottom half of the 2025 guidance for 2026 on a pure organic basis. I’ll take advantage of your question as well to remind everyone that during our capital market that we needed to continue to invest in our traditional market.

In 2026 you will see, I would say, a larger share of our R&D investment being directed towards what people may consider more traditional markets. A bit less decarbonization and a bit more ethylene maybe. Even though even in ethylene we are innovating through low-emission ethylene furnaces and we continue to invest in all markets. Hence also the acquisition of AM&C, which covers both the traditional and the future growth market. The important is maybe a little bit of a blip in terms of the top line.

Bruno Vibert, CFO, Technip Energies: TPS should not be about top.

Arnaud Pieton, CEO, Technip Energies: Line, it should be about bottom line. We are delivering on the bottom line for TPS as well as for the whole company. It highlights again the benefits of our model, which combines long cycle project delivery and a short cycle TPS. I think it speaks to the strength of the company overall in terms of ethylene. Yeah, indeed we see an increased visibility on ethylene, and we are anticipating order intake in 2026 based on our various discussions with a series of clients. This includes green and brownfield opportunities. The key ethylene opportunities with technology and license selections will happen as early as Q4 2025, in the weeks to come. Of course, if it’s pure techno license selection, it will not have a significant impact to our order intake just yet, but it will follow with potential proprietary equipment award in 2026.

This will be more clearly visible in our order intake for TPS next year. The main areas, as indicated, are India, Middle East, China, and Africa. The global ethylene industry today has a capacity that is north of 200 million metric tonnes per annum. Ethylene is GDP led, and with the expansion driven by demand in packaging, construction, automotive, and consumer goods sectors, the global growth forecast at 3 to 4% per annum of this GDP would see the industry capacity grow to north of 300 million metric tonnes per annum by 2040. There is a large volume of work that is required in terms of greenfield and brownfield in the ethylene sector. We are starting to see those early signs of work and recovery coming our way. Really appreciate the color there.

Bruno Vibert, CFO, Technip Energies: I’ll hand it back. Thank you.

Maria, Conference Operator: The next question is from Bertrand Hodee of Kepler Cheuvreux.

Bruno Vibert, CFO, Technip Energies: Yes, hello everyone. I have many questions on your LNG potential awards. You’ve been highly successful commercially, yet there are significant awards that are not yet in the backlog. Can you give us some color on U.S. Commonwealth LNG? Specifically, you’ve been awarded limited notice to proceed. The project is very close to FID but had a setback two weeks ago in terms of permitting in Louisiana. Maybe you can share your view on that and also whether you think that the client could be in a position of taking FID without having this permit on board. If you can give us some color also on Coral Norte, why it’s not, I’d say, in the backlog as Eni has taken full FID. Probably the last one to make the world tour on Rovuma LNG. It looks like Exxon is targeting now an FID in Q1.

Can you confirm that you’ve performed the FEED and that the FEED is complete, and probably if you can also give us some color on the FEED, whether it is on a SnapLNG concept or not.

Arnaud Pieton, CEO, Technip Energies: Thank you. Thank you, Bertrand. I’ll start with stating that our overall environment and commercial pipeline has not really changed. You’re right to say that we haven’t seen large awards in Q3 or even through 2025 with the exception of our very large, I mean the largest blue ammonia plant in the U.S. that we signed in Q1, but 2025, we always stated that it would be a year of execution and that not controlling the FID awards could come very late in 2025 or could actually be in 2026. The long term fundamentals and the medium term fundamentals of our markets really remain strong. The commercial pipeline has not weakened at all.

It’s not the first year in 2025 where we are seeing a bit of a weak order intake until FIDs are coming, in which case all of a sudden there is a very nice spike of new awards coming to making it to our backlog. Specifically on Commonwealth LNG, first of all the team is mobilized, we are progressing the work through limited notice to proceed and we continue to be very confident with the project. We obviously don’t control the FID, whether it’s this quarter or next makes very little difference for us. We continue and our client is very confident that they can address a small concern that was maybe caused by a permit situation, but they are very confident that there is no impact whatsoever on their path to FID from this permit vacation.

I will also state that earlier this year the project was really strengthened with Mubadala Energy agreeing to acquire about 25% stake in, so it’s giving a lot of credibility to this project and all. Our contract with Commonwealth LNG also allows for, I would say, a next or an extended limited notice to proceed. If the FID is not reached in the weeks or months to come or before year end, we will enter into another phase of limited notice to proceed with, I would say, more money being spent and more investment being made into the project and the team continuing to progress the project. What you’re hearing from me is a high level of confidence in this project because of its progress, its stakeholders, and the money that is flowing into progressing the work at this stage. On Coral floating LNG, why not in the backlog?

There has been a lot of press about this. One FID has been taken, it’s not yet in the backlog because there’s a bit of an administrative technicality that needs to happen for the full notice to proceed to be provided. In other words, there’s a bit of SPV or special purpose vehicle in Mozambique that needs to be formed, and we will receive our purchase of the order, if I may say, from this SPV. It’s a pure administrative exercise, and we are very confident that it will happen in the early part of next year. It will come into join our backlog by then. On Rovuma LNG, a very exciting project for Exxon in Mozambique, we have indeed executed the FEED. Therefore, following our guiding principles, we are competing for the project execution. It’s a competitive process, as you know, it’s all over the place.

Our association with JDC is competing against another consortium or JV, and we are in, I would say, final stage of finalizing our price that will be submitted to Exxon in the weeks to come. The concept that is selected is, I would say, very similar to SnapLNG, even though it’s not totally SnapLNG, because there are a few variations in technologies, but nothing major. It’s a concept that we like and that we know really well now because we worked on the FEED for the past couple of years.

Bruno Vibert, CFO, Technip Energies: Thank you. Just a very small follow-up, obviously there are some market concerns on the low level of revenues for TPS in Q3. I noted that you have $480 million something of revenue for execution for TPS in Q4. It looks to me that something around $500 million or even above is likely within reach for Q4 for TPS now.

Arnaud Pieton, CEO, Technip Energies: Yes, that’s why you’ve heard from Bruno and myself that we are confirming guidance for the year. We will be within the range that we provided for 2025. Absolutely.

Bruno Vibert, CFO, Technip Energies: Thank you very much.

Maria, Conference Operator: The next question is from Alejandra Mangana of JP Morgan. Hi, thank you for taking my questions. Just two quick ones from my end. After the EcoVyst AM&C deal, are you seeing other bolt-on opportunities at similarly attractive multiples, or does it make more sense to focus on integration before adding more? My second one, what is the current share of recurring technology and services within TPS currently?

Arnaud Pieton, CEO, Technip Energies: Hi Alejandra. Good afternoon. To start, I’ll start with AM&C and then I’ll hand over to Bruno on the level of recurring revenue within TPS. So, AM&C is a super attractive acquisition that we are making. We are focusing in the short term on integration, of course, first of all on the closing and then on the integration. Now, I want to characterize a little bit AM&C. AM&C is a business that is, first of all, self-sufficient and performing. That’s why in my prepared remarks I really insisted on the fact that we will be focusing on making sure that we are, through integration, maintaining AM&C’s ability to operate and be, I would say, entrepreneurial and provide them with the means to invest. There isn’t, I would say, too much integration to do and therefore I think this speaks in favor of preserving nicely AM&C’s ability to perform.

This addition actually opens the door to more avenues and things we can now contemplate to complement the AM&C offering. It’s probably not the end of the journey. With always some prerequisites at Technip Energies, we want to preserve investment grade. We will remain selective and disciplined and our M&A targets are focusing on techno product and catalyst and maybe opportunistic in services. The technology has our priority. We are contemplating adding complementary technologies and solutions to AM&C and our existing portfolio. Yes, we continue to scout like any good and healthy company is probably doing. We feel really good about AM&C in particular as there isn’t a massive or any thought of integration to do. We will preserve the AM&C object, if I may say, once it is part of the Technip Energies family. Bruno on the yeah, sure.

Bruno Vibert, CFO, Technip Energies: Hi Alejandra. On the recurring revenue aspect and contribution within TPS, to your point and as Arnaud mentioned in his remark, one of the attributes for INMC and the quality of earnings was the fact that this was 70% OPEX related in terms of revenue generation, which is for us something which is interesting because today we would be far below in terms of this when it gets to the current TPS portfolio in terms of services. We may have a few master service framework and we may have very limited operation and maintenance services. The bulk of our services are really associated to new CapEx and in the variations of revenues that we’ve seen this year. The 9% reduction of TPS, as I said, part of it, almost half of it is FX.

A significant component was the fact that over the last couple of years we’ve had a low petrochemical cycle, so ethylene cycle, which has resulted to some extent in this movement. For us, as explained in the CMD, the replication of the ethylene model was, I think, a good way for us that we were less dependent on the cycle. To have carbon capture, sustainable fuel, circularity, all these are building blocks to make us a bit less dependent on one industry cycle. Second, to your point, yes, having a bit more exposure to the OPEX element, such as the catalyst and what it brings in terms of proximity to clients, that’s an interesting bolt-on and add-on as a platform to our revenues. That will absolutely increase the quality of earnings of TPS.

Maria, Conference Operator: Thank you. The next question is from Richard Dawson of Berenberg.

Bruno Vibert, CFO, Technip Energies: Hi, good afternoon, and thank you for taking my questions.

Arnaud Pieton, CEO, Technip Energies: have just a couple of follow ups from my side.

Bruno Vibert, CFO, Technip Energies: Margins and TPF actually have been.

Arnaud Pieton, CEO, Technip Energies: Running above the top end of guidance year to date.

Bruno Vibert, CFO, Technip Energies: Clearly had a very strong result in Q2, but looking into Q4, do you still see pretty good sort of solid margins there for TPS? Secondly, on just coming back to the U.S. LNG opportunities, and particularly late, Charles, we saw the client delay FID to Q1 2026, which to your.

Arnaud Pieton, CEO, Technip Energies: Point, doesn’t really matter for earnings estimates going forward.

Bruno Vibert, CFO, Technip Energies: Does this have anything to do?

Arnaud Pieton, CEO, Technip Energies: With the price refresh campaign on that project?

Bruno Vibert, CFO, Technip Energies: Thank you. Maybe I. Richard, I’ll start with the first question and I think Arnaud will cover the second one. On TPS margin, yes, to your point, we’ve seen high margin. That’s why at the end of H1 in July we upgraded guidance in terms of EBITDA percentages and we’re absolutely on track there. It was the outcome of good performance from the services aspect of TPS. You should absolutely expect this to continue and the fact that by the delivery of the furnaces and all that, we had a bit less contribution from the top line, but then more contribution from the bottom line, as Arnaud mentioned. I think the trajectory and with the kind of re-baseline we are on the same track, it’s in continuity.

Yes, although revenues are expected to pick up from TPS in Q4 versus Q3 in terms of bottom line, the bottom line of TPS should continue to be strong. When the closing of AM&C is done, we will have further upside coming from the contribution from AM&C, which will be further improvement of TPS margin.

Arnaud Pieton, CEO, Technip Energies: Hey Richard, on U.S. LNG and your follow-up question. We have two opportunities in the U.S. on LNG. The first one, which I discussed a bit earlier, is Commonwealth, and we have a team already mobilized and working under this limited notice to proceed. By the way, this limited notice to proceed is the same avenue or system that is being used by Eni to allow the progress to happen on Coral Norte. It’s not unusual, and there’s Commonwealth again, money spent, and there isn’t subject around price or budget. The price verification campaign that was a contractual phase agreed with our client on Lake Charles LNG was completed. The good news is that you may have heard from Lake Charles LNG themselves, our client, that the price that we came up with was actually, per expectation for the lack of a better word.

This price verification done, the ball is in the hands of our clients and no concerns with regard to cost. The price verification results, basically to qualify it as per our client, was right. That’s super encouraging. Obviously, while we don’t control FID, we are hopeful and very hopeful that this FID will be taken next year.

Bruno Vibert, CFO, Technip Energies: That’s great.

Arnaud Pieton, CEO, Technip Energies: Thank you.

Maria, Conference Operator: The next question is from Victoria McCulloch of RBC. Please go ahead. Thanks very much for taking questions today. Just to follow up on that point about Lake Charles, does that mean the price verification that you’ve done lasts until the end of 2026? Is there a time that you can give us that that lasts for? Obviously we’ve seen lots of delays to the U.S. LNG FIDs and resource that continues. It would be helpful to understand when exactly the ref lasts until. We haven’t really talked about SASS today. Can you give us a view on the contracting outlook maybe for the next six to 12 months? I think there’s been discussed a reported opportunity coming up at some point in this year. Has that slipped again to the right into next year? That would be helpful. Thank you very much.

Arnaud Pieton, CEO, Technip Energies: Hi Victoria. Again, on Lake Charles, the price verification comes with, I would say, the mechanism for price adjustment depending on the delay or the time the client takes from the submission of the price refresh and the actual time for FID. There is a frame and we are absolutely within the frame in a very controlled manner. Everything is accounted for, if I may say, and planned so that the validity remains because the contract allows for the price adjustment depending on the timing between the submission of the budget and actual FID. No exposure for Technip Energies and I would say a constant monitoring of the situation there. When it comes to SAF, indeed, you’re right. We had signaled that SAF was and is an opportunity. I’m happy to report that SAF remains an opportunity for 2025 and 2026, including for Q4 2025.

Let’s see, we are well advanced with one, which I won’t share too much on right here, but many and good building blocks for potential FID within. More generally speaking, when you think about SAF and you need to think about scale, the SAF projects are kind of feedstock constrained and most will be local plants serving local needs. Do not expect big export projects like for LNG, for example. SAF is not about that scale, but there’s a lot of SAF needed going forward. It’s a theme for the long term for sure. EU is 6% blending by 2030 and 20% by 2035. That’s 15 million tonnes per annum by 2035. It’s huge investment required.

Even if there was to be a bit of a slowdown, as we know, policies can be challenged, there’s still a massive potential and it’s important to know that Technip Energies is part of it and it remains an opportunity, including for this quarter.

Maria, Conference Operator: Thanks very much. The next question is from Guilherme Levy of Morgan Stanley.

Bruno Vibert, CFO, Technip Energies: Hi. Hello. Thank you for taking my questions. I have two, please. The first one, on a topic that we haven’t spoken about today, you talked about the pace of. You talked about the non-recurring expenses this quarter related to these ones. I was just curious about the pace of spending there over the coming quarters and if you can provide us with an update on FID conversations in terms of subdigious partners, that would be great. The second one, thinking about your backlog, can you quantify to us how much of the TPS backlog and how much of the Project Delivery backlog are denominated in euros or U.S. dollars? Thank you again.

Arnaud Pieton, CEO, Technip Energies: I’ll start with the easy part if I may. On Rejoule in particular, before handing over to Bruno, I’m happy to offer a bit of an update on the progress. We’ve continued to progress on Rejoule development and this progress is coinciding with progress on regulation and policies, which is extremely encouraging for this Rejoule initiative and the brand that we have created. In this quarter we’ve produced from our demo plant in Germany the first batch of yarn made of rPET, so recycled polyethylene, and this yarn was subsequently converted into fabric. We have now the first Rejoule fabric that has been made available to a series of brands for them to conduct their testing and, I would say, the characterization and the qualification of the product. Really super encouraging and good progress on Rejoule this quarter and more to come.

All that progress is taking us closer to FID. Of course, as we’ve mentioned in the past, FID remains dependent on the level of subsidies that we will and we can benefit from and from the countries in which we’ve applied for subsidies and contemplated the installation of the first plant. That is work in progress and we are a few months away from, I would say, finding out what and how many subsidies will be coming our way. Bruno.

Bruno Vibert, CFO, Technip Energies: Yeah. On the FX, of course it’s a moving element because of project change and so on. They have a bit of a different setup on projects. Most of the projects are delivered with what we call multi-currency, which means back to back we invoice to the client the cost of our cost base in a specific currency, and this is then recharged as part of the selling mechanism. A lot of USD, but there is a bit of a hedge which is made through these elements. Project Delivery is slightly less impacted to some extent by FX on a given year for TPS, and as I said, about half of the year-on-year movement can be assessed to be associated with FX. When we do services in the U.S., in Middle East, it’s very much USD denominated.

That’s why year to date you would have close to 50% for instance of TPS that was run through USD services.

Arnaud Pieton, CEO, Technip Energies: Maybe on the redo and non-recurring.

Bruno Vibert, CFO, Technip Energies: Sure, on non-recurring. So $49 million and what I said about $35 million being redo, also adjacent business models and also cost for the quarter that we’ve incurred, notably for, you know, consulting and so on for the AM&C transaction. I think it was a very good investment. Part of when I recall the question earlier on having good multiples, it’s also a very thorough due diligence that we made on all aspects to get to this point and to cover our base. Overall, I think redo and adjacent business models are well on track. I think we said $50 million max as an expenditure for 2020. That’s what we expressed at the time of the CMD. We’re actually on a run rate slightly lower than that. I think we’re closer to $10 million over the last couple of quarters as a run rate.

The incremental for this quarter plus a bit of a summer was around these ADNOC expenses associated with the transaction. The rest of non-recurring is, as always, you know, always some small restructuring and so on, which is as we have our backlog shift and so on, we always slightly adjust. We are not presenting EPS on an adjusted basis. That’s why when you have such an increase in EBIT or EBITDA at 9%, you don’t see the full. This doesn’t follow through to the bottom line. As I said, if you take out the $35 million, which are really investment in capital allocation, you would have close to 15% actually of EPS growth year on year. That’s where you see the traction.

Arnaud Pieton, CEO, Technip Energies: Yeah, thanks. We are really investing for the future here, and I think it’s one of the attributes of Technip Energies is that we have the ability to invest for our future and low future value creation.

Bruno Vibert, CFO, Technip Energies: Thank you.

Maria, Conference Operator: The next question is from Guillaume Delaby of Bernstein.

Arnaud Pieton, CEO, Technip Energies: Yes, good afternoon, Arnaud and Bruno.

Bruno Vibert, CFO, Technip Energies: I have many questions, but I’m going to stick to one. If I understand correctly, since the beginning of the year within TPS you’ve been surprised by your carbon capture business but slightly disappointed by your ECLEN business. If I understand correctly, this is about to reverse, i.e. over the coming quarters, SLN could accelerate while CCUs may or might slow down a little bit. Just a confirmation that my understanding is correct. Second point, I understand that they are only very early signs, but should.

Arnaud Pieton, CEO, Technip Energies: We assume that the provision, the forecast.

Bruno Vibert, CFO, Technip Energies: you made for the ethylene market at the Capital Market Day still valid?

Arnaud Pieton, CEO, Technip Energies: Hi Guillaume. Yes, first of all, the forecast is still valid as far as we see. Yes, absolutely. Back to TPS, obviously. You’re right to say that in the year we’ve seen some acceleration recently in carbon capture, and while ethylene was low, it is about to reverse. Very clear early signs of re-engagement and new investment in brownfield and greenfield, and also decarbonization with the replacement of furnaces by low-emission furnaces for existing infrastructure. Now, I wouldn’t be, I would say, so negative as to say that carbon capture will slow down carbon capture. We have some significant opportunities on the horizon with FID in 2026, probably.

Bruno Vibert, CFO, Technip Energies: For.

Arnaud Pieton, CEO, Technip Energies: Projects of significant size. It’s still there for sure. I think where we would have hoped for further acceleration is in the space of green hydrogen, for example, where the business plan is not exactly as we would have expected, despite the fact that we were successful last year with the largest green ammonia project in the world, in India. The momentum is we have those spikes, but I would say it’s not a very recurring trend of awards in that space. A bit of a disappointment in some of those new markets now. I think the 2035 trajectory is there for decarbonization. It’s here to stay. It’s happening, maybe not at the pace that we would have preferred or we could have hoped, but it’s happening. I think the fundamentals are here and it’s important to. It’s a bit of a game of resilience, as I explained earlier.

Bruno Vibert, CFO, Technip Energies: Thank you. Merci, Arnaud.

Arnaud Pieton, CEO, Technip Energies: Merci.

Maria, Conference Operator: The next question is from Paul Chabran of BNP Paribas Exane.

Arnaud Pieton, CEO, Technip Energies: Hi guys.

Bruno Vibert, CFO, Technip Energies: Thank you very much for your time.

Arnaud Pieton, CEO, Technip Energies: Two questions, please.

Bruno Vibert, CFO, Technip Energies: The first one is I can see.

Arnaud Pieton, CEO, Technip Energies: some phasing going on in the backlog for TPS. It looks like some phasing forward, it might be other movements. I just wanted to see whether from 2027 into 2026, whether you can give any guidance on kind of what’s going on there.

Bruno Vibert, CFO, Technip Energies: Secondly, I want to ask.

Arnaud Pieton, CEO, Technip Energies: About the conversations you’re having with possible.

Bruno Vibert, CFO, Technip Energies: LNG customers and whether you’re hearing any.

Arnaud Pieton, CEO, Technip Energies: Growing concerns about gas price outlook.

Bruno Vibert, CFO, Technip Energies: The second in the next decade, 2030.

Arnaud Pieton, CEO, Technip Energies: Plus, and whether you think that could have an impact on LNG project sanctions from here. Thank you very much. Thank you, Paul. I’ll start with LNG and then I’ll hand over to Bruno on the phasing of the TPS backlog. So LNG, the sentiment is, as you read, the press is indeed on a potential surplus. As far as we are concerned, what we’re observing is that the energy demand and the coal to gas switching will continue to support the long-term demand growth for LNG. A reminder of the fact that LNG is a supply-led market and very long cycle.

While there might be an oversupply in 2028, when the new trains currently under construction are coming on stream, or a lot of them are coming on stream, we are not LNG producers and our customers, they take their investment decision not based on an oversupply that will be probably temporary. They take their investment decision based on their vision 2040 to meet the demand by then. LNG is a supply-led market, long cycle. If prices do soften, it will attract a new breed of customers and buyers of LNG and therefore it will trigger another wave of investment. We continue to see the total liquefaction capacity needing to be around the north of 900 million tonnes per annum by the middle of the next decade.

Bruno Vibert, CFO, Technip Energies: So.

Arnaud Pieton, CEO, Technip Energies: A very healthy pipeline for Technip Energies in spite or despite the short-term softening on price of LNG. This is not exactly what we are subject to at Technip Energies. The investments are really for the long term, and when you take investment decision in 2025, you start producing depending on the size of your project in 2030. You really look beyond the short-term softening of the price, and if anything, it would just attract more, more customers, and you know, gas would be a good idea to replace coal and displace coal, and gas is still needed, is very needed for all the data centers. That’s why we’ve put, and we are putting this 900 million ton number out for, you know, the middle of the next decade. Bruno?

Bruno Vibert, CFO, Technip Energies: Yeah, good afternoon Paul. In terms of TPS and phasing and backlog scheduling, as always, TPS is shorter cycle, so you will always have more of the TPS backlog incurred over a short period of time, and usually you have basically the backlog which represents about one year of revenues. In terms of services, you may have some services which are spread out for master service agreements or master services. We’ve seen a bit of acceleration for some in project management now where you have an extended backlog in TPS. It’s for construction scopes of equipment, and here I think, as I said in my remark, I think, and as Arnaud mentioned also, the work done for the TPS scope of Net Zero Teesside has started well, notably at our fabrication yard in India.

Firming this up meant that we’ve been able to reassess the backlog scheduling and certainly more on moving it forward versus backwards due to good progress and good execution.

Arnaud Pieton, CEO, Technip Energies: Thank you, Bruno. I know we are reaching the top of the hour, but I want to take maybe one more minute to insist again on the quality of the coverage that we have for 2026 Technip Energies, and notably in Project Delivery we have a large and qualitative coverage for 2026 at $7 billion, as I stated during my prepared remarks. It’s putting us well ahead of the curve, if I may say, for achieving our 2028 framework that we declared last year at our Capital Markets Day. It speaks to the strength of the model we have. It’s not the first time that we see delayed FIDs. This is not a source of anxiety for us.

We continue to remain calm and focus on the right opportunities, the de-risked ones, and those that are compatible with the level of financial performance and profitability that we want to achieve as Technip Energies.

Maria, Conference Operator: I’ll turn the call back to you for closing remarks.

Arnaud Pieton, CEO, Technip Energies: Thank you, Maria. That concludes today’s call. Please contact the IR team with any follow up questions. Thank you and goodbye.

Maria, Conference Operator: Ladies and gentlemen, thank you for joining. The conference is now over. You may disconnect your telephones. Thank you.

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