Subsea orders surged to $3.1 billion, more than double the prior year, as deepwater spending accelerates. The company raised its full-year EBITDA forecast and added $300 million to its buyback program.
TechnipFMC posted second-quarter earnings that beat analyst estimates, driven by a jump in subsea orders as deepwater spending keeps climbing.
The oilfield-services company reported adjusted earnings of $0.42 a share, topping the $0.38 consensus compiled by Bloomberg. Revenue came in at $2.28 billion, slightly above the $2.25 billion analysts had expected.
Subsea orders hit $3.1 billion in the quarter, more than double the year-ago period and well above the $2.5 billion the company had flagged as a ceiling for quarterly inbound. The backlog for the segment now stands at $13.8 billion, up from $12.1 billion at the end of March.
CEO Douglas Pferdehirt said the order flow reflects a structural shift in offshore spending, not a cyclical peak. “We are seeing projects that were shelved for years now moving to final investment decision,” he told analysts on the call. “The barrel of oil needed to meet demand in 2030 is not being drilled today without deepwater.”
The surface technologies segment, which handles onshore wellheads and valves, posted a 4% revenue decline to $420 million. The company attributed the dip to project timing in North America, where operators have slowed completion activity.
Total company adjusted EBITDA margin widened to 16.8% from 15.2% a year earlier, helped by higher-margin subsea backlog rolling through. Free cash flow for the quarter was $112 million, compared with $87 million in the same period last year.
For the full year, TechnipFMC raised its adjusted EBITDA guidance to a range of $1.55 billion to $1.65 billion, up from the prior $1.45 billion to $1.55 billion. The company also boosted its share-buyback authorization by $300 million, bringing the total available to $500 million.
The FTI stock page carries an Alpha Score of 74 out of 100, a Moderate rating that reflects solid earnings momentum against sector-average valuation.
Pferdehirt said the company expects subsea awards in the second half to match or exceed the first half's pace, citing ongoing tenders in Brazil, Guyana and the U.S. Gulf of Mexico. “The pipeline continues to grow,” he said.
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