fti-20240331

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2024

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from _____ to _____ .

Commission File Number: 001-37983

TechnipFMC plc

(Exact name of registrant as specified in its charter)


United Kingdom			98-1283037
(State or other jurisdiction of incorporation or organization)			(I.R.S. Employer Identification No.)




One Subsea Lane
Houston, Texas
United States of America			77044
(Address of principal executive offices)			(Zip Code)

+1 281-591-4000

(Registrant’s telephone number, including area code)

______________________________________________________

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading Symbol

Name of each exchange on which registered

Ordinary shares, $1.00 par value per share

FTI

New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.


Large accelerated filer	☒	Accelerated filer	☐
Non-accelerated filer	☐	Smaller reporting company	☐
		Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.


Class						Outstanding at April 24, 2024
Ordinary shares, $1.00 par value per share						430,973,995

TABLE OF CONTENTS


			Page
PART I — Financial Information			4
Item 1. Financial Statements (Unaudited)			4
Condensed Consolidated Statements of Income			4
Condensed Consolidated Statements of Comprehensive Income			5
Condensed Consolidated Balance Sheets			6
Condensed Consolidated Statements of Cash Flows			7
Condensed Consolidated Statements of Changes in Stockholders’ Equity			8
Notes to Condensed Consolidated Financial Statements			9
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations			27
Business Outlook			27
Consolidated Results of Operations			29
Segment Results of Operations			30
Inbound Orders and Order Backlog			31
Liquidity and Capital Resources			32
Critical Accounting Estimates			34
Other Matters			34
Item 3. Quantitative and Qualitative Disclosures About Market Risk			35
Item 4. Controls and Procedures			35
PART II — Other Information			36
Item 1. Legal Proceedings			36
Item 1A. Risk Factors			36
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds			36
Item 3. Defaults Upon Senior Securities			36
Item 4. Mine Safety Disclosures			36
Item 5. Other Information			37
Item 6. Exhibits			37
Signatures			38

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

This Quarterly Report on Form 10-Q of TechnipFMC plc (the “Company,” “we,” “us,” or “our”) contains “forward-looking statements” as defined in Section 27A of the United States Securities Act of 1933, as amended, and Section 21E of the United States Securities Exchange Act of 1934, as amended (the “Exchange Act”). Forward-looking statements usually relate to future events, market growth and recovery, growth of our new energies business and anticipated revenues, earnings, cash flows or other aspects of our operations or operating results. Forward-looking statements are often identified by the words “believe,” “expect,” “anticipate,” “plan,” “intend,” “foresee,” “should,” “would,” “could,” “may,” “estimate,” “outlook” and similar expressions, including the negative thereof. The absence of these words, however, does not mean that the statements are not forward-looking. These forward-looking statements are based on our current expectations, beliefs and assumptions concerning future developments and business conditions and their potential effect on us. While management believes these forward-looking statements are reasonable as and when made, there can be no assurance that future developments affecting us will be those that we anticipate.

All of our forward-looking statements involve risks and uncertainties (some of which are significant or beyond our control) and assumptions that could cause actual results to differ materially from our historical experience and our present expectations or projections. Known material factors that could cause actual results to differ materially from those contemplated in the forward-looking statements include those set forth in Part I, Item 1A, “Risk Factors” of our Annual Report on Form 10-K for the fiscal year ended December 31, 2023 and Part II, Item 1A “Risk Factors” and elsewhere in this Quarterly Report on Form 10-Q, including unpredictable trends in the demand for and price of oil and natural gas; competition and unanticipated changes relating to competitive factors in our industry, including ongoing industry consolidation; our inability to develop, implement and protect new technologies and services and intellectual property related thereto, including new technologies and services for our New Energy business; the cumulative loss of major contracts, customers or alliances and unfavorable credit and commercial terms of certain contracts; disruptions in the political, regulatory, economic and social conditions of the countries in which we conduct business; the refusal of DTC to act as depository and clearing agency for our shares; the impact of our existing and future indebtedness and the restrictions on our operations by terms of the agreements governing our existing indebtedness; the risks caused by our acquisition and divestiture activities; additional costs or risks from increasing scrutiny and expectations regarding ESG matters; uncertainties related to our investments in New Energy business; the risks caused by fixed-price contracts; our failure to timely deliver our backlog; our reliance on subcontractors, suppliers and our joint venture partners; a failure or breach of our IT infrastructure or that of our subcontractors, suppliers or joint venture partners, including as a result of cyber-attacks; risks of pirates and maritime conflicts endangering our maritime employees and assets; any delays and cost overruns of new capital asset construction projects for vessels and manufacturing facilities; potential liabilities inherent in the industries in which we operate or have operated; our failure to comply with existing and future laws and regulations, including those related to environmental protection, climate change, health and safety, labor and employment, import/export controls, currency exchange, bribery and corruption, taxation, privacy, data protection and data security; the additional restrictions on dividend payouts or share repurchases as an English public limited company; uninsured claims and litigation against us; tax laws, treaties and regulations and any unfavorable findings by relevant tax authorities; potential departure of our key managers and employees; adverse seasonal, weather, and other climatic conditions; unfavorable currency exchange rates; risk in connection with our defined benefit pension plan commitments; and our inability to obtain sufficient bonding capacity for certain contracts. We caution you not to place undue reliance on any forward-looking statements, which speak only as of the date hereof. We undertake no obligation to publicly update or revise any of our forward-looking statements after the date they are made, whether as a result of new information, future events or otherwise, except to the extent required by law.

PART I — FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

TECHNIPFMC PLC AND CONSOLIDATED SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)


	Three Months Ended
	March 31,
(In millions, except per share data)		2024		2023
Revenue
Service revenue		$	1,165.8	$	868.1
Product revenue		813.9		795.1
Lease revenue		62.3		54.2
Total revenue		2,042.0		1,717.4

Costs and expenses
Cost of service revenue		1,019.1		802.0
Cost of product revenue		643.2		654.7
Cost of lease revenue		38.3		39.8
Selling, general and administrative expense		159.8		153.9
Research and development expense		17.6		15.4
Restructuring, impairment and other charges		5.0		0.6
Total costs and expenses		1,883.0		1,666.4

Other income (expense), net		(12.3)		(1.3)
Gain on disposal of Measurement Solutions business (Note 3)		75.2		—
Income from equity affiliates (Note 10)		1.4		14.2
Income before net interest expense and income taxes		223.3		63.9
Interest income		13.7		8.3
Interest expense		(26.4)		(27.0)
Income before income taxes		210.6		45.2
Provision for income taxes (Note 16)		49.7		37.4
Net income		160.9		7.8
Net income attributable to non-controlling interests		(3.8)		(7.4)

Net income attributable to TechnipFMC plc		$	157.1	$	0.4

Earnings per share attributable to TechnipFMC plc
Basic		$	0.36	$	0.00
Diluted		$	0.35	$	0.00

Weighted average shares outstanding (Note 6)
Basic		433.6		442.1
Diluted		446.3		455.0

The accompanying notes are an integral part of the condensed consolidated financial statements.

TECHNIPFMC PLC AND CONSOLIDATED SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED)


	Three Months Ended
	March 31,
(In millions)		2024		2023
Net income attributable to TechnipFMC plc		$	157.1	$	0.4
Net income attributable to non-controlling interests		(3.8)		(7.4)

Net income attributable to TechnipFMC plc, including non-controlling interests		160.9		7.8

Foreign currency translation adjustments
Net unrealized gains (losses) arising during the period		(62.7)		15.9
Reclassification adjustment for net losses (gains) included in net income		10.5		(0.1)
Foreign currency translation adjustments(a)		(52.2)		15.8

Net losses on hedging instruments
Net losses arising during the period		(34.4)		(6.1)
Reclassification adjustment for net (gains) losses included in net income		(3.1)		1.6
Net losses on hedging instruments(b)		(37.5)		(4.5)

Pension and other post-retirement benefits
Net gains (losses) arising during the period		4.1		(2.0)
Reclassification adjustment for amortization of prior service cost included in net income		0.1		0.1
Reclassification adjustment for amortization of net actuarial loss included in net income		3.1		2.2
Reclassification adjustment for net gain included in net income		(2.3)		—
Net pension and other post-retirement benefits(c)		5.0		0.3
Other comprehensive income (loss), net of tax		(84.7)		11.6
Comprehensive income		76.2		19.4
Comprehensive (income) attributable to non-controlling interest		(3.9)		(5.4)
Comprehensive income attributable to TechnipFMC plc		$	72.3	$	14.0

(a)Net of income tax of nil for the three months ended March 31, 2024 and 2023.

(b)Net of income tax benefit (expense) of $6.6 million and $(4.6) million for the three months ended March 31, 2024 and 2023, respectively.

(c)Net of income tax benefit (expense) of $1.0 million and $(1.0) million for the three months ended March 31, 2024 and 2023, respectively.

The accompanying notes are an integral part of the condensed consolidated financial statements.

TECHNIPFMC PLC AND CONSOLIDATED SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)

SEC Form 10-Q filed by TechnipFMC plc