TechnipFMC Announces First-Quarter 2025 Results

• Total Company inbound orders of $3.1 billion; Subsea of $2.8 billion, a book-to-bill of 1.4x
• Total Company backlog of $15.8 billion; Subsea of $14.9 billion
• Cash flow from operations of $442 million; free cash flow of $380 million
• Total shareholder distributions of $271 million, including share repurchase of $250 million

TechnipFMC plc (NYSE:FTI) (the "Company" or "TechnipFMC") today reported first-quarter 2025 results.

Total Company revenue in the first quarter was $2,233.6 million. Net income attributable to TechnipFMC was $142 million, or $0.33 per diluted share. These results included after-tax charges and credits totaling $0.9 million of expense (Exhibit 6).

Adjusted net income was $142.9 million, or $0.33 per diluted share (Exhibit 6).

Adjusted EBITDA, which excludes pre-tax charges and credits, was $343.8 million; adjusted EBITDA margin was 15.4 percent (Exhibit 8).

Included in total Company results was a foreign exchange loss of $12.1 million, or $8.1 million after-tax. When excluding the after-tax impact of foreign exchange loss of $8.1 million, net income was $150.1 million. Adjusted EBITDA, excluding foreign exchange, was $355.9 million (Exhibit 8).

Doug Pferdehirt, Chair and CEO of TechnipFMC, remarked, "I'm pleased to share another strong set of financial results to start the year. Our quarterly results clearly demonstrate the unique capabilities of our company and the value we are providing to our clients."

"Total Company revenue in the period was $2.2 billion. Adjusted EBITDA was $356 million when excluding foreign exchange impacts, an increase of 38 percent compared to the prior year. Free cash flow was $380 million, which, together with our strong cash flow from operations, is a notable achievement in light of our typical seasonality."

Pferdehirt continued, "Subsea inbound was $2.8 billion, representing a book-to-bill of 1.4x. Orders have now exceeded revenue in eight of the last nine quarters, supported by robust inbound for both integrated Engineering, Procurement, Construction, and Installation (iEPCI™) and Subsea 2.0®. In the quarter, we were awarded an iEPCI™ contract from Equinor for the Johan Sverdrup Phase 3 project, as well as an iEPCI™ project from Shell that will include our Subsea 2.0® technology on their greenfield Gato do Mato development offshore Brazil. To further advance the growth of our integrated portfolio, we recently announced a strategic alliance with Cairn Oil & Gas to deliver future deepwater developments offshore India using our iEPCI™ commercial model."

"Our Subsea Opportunities List now highlights more than $26 billion of inbound opportunities over the next 24 months, when using the midpoint of project values. Putting this into perspective, the value of this list has grown nearly 20 percent over the last twelve months and represents the third consecutive quarterly increase. The opportunity set is also supported by multiple new frontiers, including Guyana, Suriname, Namibia, Mozambique, and Cyprus, all of which present long-term opportunities with development lifecycles that extend well beyond the end of the decade."

Pferdehirt added, "While commodity prices are a primary variable in our clients' decisions to move forward on a development, the impact they have on the economic feasibility of a project can differ significantly by region and resource. We continue to believe that offshore will remain a preferred investment of operators, with deepwater attracting a growing share of global capital flows, driven by much-improved economic returns and broad access to these resources. This gives us continued confidence in delivering more than $10 billion of Subsea inbound in 2025."

Pferdehirt continued, "U.S. land is among the most susceptible regions to lower commodity prices, given its relatively high cost of development. The majority of activity in our Surface Technologies segment is driven by international markets, where we have secured significant inbound through the first four months of the year. Importantly, we estimate 95 percent of our total Company revenue in 2025 will be generated from activity outside of the U.S. land market."

"Our revenue is derived from diverse sources—which include not just products, but also significant installation and services activities. When thinking about our potential exposure to the recently announced tariffs, it is largely confined to product-related revenue from our operations across U.S. land and the U.S. Gulf. Given our mitigation efforts, we anticipate the impact to total Company adjusted EBITDA to be less than $20 million in 2025."

Pferdehirt concluded, "In a dynamic environment, we have truly differentiated our Company. We have built a strong backlog totaling $15.8 billion. Our exceptional execution is driving robust free cash flow. And we are growing shareholder distributions—allowing for even more share repurchase at a time when our equity offers a very compelling investment opportunity. Importantly, our outlook for Subsea inbound orders for 2025 is unchanged, and our total Company guidance for adjusted EBITDA also remains unchanged at the midpoint of the range for the full year."

"We are excited about what lies ahead for us. Our opportunity set is deep and diverse. At the same time, our execution is strong and accelerating, and our business transformation is creating even more value for our clients, our Company, and our shareholders."

Subsea reported first-quarter revenue of $1,936.2 million, a decrease of 5.5 percent from the fourth quarter. The sequential decline was driven by lower activity in Africa, the North Sea, and the Gulf of America as well as reduced services activity due to typical offshore seasonality, partially offset by higher project activity in Asia Pacific and Brazil.

Subsea reported an operating profit of $247.9 million, an increase of 7.8 percent from the fourth quarter. Operating results increased sequentially due to a $12.6 million reduction in restructuring, impairment and other charges, as well as strong project execution and improved earnings mix from backlog. The increase in operating profit was partially offset by lower services activity and reduced fleet availability due to higher scheduled maintenance in the period. Operating profit margin increased 160 basis points to 12.8 percent.

Subsea reported adjusted EBITDA of $334.9 million, a decrease of 1.1 percent when compared to the fourth quarter. The sequential decline was driven by lower services activity and reduced fleet availability due to higher scheduled maintenance in the period, largely offset by strong project execution. Adjusted EBITDA margin increased 80 basis points to 17.3 percent.

Subsea inbound orders were $2.8 billion for the quarter. Book-to-bill was 1.4x. The following awards were included in the period:

• Shell Gato do Mato iEPCI™ project (Brazil)
  
  Major* iEPCI™ contract by Shell for its Gato do Mato greenfield development offshore Brazil. In addition to integrated execution, the project will utilize Subsea 2.0® configure-to-order (CTO) subsea production systems. Combining both offerings will enable streamlined project management through a single interface and accelerate time to first oil.
  
  *A "major" contract is greater than $1 billion.

• Equinor Johan Sverdrup Phase 3 iEPCI™ project (Norway)
  
  Large* iEPCI™ contract by Equinor for its Johan Sverdrup Phase 3 development in the Norwegian North Sea. The Johan Sverdrup field, which originally began production in 2019, is now one of the largest developments in the region. This latest phase will increase production by tying in additional wells to the current infrastructure, which is powered by low-emission resources onshore. This direct award follows an integrated Front End Engineering and Design (iFEED®) study. TechnipFMC will design, manufacture, and install subsea production systems, umbilicals, and rigid pipe that will tie new templates into the existing Johan Sverdrup field center.
  
  *A "large" contract is between $500 million and $1 billion.

Surface Technologies reported first-quarter revenue of $297.4 million, a decrease of 6.9 percent from the fourth quarter. The sequential decline in revenue was driven by project timing in the Middle East, as well as slower project activity in Africa and Asia Pacific. The sequential decrease in international markets was partially offset by higher activity in North America.

Surface Technologies reported operating profit of $30.2 million, a decrease of 17.3 percent versus the fourth quarter. Operating profit decreased sequentially due to lower activity in international markets, partially offset by higher activity in North America. Results were also favorably impacted by a net reduction of $5.1 million of charges and credits. Operating profit margin decreased 120 basis points to 10.2 percent.

Surface Technologies reported adjusted EBITDA of $46.6 million, a decrease of 12.9 percent when compared to the fourth quarter. Adjusted EBITDA decreased sequentially due to lower activity in international markets, partially offset by higher activity in North America. Adjusted EBITDA margin decreased 110 basis points to 15.7 percent.

Inbound orders for the quarter were $303.6 million, a sequential increase of 34.9 percent. Backlog ended the period at $870.4 million.

Corporate and Other Items (three months ended March 31, 2025)

Corporate expense was $25.8 million.

Foreign exchange loss was $12.1 million.

Net interest expense was $9.9 million.

The provision for income taxes was $87 million.

Total depreciation and amortization was $102.4 million.

Cash provided by operating activities was $441.7 million. Capital expenditures were $61.8 million. Free cash flow was $379.9 million (Exhibit 10).

During the quarter, the Company repurchased 8.9 million of its ordinary shares for total consideration of $250.1 million. When including a dividend payment of $21 million, total shareholder distributions in the quarter were $271.1 million.

The Company ended the period with cash and cash equivalents of $1,186.8 million; net cash improved to $281.9 million (Exhibit 9).

2025 Full-Year Financial Guidance¹

The Company's full-year financial guidance for 2025 can be found in the table below. Updates to the previous guidance issued on February 27, 2025 are as follows:

• Free cash flow of $1 billion - 1.15 billion, which increased from the previous guidance range of $850 million - 1 billion.

Teleconference

The Company will host a teleconference on Thursday, April 24, 2025 to discuss the first-quarter 2025 financial results. The call will begin at 1:30 p.m. London time (8:30 a.m. New York time). Webcast access and an accompanying presentation can be found at www.TechnipFMC.com.

An archived audio replay will be available after the event at the same website address. In the event of a disruption of service or technical difficulty during the call, information will be posted on our website.

About TechnipFMC

TechnipFMC is a leading technology provider to the traditional and new energy industries; delivering fully integrated projects, products, and services.

With our proprietary technologies and comprehensive solutions, we are transforming our clients' project economics, helping them unlock new possibilities to develop energy resources while reducing carbon intensity and supporting their energy transition ambitions.

Organized in two business segments — Subsea and Surface Technologies — we will continue to advance the industry with our pioneering integrated ecosystems (such as iEPCI™, iFEED™ and iComplete™), technology leadership and digital innovation.

Each of our approximately 21,000 employees is driven by a commitment to our clients' success, and a culture of strong execution, purposeful innovation, and challenging industry conventions.

TechnipFMC uses its website as a channel of distribution of material company information. To learn more about how we are driving change in the industry, go to www.TechnipFMC.com and follow us on X @TechnipFMC.

This communication 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. Forward-looking statements usually relate to future events, market growth, and recovery, growth of our New Energy business and anticipated revenues, earnings, cash flows, or other aspects of our operations or operating results. Forward-looking statements are often identified by words such as "commit," "guidance," "confident," "believe," "expect," "anticipate," "plan," "intend," "foresee," "should," "would," "could," "may," "will," "likely," "predicated," "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, 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; 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, or public health crisis in the countries where we conduct business; unexpected geopolitical events, armed conflicts, and terrorism threats; the refusal of the Depository Trust Company to act as depository and clearing agency for our shares; the impact of our existing and future indebtedness; a downgrade in our debt rating; the risks caused by our acquisition and divestiture activities; additional costs or risks from increasing scrutiny and expectations regarding sustainability matters; uncertainties related to our investments, including those related to energy transition; 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 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; uninsured claims and litigation against us; the additional restrictions on dividend payouts or share repurchases as an English public limited company; tax laws, treaties and regulations and any unfavorable findings by relevant tax authorities; significant changes or developments in U.S. or other national trade policies, including tariffs and the reactions of other countries thereto; 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, and other risks as discussed in Part I, Item 1A, "Risk Factors" of our Annual Report on Form 10-K for the fiscal year ended December 31, 2024 and our other reports subsequently filed with the Securities and Exchange Commission.

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.

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