TechnipFMC plc Q3 FY2024 earnings call

• TechnipFMC team demonstrated solid execution with adjusted EBITDA and margin improving sequentially for Subsea and Surface Technologies. • Revenue in Q3 was $2.3 billion, adjusted EBITDA $389 million, adjusted EBITDA margin 16.6% excluding FX. • Total company inbound was $2.8 billion, driving backlog to $14.7 billion, with Subsea backlog at $13.7 billion. • Announced awards from Petrobras for Flexible Pipe and Subsea Production Systems, and an iEPCI for bp’s Kaskida project. • Focus on industrialization, standardization, and integrated business models for efficient execution. • Surface Technologies saw growth in the Middle East despite lower wellhead equipment sales in North America.

In Subsea, revenue was $2 billion, modestly increased vs Q2, driven by higher project activity in Asia Pacific, Latin America, and Canada. Adjusted EBITDA was $371 million with a margin of 18.3%, up 60 basis points from Q2. In Surface Technologies, revenue was $320 million, modestly increased sequentially. Adjusted EBITDA was $49 million, up 7% vs Q2, with a margin of 15.3%, up 80 basis points. Subsea inbound orders were $2.5 billion, book-to-bill of 1.2, backlog at $13.7 billion. Total company revenue was $2.3 billion, adjusted EBITDA $389 million with a margin of 16.6% excluding foreign exchange impacts.

• Subsea: Fourth quarter revenue to decline low-single-digits sequentially, adjusted EBITDA margin ~16.5%; full year Subsea adjusted EBITDA expected to approach $1.3 billion. • Surface Technologies: Fourth quarter revenue to increase low-single-digits sequentially driven by international growth. • Full year total company adjusted EBITDA increased to approximately $1.37 billion. • Increased Subsea 2025 revenue guidance to $8.3 billion-$8.7 billion and adjusted EBITDA margin guidance to 18.5%-20%.

• Forward-looking statements subject to risks and uncertainties that could cause actual results to differ from projections. • Market uncertainties, vessel market tightness, and macroeconomic factors could impact actual performance vs projections. • Risks related to new information, future events, or other factors that could make forward-looking statements inaccurate.

Q: On 2025 Subsea outlook and margin drivers A: Douglas Pferdehirt mentioned more iEPCI and Subsea 2.0 in 2025, and Alf Melin noted stronger operating margins from converting higher quality backlog and relentless focus on industrialization Q: Vessel market tightness A: Douglas Pferdehirt stated TechnipFMC moved to the vessel ecosystem, working with partners' vessels to execute iEPCI projects, allowing growth and confidence in execution Q: Petrobras projects scope upsizing A: Douglas Pferdehirt said some scope changes, infrastructure/layout changes, and FEED activity drove award value potential upsizing Q: Share repurchase and distributions A: Douglas Pferdehirt discussed strong cash generation, nearly doubling distributions, and the $1 billion share repurchase authorization with plans to grow it going forward Q: Surface business growth in Middle East A: Douglas Pferdehirt expressed confidence in Surface Technologies' international business growth due to investment and ramp-up in Saudi Arabia and UAE Q: Backlog staging and margin outlook for 2026+ A: Douglas Pferdehirt and Alf Melin noted high visibility in backlog coverage, with legacy projects decreasing and quality orders increasing, supporting future margins Q: Flexible market drivers A: Douglas Pferdehirt said flexible market growth outside Brazil is due to iEPCI offering, as TechnipFMC is the field architect in iEPCI projects, leveraging flexible technology for architecture simplification and acceleration of first oil