TechnipFMC plc Q3 FY2025 earnings call

• Total company revenue in the period was $2.6 billion, adjusted EBITDA was $531 million with a margin of 20.1% excluding foreign exchange impacts. • Total company orders were over $2.6 billion, 15 of the past 6 quarters had a book-to-bill above 1. • Generated free cash flow of $448 million and distributed $271 million through dividends and share repurchases. • Subsea realized quarterly inbound orders of $2.4 billion, with commercial success driving confidence in $10 billion of subsea orders in 2025 and $30 billion of inbound over 3 years. • Developed Subsea 2.0 and iEPCI as innovations to shorten cycle times and improve project returns. • Board of Directors authorized additional share repurchases of up to $2 billion.

Subsea: Revenue was $2.3 billion, up 5% sequentially. Adjusted EBITDA was $506 million, up 5% sequentially with a margin of 21.8%. Surface Technologies: Revenue was $328 million, up 3% sequentially. Adjusted EBITDA was $54 million, up 3% sequentially with a margin of 16.4%.

• For 2026, Subsea revenue is guided to a range of $9.1 billion to $9.5 billion with adjusted EBITDA margin in the range of 20.5% to 22%. • Full-year adjusted EBITDA guidance increased to approximately $1.83 billion, and free cash flow guidance increased to a range of $1.3 billion to $1.45 billion. • Subsea revenue in Q4 expected to decline mid-single digits sequentially, adjusted EBITDA margin expected to decline ~300 basis points to 18.8%. • Surface Technologies revenue expected to decline low single digits sequentially, adjusted EBITDA margin similar to Q3's 16.4%.

• Uncertainties in free cash flow conversion from EBITDA, as working capital benefits and one-time benefits may not be sustainable. • Seasonal impacts on Subsea revenue, such as vessel downtime in certain regions affecting offshore operations.

Q: On the share repurchase authorization and cash return in '26, how are you thinking about it?

A: We are pleased with free cash flow generation this year. We recommit to returning at least 70% of free cash flow to shareholders, similar to 2025. When normalizing for working capital, free cash flow conversion from EBITDA is approaching ~55%.

Q: On Subsea award intake and working capital expectations, any updates?

A: There are still more awards to be announced. Regarding working capital, we had an exceptional year, and we will typically start with a neutral position when guiding forward.

Q: On Subsea margin guide for 2026 and Subsea 2.0 percentage, how much of revenue is expected to be Subsea 2.0?

A: Approaching 40% of capacity is working on Subsea 2.0, inbound levels of Subsea 2.0 have exceeded 50% and are expected to grow as a percentage of total orders next year.

Q: On Surface Technologies outlook for 2026 and electric Subsea infrastructure opportunity?

A: Surface Technologies outlook is less certain, but we are positioned with the right customers and technology. Electric Subsea infrastructure is progressing, with applications in carbon capture and storage, brownfield tiebacks, and retrofitting hydraulic trees with electric actuation.

Q: On order intake cycles and resourcing, your perspective?

A: We are not experiencing slowdowns in order intake, with 80% of business direct awarded. We are confident in resourcing as we focus on execution and reducing cycle time, being able to do more with the same.