TechnipFMC plc
For the period ended Mar 31, 2025. Filed Apr 24, 2025.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Mar 31, 2025 · Filed Apr 24, 2025
FTI$63.52+3.1%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2024-09-30; filed 2024-10-24.
0001681459-24-000138
Business OutlookConsolidated Results of OperationsSegment Results of OperationsInbound Orders and Order BacklogLiquidity and Capital ResourcesCritical Accounting EstimatesOther MattersCurrent report: 10-Q
Period ended 2025-03-31; filed 2025-04-24.
0001681459-25-000079
Business OutlookInbound Orders and Order BacklogLiquidity and Capital ResourcesCritical Accounting EstimatesThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 119 previous paragraphs and 78 current paragraphs.
31 unchanged; 30 reworded; 16 added; 54 removed; 4 previous and 1 current paragraphs rearranged.
Tables are not compared: 11 previous and 7 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (16)
Current report
Overall Outlook – Economic growth is expected to continue in 2025, although challenged by persistent inflation, global trade disputes, and regional conflicts. Central banks remain diligent in their efforts to curb inflation, with many successfully navigating the balance between growth and price stability. At the same time, economic sanctions imposed to end persistent geopolitical conflicts create additional risks to global energy flows, underscoring the critical importance of energy security worldwide.
Current report
We maintain a positive long-term outlook for both oil and natural gas given anticipated growth in energy demand, with affordability and energy security major considerations in addition to sustainability commitments. Our confidence in this outlook is supported by our clients’ prioritization of the development of conventional oil and natural gas resources, while also progressing energy transition efforts.
Current report
We believe that offshore and Middle East markets will maintain investment preference for operators, with deepwater attracting a growing share of global capital flows, driven by much-improved economic returns and broad access to these resources. We also expect an increasing role for technology innovation in both conventional and new energies in the delivery of energy supply. In that context, TechnipFMC is well positioned to translate our technological, operational, and financial strength into value for our clients, employees, and shareholders.
Current report
In 2024, we announced a differentiated set of awards, with three integrated Engineering, Procurement, Construction, and Installation (iEPCI™) projects all representing first-of-its-kind solutions. The Mero 3 HISEP® project was our first iEPCI™ for Petrobras and the first to utilize subsea processing to capture carbon dioxide (“CO 2”) directly from the well stream for injection back into the reservoir, all on the seafloor. The Shell Sparta project was our first iEPCI™ to employ a 20,000-psi production system in the Paleogene play in the Gulf of America. And finally, we were awarded the first iEPCI™ encompassing an all-electric subsea system for carbon capture and storage from the Northern Endurance Partnership, a joint venture between bp, Equinor, and TotalEnergies. Each of these projects provides a unique solution to an industry challenge and exemplifies our differentiated technology portfolio that is creating new market opportunities for our company in existing offshore basins.
Current report
In our New Energy business, we announced a new collaboration agreement in 2024 to deliver the industry’s first full water-column solution for offshore floating wind. Together with Prysmian, the leader in cabling solutions for the energy transition, we will combine our expertise in system design and integration capabilities in dynamic offshore applications to provide an iEPCI™ solution for the offshore floating wind market. We continue to create unique opportunities where we can leverage our onshore and offshore expertise and demonstrated project execution capabilities into leadership positions in evolving energy markets.
Current report
There is also momentum in new offshore frontiers as nations look to expand economic growth through the development of more recent resource discoveries. In late 2024, we were awarded an iEPCI™ contract for TotalEnergies’ GranMorgu project—the first subsea development in Suriname. In Namibia, there have been multiple discoveries, and operators have initiated appraisal drilling campaigns. We believe additional countries will seek to develop deepwater resources in other new frontiers during this decade, yielding additional inbound orders well beyond those projects currently in discussion.
Current report
After securing $20.2 billion of Subsea orders over the past two calendar years, our unique visibility into the market gives us confidence we will exceed $10 billion of inbound in the current year—ensuring we deliver on our guidance of $30 billion over the three-years ending 2025. These orders are expected to include a more diversified mix of opportunities and further market adoption of our Subsea 2.0® CTO platform and iEPCI™ commercial model. We also foresee the expanding reach of Subsea Services, derived from an aging installed base that continues to grow.
Current report
As we look beyond the current year, client discussions remain focused on future project activity as they seek to secure the quality capacity needed to execute their offshore developments. Our visibility into this pipeline of longer-term opportunities is supported by a growing list of named projects identified for potential final investment decision that extend beyond the historical planning horizon. This gives us confidence that activity will remain strong through the end of the decade.
Current report
North American activity is among the most susceptible to lower commodity prices given the relatively high cost of development in the region. For TechnipFMC, our surface activities on U.S. land are expected to represent just five percent of total Company revenue in 2025.
Current report
Investment in international markets is less cyclical, as most activities are undertaken by national oil companies with long-term investment horizons and a lower cost of development. This is most evident in the Middle East, where the growth we anticipated is materializing, driven by the ramp up in activity in the United Arab Emirates and the Kingdom of Saudi Arabia. Here, we have already secured a significant portion of the inbound needed to support our 2025 revenue outlook. This represents a differentiated growth opportunity for our company.
Current report
Gross profit (revenue less cost of sales) increased to $464.9 million in 2025 compared to $341.4 million in 2024. Subsea gross profit increased year-over-year by $121.4 million, of which $93.3 million was due to favorable activity mix and $28.1 million due to volume increase. Surface Technologies gross profit was flat compared to the same period in 2024, with a decrease of $0.1 million.
Current report
Surface Technologies revenue decreased by $9.8 million, compared to the same period in 2024. The decline was primarily due to lower activity in North America, Europe, Latin America, Africa and the sale of MSB during the three months ended March 31, 2024, which collectively decreased revenues by $27.7 million. This decrease was partially offset by $17.9 million of revenue growth from higher activity in the Middle East.
Current report
Surface Technologies operating profit decreased by $73.2 million, compared to the same period in 2024, and was primarily driven by the $75.2 million gain on the sale of MSB during the three months ended March 31, 2024. Excluding this gain, operating profit increased by $2.0 million compared to the same period in 2024 primarily due to$10.7 million of improved profitability through growth and enhanced operational efficiency in the Middle East, partially offset by lower activity in North America, Europe, Latin America, Africa which collectively resulted in a decrease of $8.7 million.
Current report
Operating cash flows - Operating activities provided $441.7 million of cash during three months ended March 31, 2025 as compared to $126.7 million cash used in operating activities during the same period in 2024. The increase of $568.4 million in cash from operating activities was due to increased volume and an improved mix of projects resulting in strong cash collections. Additionally, the Company has received advance payments from customers to support the higher business activity.
Current report
As of March 31, 2025, TechnipFMC was in compliance with all debt covenants. See Note 11 to our consolidated financial statements for further detail.
Current report
On January 23, 2025, Moody’s upgraded TechnipFMC to ‘Baa3’ from ‘Ba1’, while maintaining a positive outlook, for the issue-level ratings on the Company’s senior unsecured notes due 2026.
Removed paragraphs (54)
Previous report
Overall Outlook - The global economy remains resilient despite prevailing headwinds. Some central banks have lowered interest rates in response to softening inflation, but they remain diligent in their efforts to balance price stability with economic growth. These factors are expected to support sustained growth in energy demand.
Previous report
Conflicts in Ukraine and the Middle East have further highlighted the need for greater energy security across the globe. As a result, the energy industry has accelerated its efforts to address the essential need for hydrocarbons today to ensure the continuity of affordable energy while also playing an essential role in the energy transition.
Previous report
The price of oil has been supported by regional geopolitical tensions and more disciplined capital spend spending within the industry, particularly among OPEC+ countries. These nations are prioritizing production levels that foster both economic growth and energy investment, as evident by OPEC maintaining voluntary reductions to existing production into 2025. Additionally, a prolonged period of underinvestment has also contributed to a supply deficit, requiring increased upstream spending and reinforcing a positive long-term outlook for oil and natural gas prices.
Previous report
We see continued strength ahead, driven by the resiliency and durability of the current market. The demand for energy will continue to grow. However, we believe the market’s evolution will differ from the past, driven by three major trends. First, a shift in capital flows, which we believe will largely be directed to the offshore and Middle East markets. Second, an increased role for new technologies to drive further innovation and market expansion, particularly in the offshore market. And third, an expanded role for subsea services, driven by the needs of growing and aging infrastructure. These trends allow TechnipFMC to leverage our full suite of integrated solutions, differentiated technologies, and the industry’s most comprehensive subsea services offering.
Previous report
Client discussions remain focused on project activity that extends beyond 2025 as they look to secure capacity for future phases of their offshore developments towards the end of the decade. There is also momentum in new offshore frontiers, which are likely to yield additional inbound well beyond the orders we are discussing today.
Previous report
Our leadership in subsea processing, technology innovation, and integrated solutions was recognized at the beginning of the year with the award of the Mero 3 HISEP® project, which is the first iEPCI™ (“iEPCI”) contract ever awarded by Petrobras. The significance of this project for the subsea industry cannot be overstated. This will be the first project to use subsea processing to capture CO 2 rich dense gases directly from the well stream for injection back into the reservoir, with all of the infrastructure residing on the seafloor.
Previous report
In addition to reducing greenhouse gas emission intensity, HISEP® technologies will increase production capacity by debottlenecking the gas processing plant that currently resides on the floating production storage and offloading unit (“FPSO”). By moving the gas processing entirely to the seafloor, future FPSO and topside designs can be further simplified, driving significant improvement in project economics. With the award of the Mero 3 HISEP® project, our New Energy business has now achieved more than $1 billion of inbound orders- nearly two years earlier than previously anticipated.
Previous report
In March, we were selected to deliver the first all-electric subsea iEPCI for carbon capture and storage from the Northern Endurance Partnership (“NEP”). The partnership, which is a joint venture between bp, Equinor, and TotalEnergies, is building CO 2 transportation and storage infrastructure for carbon capture projects in the U.K.’s East Coast Cluster. Our all-electric solution will collect and feed the pressurized gas into an aquifer for permanent storage. The NEP project demonstrates our ability to leverage our unique combination of innovative technologies and integrated execution as we continue to further refine our positioning and mature our offering, particularly in carbon transportation and storage.
Previous report
There is also exploration activity occurring in new offshore frontiers. In Suriname, five major discoveries have been made through the successful appraisal of multiple blocks, with confirmed combined recoverable resources of approximately 700 million barrels of oil. In October, TotalEnergies and partners reached a final investment decision for the first oil development in Block 58. In Namibia, there has also been a major discovery with multiple operators beginning their drilling campaigns. We believe additional countries will become producers of deepwater resources during this decade.
Previous report
Our Subsea inbound orders grew to $9.7 billion in 2023, an increase of 45 percent versus the prior year. The robust inbound benefited from a record level of iEPCI projects, and when including all other direct awards and Subsea Services, the combination represented more than 70 percent of total segment orders. The strong order activity has continued, with $7.7 billion of orders in the current year increasing backlog to $13.7 billion as of September 30, 2024 - a record level for TechnipFMC. We are well positioned for Subsea inbound to approach $10 billion for the full year, giving us confidence in achieving $30 billion in Subsea orders over the three-year period ending 2025.
Previous report
Drilling activity in international markets is less cyclical than in North America, as most activities are undertaken by national oil companies that tend to maintain a longer-term view that exhibits less variability in capital spend. This trend is most evident in the Middle East where we expect to continue benefiting from our exposure to the region, particularly in the United Arab Emirates and Saudi Arabia, driven by our clients’ continued investment in long-term production growth. The completion of our new, state-of-the-art facility in Saudi Arabia and the qualification of our product portfolio are favorably impacting our company today and represent a differentiated growth opportunity for TechnipFMC.
Previous report
The shift to renewable energy resources will take time. During this transition, we believe that natural gas will provide a bridge between current conventional energy supply and future renewable energy supply. The transition is expected to drive growth in the surface market, led by large natural gas projects in the Middle East. We also expect
Previous report
North America to play an important role in meeting increased natural gas demand, due in part to sanctions placed upon Russian supply.
Previous report
Gross profit increased to $493.8 million during the three months ended September 30, 2024, compared to $366.9 million in the prior year period. Subsea gross profit increased year-over-year by $124.6 million, of which $55.7 million was due to volume increase and $68.9 million due to favorable activity mix. Surface Technologies gross profit decreased year-over-year by $0.6 million, primarily due to lower drilling and completion activity in Europe, North America and the sale of MSB in the three months ended March 31, 2024 resulting in a decrease of $11.7 million, partially offset by $6.9 million of higher profitability from continued growth in the Middle East and an additional $4.2 million increase from other operating locations such as Asia Pacific and Latin America.
Previous report
Our provision for income taxes for thethree months ended September 30, 2024 and 2023 reflected effective tax rates of (2.2) percent and 17.2 percent, respectively. The change in the effective tax rate was largely due to the release of a valuation allowance in the United States with a positive net tax discrete benefit of $60.6 million, the change in geographical profit mix year-over-year and tax adjustments related to the reassessment of prior year tax accruals. During the third quarter of 2024, the Company determined it was more likely than not the Company would be able to realize the benefit of a portion of the deferred tax assets in the United States, resulting in a partial release of the valuation allowance.
Previous report
Our effective tax rate can fluctuate depending on our country mix of earnings, since our foreign earnings are generally subject to higher tax rates than those of the United Kingdom.
Previous report
NINE MONTHS ENDED SEPTEMBER 30, 2024 AND 2023
Previous report
Revenue increased by $969.5 million during the nine months ended September 30, 2024, compared to the same period in 2023. Subsea revenue increased by $1,057.7 million, driven by conversion of increased backlog, which was 49.6 percent higher as of December 31, 2023, when compared to December 31, 2022, and resulted in increased revenue from higher installation, iEPCI, supply of flexible pipe and services activities particularly in Angola, the United States, Guyana, Australia, Brazil and the United Kingdom. Surface Technologies revenue decreased by $88.2 million, compared to the same period in 2023. The decline was primarily due to lower drilling and completion activity in Europe, North America and the sale of MSB during the three months ended March 31, 2024, which collectively decreased revenues by $139.6 million. This decrease was partially offset by a $51.4 million of revenue growth from higher equipment delivery across the rest of the world, with the majority of the increase occurring in the Middle East.
Previous report
Gross profit increased to $1,336.1 million in 2024 compared to $920.5 million in 2023. Subsea gross profit increased year-over-year by $403.1 million, of which $183.0 million was due to volume increase and $220.1 million due to favorable activity mix. Surface Technologies gross profit decreased by $3.5 million compared to the same period in 2023, primarily due to lower drilling and completion activity in Europe, North America and the sale of MSB in the three months ended March 31, 2024 resulting in a decrease of $33.6 million, partially offset by $30.1 million of higher profitability from growth and higher operational leverage and efficiency across international markets such as Middle East, Asia Pacific, and Latin America.
Previous report
Selling, General and Administrative Expense
Previous report
Other income (expense), net, includes gains and losses associated with the remeasurement of net monetary assets and liabilities, gains and losses on sales of property, plant and equipment, and non-operating gains and losses. The net decrease inexpense of $161.4 million was driven by the $126.5 million non-recurring legal settlement charge recognized during the nine months ended September 30, 2023. Foreign currency loss decreased by $67.3 million, due to exposures to certain currencies with limited derivative hedging markets such as Angolan kwanza and the net impact of hedging positions during the nine months ended September 30, 2023. These decreases are partially offset by a net increase in miscellaneous other non-operating charges.
Previous report
For the nine months ended September 30, 2024 and 2023, we recorded income from equity method affiliates of$12.4 million and $35.9 million, respectively. The year-over-year decline was driven by a decrease in operational activity of our joint ventures.
Previous report
Net interest expense of $50.0 million decreased by $25.7 million in the nine months ended September 30, 2024, compared to the same period in 2023, primarily due to a net reduction in outstanding debt and higher interest income.
Previous report
Our effective tax rate can fluctuate depending on our country mix of earnings, since our foreign earnings are generally subject to higher tax rates than in the United Kingdom.
Previous report
Segment operating profit is defined as total segment revenue less segment operating expenses. Certain items have been excluded in computing segment operating profit and are included in corporate items. See Note 5 for further details.
Previous report
Surface Technologies revenue decreased by $28.3 million, compared to the same period in 2023, primarily due to $52.2 million decreased revenue as a result of lower drilling and completion activity in Europe, North America and the sale of MSB during the three months ended March 31, 2024. This decrease was partially offset by $23.9 million of revenue growth from higher equipment delivery across the rest of the world, with the majority of the increase occurring in the Middle East.
Previous report
Surface Technologies operating profit increased by $0.4 million, due to growth in the Middle East with increased operating profit of $4.7 million and an additional $1.4 million increase from other operating locations offset by a reduction of $5.7 million due to lower drilling and completion activity in Europe, North America and the sale of MSB in the three months ended March 31, 2024.
Previous report
Corporate expense increased by $6.4 million, compared to the same period in the prior year, was related to costs associated with our support functions, such as corporate staff expenses, share-based compensation expense, and other employee benefits.
Previous report
NINE MONTHS ENDED SEPTEMBER 30, 2024 AND 2023
Previous report
Subsea revenue increased by $1,057.7 million during the nine months ended September 30, 2024, compared to the same period in 2023, driven by increased backlog during 2023 related to higher energy demand and upstream spending, further aided by our unique commercial offerings. $257.5 million of the increase in revenue was from Angola, $195.0 million from Brazil, $176.9 million from Guyana, $168.8 million from the United States, $155.7 million from Australia, and $145.5 million from the United Kingdom, driven by higher installation, iEPCI, supply of flexible pipe and services activities. The increased revenue in these geographies was offset by a net $39.1 million decrease from the rest of the world, primarily from lower activity as projects reached completion.
Previous report
Subsea operating profit for the nine months ended September 30, 2024, increased by $325.2 million, of which $220.1 million was the result of a favorable activity mix and $183.0 million from higher volume, partially offset by a $77.9 million increase in operating expense related to the higher activity.
Previous report
Surface Technologies revenue decreased by $88.2 million, compared to the same period in 2023, primarily due to $139.6 million decreased revenue as a result of lower drilling and completion activity in Europe, North America and the sale of MSB during the three months ended March 31, 2024. This decrease was partially offset by $51.4 million of revenue growth from higher equipment delivery across the rest of the world, with the majority of the increase occurring in the Middle East.
Showing the first 40 of 54 passages. Open the source sections for the rest.
Reworded paragraphs (30)
Previous wording
While we are confident that conventional resources will remain a large part of the energy mix for an extended period, we are also committed to the energy transition. Here, we believe that offshore will play a meaningful role in the transition to renewable energy resources and reduction of carbon emissions. We are making real progress through our three main pillars of greenhouse gas removal, offshore floating renewables, and hydrogen solutions. We have also been successful in building on our partnerships and alliances to further position ourselves as the leading architect for offshore energy.
Current wording
As evidenced by these awards, we believe that offshore will play a meaningful role in the development of renewable energy resources and the reduction of carbon emissions. Our efforts are focused on three main pillars: greenhouse gas (GHG) removal, offshore floating renewables, and hydrogen solutions. We are also building on our partnerships as we look to expand our position as the leading architect for offshore energy.
Previous wording
Subsea - Innovative approaches to subsea projects, like our iEPCI solution, have improved project economics through more efficient design and installation of the entire subsea field architecture. Our integrated commercial model, iEPCI, brought together the complementary work scopes of the subsea production system (“SPS”) with the subsea umbilicals, risers, and flowlines (“SURF”), and installation vessels. iEPCI created a new market and helped expand the deepwater opportunity set for our clients and has grown to represent nearly one-third of the addressable subsea market.
Current wording
Subsea– Innovative approaches to subsea projects, like our iEPCI™ solution, have improved project economics through more efficient design and installation of the entire subsea field architecture. Our integrated commercial model, iEPCI™, brought together the complementary work scopes of the SPS with the SURF, and installation vessels. iEPCI™ created a new market and helped expand the deepwater opportunity set for our clients and has grown to represent nearly one-third of the addressable subsea market.
Previous wording
As the subsea industry continues to evolve, we are driving simplification, standardization, and industrialization to reduce cycle times and further reduce costs. An example of this is Subsea 2.0®, our pre-engineered configurable product offering. This technology provides simplification of unique project requirements by leveraging a configure-to-order (“CTO”) model that further improves the economics of our customers’ projects while driving greater efficiencies for TechnipFMC.
Current wording
As the subsea industry continues to evolve, we are driving simplification, standardization, and industrialization to reduce cycle times and further reduce costs. An example of this is Subsea 2.0®, our pre-engineered configurable product offering. This technology simplifies projects by leveraging a Configure-to-Order (CTO) model that further accelerates time to first production while driving greater efficiencies for TechnipFMC.
Previous wording
With CTO, we have designed an architecture, process, culture, and tools that are scalable and, more importantly, are transformational to the future of our company. CTO has allowed us to redefine our sourcing strategy and transform our manufacturing flow, resulting in up to 25 percent lower product cost and a shortened 12-month delivery time for subsea production equipment- savings that are both real and sustainable. This has paved the way for other products to adopt a similar operating model, enabling an enterprise-wide way of working.
Current wording
With Subsea 2.0® and CTO, we have designed an architecture, process, tools, and culture that are scalable and transformational to the future of our company. Subsea 2.0® has allowed us to redefine our sourcing strategy and transform our manufacturing flow, resulting in up to 25 percent lower product cost and a shortened 12-month delivery time for subsea production equipment— savings that are both real and sustainable. This has paved the way for other products within our portfolio to adopt a similar operating model, enabling an enterprise-wide way of working.
Previous wording
Given the significant improvement in project economics, many offshore discoveries can be developed economically well below today’s oil prices. We believe these changes are fundamental and sustainable, as a result of new business models and technology pioneered by our company.
Current wording
Given the significant improvement in project economics, more offshore discoveries can be developed economically below today’s oil prices. We believe these fundamental changes are sustainable, as a result of new business models and technology pioneered by our company.
Previous wording
Offshore development is likely to remain a significant part of many of our customers’ portfolios. We estimate over 35 MMBD of new oil production will be required by 2040 to meet future energy demand, including approximately 10 MMBD of new deepwater production.
Current wording
Offshore development is likely to remain a significant part of many of our customers’ portfolios, not only because of improved economics, but because of the size and accessibility of these resources. We estimate over 35 MMBD of new oil production will be required by 2040 to meet future energy demand. Approximately 10 MMBD of the increase is expected to come from new deepwater production, which is significantly above the current level of offshore production.
Previous wording
Surface Technologies - International markets comprise a significant portion of segment revenue, representing over 60 percent of the total in the first nine months of the year. We continue to benefit from our exposure to the North Sea, Asia Pacific, and the Middle East. TechnipFMC’s unique capabilities in these markets, which demand higher specification equipment, global services, and local content, provide a platform for us to extend our leadership positions.
Current wording
Surface Technologies – International markets comprise a significant portion of segment revenue, representing over 60 percent in 2024. We continue to benefit from our exposure to the North Sea, Asia Pacific, and the Middle East. TechnipFMC’s unique capabilities in these markets—which demand higher - specification equipment and local presence, including a services footprint—provide a platform for us to extend our leadership in these geographies.
Previous wording
Revenue increased $291.5 million during the three months ended September 30, 2024, compared to the same period in 2023. Subsea revenue increased by $319.8 million, primarily driven by a 49.6 percent higher backlog as of December 31, 2023, when compared to December 31, 2022, which resulted in increased revenue from higher iEPCI, supply of flexible pipe and installation activities particularly in the United Kingdom, Australia, Angola, and Guyana. Surface Technologies revenue decreased by $28.3 million, compared to the same period in 2023, primarily due to lower drilling and completion activity in Europe, North America and the sale of MSB during the three months ended March 31, 2024 by $52.2 million. This decrease was partially offset by $23.9 million of revenue growth from higher equipment delivery across the rest of the world, with the majority of the increase occurring in the Middle East.
Current wording
Revenue increased by $191.6 million during the three months ended March 31, 2025, compared to the same period in 2024. Subsea revenue increased by $201.4 million, driven by conversion of increased backlog, which was 11.1% higher as of December 31, 2024, when compared to December 31, 2023, and resulted in increased revenue from higher iEPCITMand services activities particularly in Indonesia, Norway and Nigeria. Surface Technologies revenue decreased by $9.8 million, compared to the same period in 2024. The decline was primarily due to lower activity in North America, Europe and the sale of MSB during the three months ended March 31, 2024 and was partially offset by higher activity in the Middle East.
Previous wording
Selling, general and administrative expense increased by $34.4 million during the nine months ended September 30, 2024, compared to the same period in 2023, driven by higher employee costs in support of increased business activities.
Current wording
Selling, general and administrative expense increased by $24.4 million during the three months ended March 31, 2025, compared to the same period in 2024, primarily driven by higher employee costs in support of increased business activities.
Previous wording
Other income (expense), net, includes gains and losses associated with the remeasurement of net monetary assets and liabilities, gains and losses on sales of property, plant and equipment, and non-operating gains and losses. The $34.2 million year-over-year decrease in net expense was driven by the decrease in foreign currency loss of $43.3 million, primarily related to the net impact of hedging positions year-over-year. This decrease was partially offset by a net decrease in miscellaneous other net non-operating charges.
Current wording
Other income (expense), net, includes gains and losses associated with the remeasurement of net monetary assets and liabilities, gains and losses on sales of property, plant and equipment, and non-operating gains and losses. The net increase in expense of $17.3 million was driven by an increase in foreign currency loss of $7.6 million, and miscellaneous other non-operating charges.
Previous wording
For the nine months ended September 30, 2024, we recognized a gain of $75.2 million from the sale of equity interests and assets of MSB.
Current wording
For the three months ended March 31, 2024, we recognized a gain of $75.2 million from the sale of equity interests and assets of MSB.
Previous wording
For the three months ended September 30, 2024 and 2023, we recorded income from equity method affiliates of $8.4 million and $20.6 million, respectively. The year-over-year decline was driven by a decrease in operational activity of our joint ventures.
Current wording
For the three months ended March 31, 2025 and 2024, we recorded income from equity method affiliates of$9.4 million and $1.4 million, respectively, driven by an increase in operational activity of our joint ventures.
Previous wording
Net interest expense of $15.9 million decreased by $10.8 million in the three months ended September 30, 2024, compared to the same period in 2023, primarily due to the net decrease in outstanding debt.
Current wording
Net interest expense of $9.9 million decreased by $2.8 million in the three months ended March 31, 2025, compared to the same period in 2024, primarily due to the reduction in outstanding debt.
Previous wording
Our provision for income taxes for the nine months ended September 30, 2024 and 2023 reflected effective tax rates of 14.1 percent and 95.1 percent, respectively. The change in the effective tax rate was largely due to the release of a valuation allowance in the United States with a positive net tax discrete benefit of $60.6 million, the change in geographical profit mix year-over-year and tax adjustments related to the reassessment of prior year tax accruals. During the third quarter of 2024, the Company determined it was more likely than not the Company would be able to realize the benefit of a portion of the deferred tax assets in the United States, resulting in a partial release of the valuation allowance.
Current wording
Our provision for income taxes for the three months ended March 31, 2025 and 2024 reflected effective tax rates of 37.8% and 23.6%, respectively. The increase in the effective tax rate was largely due to the change in geographical profit mix year-over-year in addition to accruals for uncertain tax positions and taxes on undistributed earnings.
Previous wording
Subsea revenue increased $319.8 million during the three months ended September 30, 2024, compared to the same period in 2023, driven by increased backlog in 2023 related to higher energy demand and upstream spending, further aided by our unique commercial offerings. Of the increase in revenue, $89.9 million was from the United Kingdom, $88.0 million from Australia, $78.7 million from Angola and $78.0 million from Guyana, driven by higher iEPCI, supply of flexible pipe and installation activities. The increased revenue in these geographies was modestly offset by a net $26.5 million decrease from the rest of the world, primarily from lower activity as projects reached completion.
Current wording
Subsea revenue increased by $201.4 million during the three months ended March 31, 2025, compared to the same period in 2024, driven by increased backlog during 2024 related to higher energy demand and upstream spending, further aided by our unique commercial offerings. $124.3 million of the increase in revenue was from Indonesia, $70.9 million from Norway and $33.1 million from Nigeria, driven by higher iEPCITM and services activities. The rest of the world contributed a net decrease of $26.8 million primarily due to completion of projects.
Previous wording
Subsea operating profit for the three months ended September 30, 2024, increased by $111.1 million, of which $68.9 million was the result of a favorable activity mix and $55.7 million from higher volume, partially offset by a $13.5 million increase in operating expense related to the higher activity.
Current wording
Subsea operating profit for the three months ended March 31, 2025, increased by $91.3 million. This was largely due to favorable activity mix, which contributed $93.3 million, and higher volume, which added $28.1 million. These improvements were partially offset by a $30.1 million increase in operating expense related to the higher activity.
Previous wording
Corporate expense decreased by $118.6 million, or 57.7 percent, compared to the same period in the prior year, primarily driven by the non-recurring legal settlement charge incurred during 2023.
Current wording
Corporate expense decreased by $6.4 million, compared to the same period in the prior year, primarily driven by $5.2 million of transaction costs associated with the sale of MSB during the three months ended March 31, 2024.
Previous wording
Subsea - Subsea backlog of $13,732.1 million as of September 30, 2024 increased by $1,568.0 million compared to December 31, 2023, and was composed of various subsea projects, including Petrobras Buzios 6, Mero 3 HISEP® and flexibles; Equinor Raia and Rosebank; ExxonMobil Whiptail and Uaru; TotalEnergies Mozambique LNG and GirLiFlex; Energean Katlan Phase 1; Shell Sparta and Bonga North; bp Kaskida, AkerBP Utsira High and Azule Energy Agogo.
Current wording
Subsea - Subsea backlog of $14,945.6 million as of March 31, 2025 increased by $1,427.5 million compared to December 31, 2024, and was composed of various subsea projects, including TotalEnergies GranMorgu and Mozambique LNG; Equinor Raia, Johan Sverdrup Phase 3 and Rosebank; Shell Gato do Mato, Bonga North and Sparta; Petrobras Mero 3 HISEP® and Buzios 6; bp NEP and Kaskida; Energean Katlan and ExxonMobil Whiptail.
Previous wording
Surface Technologies - Order backlog for Surface Technologies as of September 30, 2024 decreased by $100.1 million compared to December 31, 2023. Surface Technologies’ backlog of $966.8 million as of September 30, 2024, was composed primarily of projects in the Middle East, namely Aramco and ADNOC. The remaining backlog was composed of various projects in the rest of the world.
Current wording
Surface Technologies - Order backlog for Surface Technologies as of March 31, 2025 increased by $12.2 million compared to December 31, 2024. Surface Technologies’ backlog of $870.4 million as of March 31, 2025, was composed primarily of projects for customers in the Middle East, namely ADNOC and Saudi Aramco. The remaining backlog was composed of various projects in the rest of the world.
Previous wording
Net Debt -Net debt is a non-GAAP financial measure reflecting cash and cash equivalents, net of debt. Management uses this non-GAAP financial measure to evaluate our capital structure and financial leverage. We believe net debt is a meaningful financial measure that may assist investors in understanding our financial condition and recognizing underlying trends in our capital structure. Net debt should not be considered an alternative to, or more meaningful than, cash and cash equivalents as determined in accordance with GAAP or as an indicator of our operating performance or liquidity.
Current wording
Net Cash -Net cash is a non-GAAP financial measure reflecting cash and cash equivalents, net of debt. Management uses this non-GAAP financial measure to evaluate our capital structure and financial leverage. We believe net cash is a meaningful financial measure that may assist investors in understanding our financial condition and recognizing underlying trends in our capital structure. Net cash should not be considered an alternative to, or more meaningful than, cash and cash equivalents as determined in accordance with GAAP or as an indicator of our operating performance or liquidity.
Previous wording
The following table provides a reconciliation of our cash and cash equivalents to net debt, utilizing details of classifications from our condensed consolidated balance sheets:
Current wording
The following table provides a reconciliation of our cash and cash equivalents to net cash, utilizing details of classifications from our condensed consolidated balance sheets:
Previous wording
Investing cash flows - Investing activities provided $36.7 million of cash during the nine months ended September 30, 2024 as compared to $63.5 million cash used in investing cash flows during the same period in 2023. The increase of $100.2 million in cash from investing activities was primarily due to $186.1 million in proceeds received from the sale of MSB, which was partially offset by a decrease of $69.8 million from proceeds of sale of other assets as compared to the same period in 2023.
Current wording
Investing cash flows - Investing activities used $58.2 million of cash during the three months ended March 31, 2025 as compared to $136.3 million of cash provided by investing activities during the same period in 2024. The decrease of $194.5 million in cash provided by investing activities was primarily due to $186.1 million in proceeds received from the sale of MSB during the three months ended March 31, 2024 and an increase in capital expenditures of 9.8 million in 2025 as compared to the same period in 2024.
Previous wording
Financing cash flows - Financing activities used $522.5 million and $276.7 million during the nine months ended September 30, 2024 and 2023, respectively. The increase of $245.8 million in cash used by financing activities was primarily due to an increase of $180.0 million in share repurchases, an increase in dividends paid of $42.9 million, and an increase of payments related to taxes withheld on share-based compensation of $32.5 million during the nine months ended September 30, 2024.
Current wording
Financing cash flows - Financing activities used $365.9 million and $256.2 million during the three months ended March 31, 2025 and 2024, respectively. The increase of $109.7 million in cash used by financing activities was mainly due to an increase of $100.0 million in share repurchases in 2025 as compared to the same period in 2024.
Previous wording
Credit Ratings - Our credit ratings with Standard and Poor’s (“S&P”) are BBB- for our long-term unsecured, guaranteed debt (2021 Notes) and BBB- for our 2012 and 2020 long-term unsecured debt (the 2012 and 2020 Private Placement Notes). Our credit rating with Moody’s is Ba1 for our long-term unsecured, guaranteed debt. See Note 12 for further details regarding our debt.
Current wording
Credit Ratings - Our credit ratings with Standard and Poor’s (“S&P”) are ‘BBB-’ for our long-term unsecured, guaranteed debt (2021 Notes) and ‘BBB-’ for our 2012 and 2020 long-term unsecured debt (the 2012 and 2020 Private Placement Notes). Our credit rating with Moody’s is ‘Baa3’ for our long-term unsecured, guaranteed debt. See Note 11 for further details regarding our debt.
Previous wording
On March 7, 2024, S&P upgraded TechnipFMC to investment grade, raising its rating to ‘BBB-’ from ‘BB+’ for both the issuer credit as well as the issue-level ratings on the Company’s senior unsecured notes. On June 27, 2024, Fitch assigned a first-time investment grade long-term issuer default rating of “BBB-” to TechnipFMC. As a result of the S&P and Fitch investment grade ratings and the satisfaction of certain other conditions precedent, the Investment Grade Debt Rating (as defined in the Credit Agreement) has occurred and the collateral securing the Credit Agreement and the Performance LC Credit Agreement was released and certain negative covenants no longer apply to the Company.
Current wording
Fitch assigned a first-time investment grade long-term issuer default rating of ‘BBB-’ to TechnipFMC. As a result of the S&P and Fitch investment grade ratings and the satisfaction of certain other conditions precedent, the Investment Grade Debt Rating (as defined in the Credit Agreement) has occurred and the collateral securing the Credit Agreement and the Performance LC Credit Agreement was released.
Previous wording
On February 20, 2024, April 23, 2024 and July 23, 2024, our Board of Directors authorized and declared a quarterly cash dividend of $0.05 per share. The cash dividends of $0.05 per share were paid on March 28, 2024, June 5, 2024, and September 4, 2024 to shareholders of record as of the close of business on the New York Stock Exchange on March 19, 2024, May 21, 2024, and August 20, 2024, respectively. The cash dividends paid during the three and nine months ended September 30, 2024 were $21.5 million and $64.7 million, respectively. We intend to pay dividends on a quarterly basis, and these dividends represent $0.20 per share on an annualized basis.
Current wording
Dividends - On February 25, 2025, the Company announced that its Board of Directors authorized and declared a quarterly cash dividend of $0.05 per share, payable on April 2, 2025 to shareholders and represents $0.20 per share on an annualized basis. The cash dividends paid during the three months ended March 31, 2025 was $21.0 million. We intend to pay dividends on a quarterly basis, subject to review and approval by our Board of Directors in its sole discretion.
Previous wording
Since the initial share repurchase authorization in July 2022, we have purchased an aggregate amount of $635.4 million of ordinary shares through September 30, 2024. Based upon the remaining repurchase authority of $164.6 million and the closing stock price as of September 30, 2024, approximately 6.3 million ordinary shares could be subject to repurchase. All shares repurchased were immediately cancelled.
Current wording
Share Repurchase - We repurchased $250.1 million of ordinary shares during the three months ended March 31, 2025. Since the initial share repurchase authorization in July 2022, we have purchased an aggregate amount of $955.5 million of ordinary shares through March 31, 2025. Based upon the remaining repurchase authority of $844.5 million and the closing stock price as of March 31, 2025, approximately 26.6 million ordinary shares could be subject to repurchase. All shares repurchased were immediately cancelled.
Previous wording
Our credit spread, and the credit spread of other counterparties not publicly available, are approximated using the spread of similar companies in the same industry, of similar size, and with the same credit rating. See Notes 17 and 18 for further details.
Current wording
Our credit spread, and the credit spread of other counterparties not publicly available, are approximated using the spread of similar companies in the same industry, of similar size, and with the same credit rating. See Notes 16 and 17 for further details.
Previous wording
We are committed to a strong balance sheet. We continue to maintain sufficient liquidity to support the needs of the business through growth, cyclicality, and unforeseen events. We continue to maintain and drive sustainable leverage to preserve access to capital throughout the cycle. Our capital expenditures can be adjusted and managed to match market demand and activity levels. Projected capital expenditures do not include all contingent capital that may be needed to respond to contract awards. In maintaining our commitment to sustainable leverage and liquidity, we expect to be able to continue to generate cash flow available for investment in growth and distribution to shareholders through the business cycle.
Current wording
We are committed to a strong balance sheet. We continue to maintain sufficient liquidity to support the needs of the business through growth, cyclicality, and unforeseen events. We continue to maintain and drive sustainable leverage to preserve access to capital throughout the cycle. Our capital expenditures can be adjusted and managed to match market demand and activity levels. Projected capital expenditures do not include any contingent capital that may be needed to respond to contract awards. In maintaining our commitment to sustainable leverage and liquidity, we expect to be able to continue to generate cash flow available for investment in growth and distribution to shareholders through the business cycle.
Previous wording
Refer to our Annual Report on Form 10-K for the year ended December 31, 2023 for a discussion of our critical accounting estimates. During the nine months ended September 30, 2024, there were no changes to our identified critical accounting estimates.
Current wording
Refer to our Annual Report on Form 10-K for the year ended December 31, 2024 for a discussion of our critical accounting estimates. During the three months ended March 31, 2025, there were no changes to our identified critical accounting estimates.
Rearranged current paragraphs (1)
Current report — wording carried from elsewhere
On March 7, 2024, S&P upgraded TechnipFMC to investment grade, raising its rating to ‘BBB-’ from ‘BB+’ for both the issuer credit as well as the issue-level ratings on the Company’s senior unsecured notes. On June 27, 2024,
Rearranged previous paragraphs (4)
Previous report — wording carried elsewhere
Selling, general and administrative expense increased $3.6 million year-over-year, driven by higher employee costs in support of increased business activities.
Previous report — wording carried elsewhere
CONSOLIDATED RESULTS OF OPERATIONS OF TECHNIPFMC PLC
Previous report — wording carried elsewhere
SEGMENT RESULTS OF OPERATIONS OF TECHNIPFMC PLC
Previous report — wording carried elsewhere
On October 23, 2024, the Company announced that its Board of Directors authorized and declared a quarterly cash dividend of $0.05 per share, payable on December 4, 2024 to shareholders of record as of the close of business on the New York Stock Exchange on November 19, 2024. The ex-dividend date is November 19, 2024.