TechnipFMC plc

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

CONSOLIDATED RESULTS OF OPERATIONS OF TECHNIPFMC PLC

THREE MONTHS ENDED MARCH 31, 2025 AND 2024

Revenue

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.

Gross Profit

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.

Selling, General and Administrative Expense

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.

Other Expense, Net

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.

Gain on disposal of Measurement Solutions business

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.

Income from Equity Affiliates

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.

Net Interest Expense

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.

Provision for Income Taxes

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.

SEGMENT RESULTS OF OPERATIONS OF TECHNIPFMC PLC

THREE MONTHS ENDED MARCH 31, 2025 AND 2024

Subsea

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.

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.

Surface Technologies

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.

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.

Corporate Expense

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.