TechnipFMC plc

Previous wording

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 wording

Overall Outlook – Economic growth is expected to continue in 2025, although it remains vulnerable to persistent inflationary pressures, global trade tensions, and regional conflicts. Central banks continue to navigate a balance between growth and price stability — with progress uneven across regions. At the same time, economic sanctions and other measures imposed to end persistent geopolitical conflicts create additional risks to global energy markets, underscoring the strategic importance of energy security worldwide.

Previous wording

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 wording

We maintain a positive long-term outlook for both oil and natural gas given anticipated growth in energy demand. Growth in near-term oil supply is likely to be supported by OPEC+ as member nations restore previously curtailed production. However, affordability and energy security remain major considerations. Our long-term outlook is further supported by our clients’ prioritization of the development of conventional oil and natural gas resources, while also progressing energy transition efforts.

Previous wording

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 wording

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 the delivery of both conventional and new 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.

Previous wording

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 wording

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 we have made the investment needed to assist our customers in achieving their desired growth in production. This represents a differentiated growth opportunity for our company.

Previous 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.

Current wording

The provision for income taxes for the three months ended June 30, 2025 and 2024 was $106.5 million and $59.2 million, respectively, resulting in effective tax rates of 28.4% and 24.1%, 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

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.

Current wording

Revenue increased by $400.7 million during the six months ended June 30, 2025, compared to the prior year period. The increase was primarily attributable to higher Subsea revenue which increased by $408.6 million. This growth was driven by the conversion of a backlog, up 11.1% higher as of December 31, 2024, when compared to December 31, 2023, resulting in increased revenue activity across iEPCI™, flexible supply and services activities, particularly in Norway, Indonesia, Israel, Brazil and Nigeria. Surface Technologies revenue decreased by $7.9 million for the same comparable period, reflecting a $42.0 million decrease from lower activity in North America, Europe, Latin America, Africa and the sale of MSB. This decrease was partially offset by a $34.1 million increase in revenue from higher activity in the Middle East.

Previous wording

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 wording

Gross profit (revenue less cost of sales) increased to $1,058.2 million during the six months ended June 30, 2025 compared to $842.3 million in the prior-year period. Subsea gross profit increased year-over-year by $209.0 million, of which $128.4 million was due to favorable activity mix and $80.6 million due to volume increase. Surface Technologies gross profit increased by $5.8 million compared to the same period in 2024. The increase was primarily due to a $26.8 million improvement in the Middle East and Europe, partially offset by lower activity in North America, the other international markets and the sale of MSB during the six months ended June 30, 2024, which collectively decreased gross profit by $21.0 million.

Previous 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.

Current wording

Selling, general and administrative expense increased by $22.7 million during the six months ended June 30, 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 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.

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 decrease in expense of $16.1 million was driven by a decrease in foreign currency loss of $22.2 million, which was partially offset by an increase in miscellaneous other non-operating charges.

Previous 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.

Current wording

For the six months ended June 30, 2025 and 2024, we recorded income from equity method affiliates of $19.7 million and $4.0 million, respectively, driven by an increase in operational activity of our joint ventures.

Previous 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.

Current wording

Net interest expense of $24.3 million decreased by $9.8 million in the six months ended June 30, 2025, compared to the same period in 2024, primarily due to the reduction in outstanding debt.

Previous 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.

Current wording

Subsea revenue increased by $408.6 million during the six months ended June 30, 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. $124.7 million of the increase in revenue was from Norway, $124.3 million from Indonesia, $108.7 million from Israel, $97.5 million from Brazil and $88.7 million from Nigeria, driven by higher iEPCI™, flexible supply and services activities. The rest of the world contributed a net decrease of $133.2 million primarily due to completion of projects in the United States of $210.2 million.

Previous 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.

Current wording

Subsea operating profit for the six months ended June 30, 2025 increased by $193.9 million compared to the prior-year period. This was largely due to favorable activity mix, which contributed $128.4 million, and higher volume, which added $80.6 million. These improvements were partially offset by a $15.1 million increase in operating expense related to higher activity.

Previous wording

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 wording

Surface Technologies revenue decreased by $7.9 million for the same comparable period, reflecting a $42.0 million decrease from lower activity in North America, Europe, Latin America, Africa and the sale of MSB. This decrease was partially offset by a $34.1 million increase in revenue from higher activity in the Middle East.

Previous wording

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 wording

Surface Technologies operating profit decreased by $80.4 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 first quarter of 2024 and $16.4 million higher restructuring and impairment costs recorded during the six months ended June 30, 2025. Excluding these exceptional items, operating profit increased by $11.2 million compared to the same period in 2024. This increase was primarily due to $23.3 million of improved profitability from the Middle East and Europe, partially offset by lower activity in North America and the other international markets, which collectively resulted in a decrease of $12.1 million of operating profit.

Previous 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.

Current wording

Corporate expense decreased by $3.5 million, compared to the prior-year period, primarily driven by $5.2 million of transaction costs associated with the sale of MSB during the six months ended June 30, 2024.

Previous 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.

Current wording

Subsea - Subsea backlog of $15,810.0 million as of June 30, 2025 increased by $2,291.9 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 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.

Current wording

Surface Technologies - Order backlog for Surface Technologies as of June 30, 2025 decreased by $22.3 million compared to December 31, 2024. Surface Technologies’ backlog of $835.9 million as of June 30, 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

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 wording

Operating cash flows - Operating activities provided $785.9 million and $104.2 million during the six months ended June 30, 2025 and, 2024, respectively. The increase of $681.7 million in cash from operating activities was primarily due to increased volume and an improved mix of projects resulting in strong cash collections, advance payments from customers to support the higher business activity and the fluctuations in derivative assets and liabilities.

Previous 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.

Current wording

Investing cash flows - Investing activities used $140.8 million of cash during the six months ended June 30, 2025 as compared to $87.1 million provided during the same period in 2024. The decrease of $227.9 million in cash provided by investing activities was primarily due to $186.1 million in proceeds received from the sale of MSB during the six months ended June 30, 2024 and an increase in capital expenditures of $42.6 million in 2025 as compared to the same period in 2024.

Previous 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.

Current wording

Financing cash flows - Financing activities used $880.8 million and $417.9 million during the six months ended June 30, 2025 and 2024, respectively. The increase of $462.9 million in cash used by financing activities was mainly due to an increase of $250.1 million in share repurchases and an increase in debt repayments of $176.2 million in 2025, primarily for the repayment of the 5.75% 2020 Private Placement Notes, which matured during the period.

Previous wording

Availability of borrowings under the Revolving Credit Facility is reduced by the outstanding letters of credit issued against the facility. As of March 31, 2025, there were no letters of credit outstanding, and our availability of borrowings under the Revolving Credit Facility was $1,250.0 million.

Current wording

Availability of borrowings under the Revolving Credit Facility is reduced by outstanding commercial paper and letters of credit issued against the facility. As of June 30, 2025, there were no letters of credit or commercial paper outstanding, and our availability under the Revolving Credit Facility was $1,250.0 million.

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 ‘Baa3’ for our long-term unsecured, guaranteed debt. See Note 11 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 long-term unsecured debt (the 2012 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

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.

Current 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-’ for TechnipFMC. As a result of the S&P and Fitch investment grade ratings and the satisfaction of certain other conditions precedent, the Investment Grade Date (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 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.

Current wording

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 2021 Notes.

Previous 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.

Current wording

Dividends - On April 22, 2025, the Company announced that its Board of Directors authorized and declared a quarterly cash dividend of $0.05 per share, payable on June 4, 2025 to shareholders and represents $0.20 per share on an annualized basis. The cash dividends paid during the six months ended June 30, 2025 was $41.6 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

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.

Current wording

Share Repurchase - We repurchased $500.2 million of ordinary shares during the six months ended June 30, 2025. Since the initial share repurchase authorization in July 2022, we have purchased an aggregate amount of $1,205.6 million of ordinary shares through June 30, 2025. Based upon the remaining repurchase authority of $594.4 million and the closing stock price as of June 30, 2025, approximately 17.3 million ordinary shares could be subject to repurchase. All shares repurchased were immediately cancelled.

Previous 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.

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 six months ended June 30, 2025, there were no changes to our identified critical accounting estimates.