TechnipFMC plc

Previous wording

Overall Outlook – The global economy is expected to show moderate growth in 2026, led by India, China, and the United States. Resilient consumer spending and easing of monetary policy in key regions should be essential drivers of economic growth. Continued investment in artificial intelligence (AI) is expected to provide additional support. The expanded military activity in the Middle East, shifting trade and inflation dynamics, and an uneven global recovery present risk to the growth outlook.

Current wording

Overall Outlook - The global economy is expected to show moderate growth in 2026, led by India, China, and the United States. Resilient consumer spending and easing of monetary policy in key regions should be essential drivers of economic growth. Continued investment in artificial intelligence (AI) is expected to provide additional support. Military activity in the Middle East, shifting trade and inflation dynamics, and an uneven global recovery present risk to the growth outlook.

Previous wording

Persistent geopolitical conflict underscores the strategic importance of energy security worldwide. The current conflict in the Middle East also demonstrates how quickly regional disruptions in the production and transportation of oil and natural gas can impact the balance of global supply. We believe the significant impacts to both security and energy supply resulting from the current conflict are likely to have lasting impacts on the perceived risk assigned to the region.

Current wording

Persistent geopolitical conflict underscores the strategic importance of energy security worldwide. The current conflict in the Middle East also demonstrates how quickly regional disruptions in the production and transportation of oil and natural gas can impact the balance of global supply. We believe the significant impacts to both security and energy supply resulting from the conflict are likely to have lasting effects on the perceived risk assigned to the region.

Previous wording

The long-term outlook for oil and natural gas remains positive. Oil is projected to remain the largest primary energy source, with global demand for natural gas projected to significantly increase, largely due to growth in both electricity demand and industrial activity in developing countries. A significant portion of future gas needs will be sourced from offshore reservoirs, utilizing liquified natural gas (“LNG”) infrastructure to enable transport from major gas producing regions—including the Middle East, Asia Pacific, and Africa—to a broader set of consuming economies. Renewables investment continues, although at a slower pace than previously forecast. Notably, the International Energy Agency revised its market outlook, projecting that oil demand could grow through 2050—a major shift from its previous view that demand would peak by 2030.

Current wording

The long-term outlook for oil and natural gas remains positive. Oil is projected to remain the largest primary energy source, with global demand for natural gas projected to significantly increase, largely due to growth in both electricity demand and industrial activity in developing countries. A significant portion of future gas needs will be sourced from offshore reservoirs, utilizing liquefied natural gas (“LNG”) infrastructure to enable transport from major gas producing regions—including the Middle East, Asia Pacific, and Africa—to a broader set of consuming economies. Renewables investment continues, although at a slower pace than previously forecast. Notably, the International Energy Agency revised its market outlook, projecting that oil demand could grow through 2050—a major shift from its previous view that demand would peak by 2030.

Previous wording

In our New Energy business, we are executing multiple first-of-its-kind project awards, including the Mero 3 HISEP® project for Petrobras offshore Brazil. This project is enabling the capture, processing, and reinjection of CO 2-rich dense gases on the seabed to reduce emission intensity while increasing production. In the UK, we are executing the first all-electric, subsea iEPCI™ for carbon capture and storage for the Northern Endurance Partnership, a joint venture between bp, Equinor, and TotalEnergies.

Current wording

In our New Energy business, we are executing multiple first-of-its-kind project awards, including the Mero 3 HISEP® project for Petrobras offshore Brazil. This project is enabling the capture, processing, and reinjection of CO 2-rich dense gases on the seabed to reduce emission intensity while increasing production. In the UK, we are executing the first all-electric, subsea integrated engineering, procurement, construction and installation (“iEPCI®”)for carbon capture and storage for the Northern Endurance Partnership, a joint venture between bp, Equinor, and TotalEnergies.

Previous wording

Gross profit (revenue less cost of sales) increased to $585.3 million during the three months ended March 31, 2026 compared to $464.9 million in the prior year period. The increase was primarily attributable to an increase in Subsea gross profit of$117.9 million, of which $63.5 million was due to favorable activity mix and $54.4 million was due to volume increase.

Current wording

Gross profit (revenue less cost of sales) increased to $684.7 million during the three months ended June 30, 2026, compared to $593.3 million in the prior-year period. The increase was primarily attributable to an increase in Subsea gross profit of $104.8 million, of which $62.8 million was due to volume increase and $42.1 million was due to favorable activity mix.

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 other non-operating gains and losses. This line item improved year-over-year by $35.9 million, from a net expense in the prior year period to net income during the three months ended March 31, 2026, primarily due to a $24.9 million favorable change in foreign currency impacts, driven by foreign currency losses in the prior year compared to gains in the current year, and an $11.0 million decrease in miscellaneous other non-operating charges.

Current wording

Other expense, net increased $8.0 million year-over-year, primarily due to higher foreign currency remeasurement losses, partially offset by lower non-operating charges. Other expense, net primarily includes foreign currency remeasurement gains and losses on net monetary assets and liabilities, gains and losses on sales of property, plant and equipment, and other non-operating items.

Previous wording

The provision for income taxes for the three months ended March 31, 2026 and 2025 was $95.9 million and $87.0 million, respectively, resulting in effective tax rates of 27.0% and 37.8%, respectively. The decrease in effective tax rate is primarily due to nonrecurring accruals related to uncertain tax positions and taxes on undistributed earnings recorded in March 2025.

Current wording

The provision for income taxes for the three months ended June 30, 2026 and 2025 was $114.1 million and $106.5 million, respectively, resulting in effective tax rates of 24.0% and 28.4%, respectively. The decrease in effective tax rate is primarily due to the geographic distribution of earnings.

Previous wording

Revenue increased by $259.1 million during the three months ended March 31, 2026, compared to the prior year period. The increase was primarily attributable to an increase in Subsea revenue of $272.2 million. This growth was driven by the conversion of backlog, which was 17.4% higher as of December 31, 2025, when compared to December 31, 2024, resulting in increased revenue activity across iEPCI™, flexible supply, SPS supply and subsea services, particularly in Brazil, Mozambique, and Suriname. This increase was partially offset by lower activity in Indonesia, the United Kingdom, and Surface Technologies.

Current wording

Revenue increased by $487.5 million during the six months ended June 30, 2026, compared to the prior-year period. The increase was primarily attributable to an increase in Subsea revenue of $542.8 million. This growth was driven by the conversion of backlog, which was 17.4% higher as of December 31, 2025, when compared to December 31, 2024, resulting in increased revenue activity across iEPCI®, SPS supply and services activities, particularly in Latin America, Africa, and the Middle East. This increase was partially offset by lower activity in Europe and North America.

Previous wording

Selling, general and administrative expense increased by $31.7 million for the three months ended March 31, 2026, compared to the same period in 2025, primarily driven by higher share-based compensation expenses.

Current wording

Selling, general and administrative expense increased by $27.8 million for the six months ended June 30, 2026, compared to the same period in 2025, primarily driven by higher share-based compensation expenses.

Previous wording

Net interest expense of $6.0 million decreased by $3.9 million in the three months ended March 31, 2026, compared to the same period in 2025, primarily due to the reduction in outstanding debt year-over-year.

Current wording

Net interest expense of $9.6 million decreased by $14.7 million in the six months ended June 30, 2026, compared to the same period in 2025, primarily due to the reduction in outstanding debt year-over-year.

Previous wording

Subsea revenue increased by $272.2 million during the three months ended March 31, 2026, compared to the same period in 2025, driven by increased backlog during 2025 related to higher energy demand and upstream spending, further aided by our unique commercial offerings. The increase in revenue was driven by $190.4 million from Brazil, $105.7 million from Mozambique, and $100.0 million from Suriname, and higher iEPCI™, flexible supply, SPS supply and services activities. The rest of the world contributed a net decrease of $123.8 million primarily driven by project completions mainly in Indonesia for $98.0 million.

Current wording

Subsea revenue increased by $542.8 million during the six months ended June 30, 2026, compared to the same period in 2025, driven by increased backlog during 2025 related to higher energy demand and upstream spending, further aided by our unique commercial offerings. The increase in revenue was driven byiEPCI®, SPS supply and services activities, primarily $376.9 million from Latin America, $218.0 million from Africa and $82.7 million from the Middle East. The rest of the world contributed a net decrease of $134.8 million primarily driven by project completions mainly in Europe for $67.2 million and North America for $40.5 million.

Previous wording

Subsea operating profit for the three months ended March 31, 2026 increased by $101.1 million compared to the prior-year period. This was largely due to favorable activity mix, which contributed $63.5 million, and higher volume, which added $54.3 million. These improvements were partially offset by a $16.7 million increase in operating expense related to higher activity.

Current wording

Subsea operating profit for the six months ended June 30, 2026 increased by $207.3 million compared to the prior-year period. This was largely due to higher volume, which contributed $126.0 million, and favorable activity mix, which added $96.8 million. These improvements were partially offset by a $15.5 million increase in operating expense related to higher activity.

Previous wording

Corporate expense increased by $11.3 million, compared to the prior-year period, primarily driven by an increase in share-based compensation expense.

Current wording

Corporate expense increased by $11.1 million, compared to the prior-year period, primarily driven by an increase in share-based compensation expense recognized during the first quarter of 2026.

Previous wording

Subsea - Subsea backlog of $15,800.4 million as of March 31, 2026 decreased by $71.3 million compared to December 31, 2025, and was composed of various subsea projects, including TotalEnergies Mozambique LNG and GranMorgu; bp Tiber, Kaskida and NEP; Equinor Raia and Johan Sverdrup Phase 3; Petrobras Mero 3 HISEP® and Global 24; Shell Orca; ExxonMobil Hammerhead and Whiptail; ENI Coral North, Energean Katlan and Woodside Great Western Flank Phase 4.

Current wording

Subsea - Subsea backlog of $15,833.2 million as of June 30, 2026 decreased by $38.5 million compared to December 31, 2025, and was composed of various subsea projects, including TotalEnergies Mozambique LNG and GranMorgu; bp Tiber, Kaskida and NEP; Petrobras Mero 3 HISEP® and Global 24; Shell Orca; Equinor Raia; Vår Energi Ofelia & Gjøa Nord; ENI Coral North; Woodside Great Western Flank Phase 4, and Energean Katlan.

Previous wording

Surface Technologies - Order backlog for Surface Technologies as of March 31, 2026 decreased by $32.3 million compared to December 31, 2025. Surface Technologies’ backlog of $667.6 million as of March 31, 2026, 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, 2026 decreased by $93.1 million compared to December 31, 2025. Surface Technologies’ backlog of $606.8 million as of June 30, 2026, 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 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.

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 U.S. GAAP or as an indicator of our operating performance or liquidity.

Previous wording

Operating cash flows - Operating activities provided $332.5 million and $441.7 million during the three months ended March 31, 2026 and, 2025, respectively. The decrease of $109.2 million in cash from operating activities was primarily due to working capital timing differences, including vendor payments and cash collections, partially offset by higher net income in the three months ended March 31, 2026 compared to the same period in 2025.

Current wording

Operating cash flows - Operating activities provided $880.5 million and $785.9 million during the six months ended June 30, 2026 and 2025, respectively. The increase of $94.6 million in cash from operating activities was primarily driven by higher net income and certain working capital timing benefits, partially offset by increases in trade receivables and contract assets and lower contract liability inflows in the six months ended June 30, 2026 compared to the same period in 2025.

Previous wording

Investing cash flows - Investing activities required $53.6 million and $58.2 million during the three months ended March 31, 2026 and 2025, respectively. The decrease of $4.6 million in cash used by investing activities was primarily driven by a $6.2 million reduction in capital expenditures in the three months ended March 31, 2026 compared to the same period in 2025.

Current wording

Investing cash flows - Investing activities required $110.3 million and $140.8 million during the six months ended June 30, 2026 and 2025, respectively. The decrease of $30.5 million in cash used by investing activities was primarily driven by a $29.7 million reduction in capital expenditures in the six months ended June 30, 2026 compared to the same period in 2025.

Previous wording

Financing cash flows - Financing activities required $350.9 million and $365.9 million during the three months ended March 31, 2026 and 2025, respectively. The decrease of $15.0 million in cash used by financing activities was primarily driven by an increase of $37.9 million from hedging settlements within other financing activities and a $6.7 million reduction in debt repayments. These decreases were partially offset by increases of $14.7 million in share repurchases and $14.3 million in payments of taxes withheld on share-based compensation in the three months ended March 31, 2026 compared to the same period in 2025.

Current wording

Financing cash flows - Financing activities required $810.0 million and $880.8 million during the six months ended June 30, 2026 and 2025, respectively. The decrease of $70.8 million in cash used by financing activities was primarily driven by a $226.6 million reduction in debt repayments and an increase of $37.9 million from hedging settlements. These decreases were partially offset by increases of $184.7 million in share repurchases and $8.6 million in payments of taxes withheld on share-based compensation in the six months ended June 30, 2026 compared to the same period in 2025.

Previous wording

Dividends - On February 17, 2026, the Company announced that its Board of Directors authorized and declared a quarterly cash dividend of $0.05 per share, payable on April 1, 2026 to shareholders and represents $0.20 per share on an annualized basis. The cash dividends paid during the three months ended March 31, 2026 were $19.9 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 - The cash dividends paid during the six months ended June 30, 2026 were $39.7 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 $264.8 million of ordinary shares during the three months ended March 31, 2026. Based upon the remaining repurchase authority of $1.9 billion and the closing stock price as of March 31, 2026, approximately 27.6 million ordinary shares could be subject to repurchase. All shares repurchased were immediately cancelled.

Current wording

Share Repurchase - We repurchased $684.9 million of ordinary shares during the six months ended June 30, 2026. Based upon the remaining repurchase authority of $1.5 billion and the closing stock price as of June 30, 2026, approximately 22.5 million ordinary shares could be subject to repurchase. All shares repurchased were cancelled.

Previous wording

Refer to our Annual Report on Form 10-K for the year ended December 31, 2025 for a discussion of our critical accounting estimates. During the three months ended March 31, 2026, 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, 2025 for a discussion of our critical accounting estimates. During the six months ended June 30, 2026, there were no changes to our identified critical accounting estimates.