TechnipFMC Q1: Subsea Momentum Offsets Surface Weakness

Transcript intelligence

What changed

Subsea opportunity value increased to $30 billion over the next 24 months, while Subsea 2.0 is expected to represent just over half of revenue by 2027. Surface Technologies was weaker because of Middle East scheduling, although North American completion activity provided a partial offset.

Guidance delta

Management maintained its outlook and expressed confidence in exceeding $2.1 billion of total 2026 EBITDA. Subsea Q2 EBITDA margin was projected at 23%, while the company continued targeting at least $10 billion of annual Subsea orders.

Key takeaways

• Q1 revenue was $2.5 billion, adjusted EBITDA was $453 million, and free cash flow was $277 million.
• Subsea orders totaled $1.9 billion, with the company on track for a $10 billion annual Subsea order book.
• The Subsea opportunity list reached $30 billion over the next 24 months, its seventh consecutive quarterly increase.
• Subsea 2.0 and iEPCI remain central to cycle-time reduction and margin expansion.
• Surface Technologies revenue declined 12% quarter over quarter because of Middle East scheduling, partly offset by higher North American completion activity.

Management priorities

• Scale Subsea 2.0 and iEPCI adoption.
• Continue SURF 2.0 industrialization and improve efficiency.
• Expand flexible-pipe capacity without new capital projects.
• Advance HISEP CO2 transport and storage initiatives.
• Maintain capital spending around 3% of revenue and return at least 70% of free cash flow to shareholders.