TechnipFMC Beats Q3 Earnings on Strong Performance of Subsea Segment

TechnipFMC plc FTI reported third-quarter 2025 adjusted earnings of 75 cents per share, which beat the Zacks Consensus Estimate of 65 cents. The bottom line also topped the year-ago quarter’s reported profit of 64 cents. The outperformance is primarily driven by strong results in the Subsea segment.

Houston, TX-based oil and gas equipment and services provider’s revenues of $2.6 billion beat the Zacks Consensus Estimate by 1.2%. Moreover, the top line increased from the year-ago quarter’s reported figure of $2.3 billion.

TechnipFMC plc Price, Consensus and EPS Surprise

TechnipFMC plc price-consensus-eps-surprise-chart | TechnipFMC plc Quote

Adjusted EBITDA for the Subsea unit totaled $505.6 million, which beat the Zacks Consensus Estimate of $493 million. The same for the Surface Technologies unit was $53.8 million, which also beat the consensus mark of $52 million.

FTI’s third-quarter inbound orders decreased 4.9% from the year-ago period’s level to $2.6 billion. The company’s backlog rose at the same time. TechnipFMC’s order backlog totaled $16.8 billion as of September-end, up 14.4% from the year-ago quarter.

On Oct. 22, 2025, FTI’s board of directors authorized additional share repurchases of up to $2 billion. Including the remaining balance from its existing program, the company now has authorization to repurchase up to $2.3 billion worth of shares, equivalent to nearly 16% of its outstanding stock based on the closing price as of Oct. 21, 2025. FTI also declared a quarterly cash dividend of 5 cents per share to its common shareholders of record as of Nov. 18. The payout, which remains unchanged from the previous quarter, will be made on Dec. 3, 2025.

During the quarter, the company repurchased its 6.5 million common shares for a total of $250 million. Including a dividend payment of $20.5 million, total shareholder returns for the quarter amounted to $270.5 million.

Q3 Segmental Analysis of TechnipFMC

Subsea: Revenues from this segment totaled $2.3 billion, up 14.4% from the year-ago quarter’s $2 billion. Revenue growth was driven by increased project activity, particularly iEPCI™ projects, in Africa, the Americas and Australia. Moreover, the figure beat our projection by 1.7%.

Adjusted EBITDA in the subsea segment was up about 36.3% from the year-ago quarter’s level. The performance of this segment improved, backed by higher project activity. However, FTI’s inbound orders from this segment decreased 3.3% year over year to $2.4 billion. The backlog rose 16.8% at the same time.

Surface Technologies: This segment recorded revenues of $328.1 million, up 2.4% year over year, driven by higher activity in the North Sea and Asia Pacific. Moreover, the metric beat our projection of $325 million.

The unit's adjusted EBITDA increased 9.6%, primarily driven by higher activity in international markets. The segment’s inbound orders fell 17% year over year. However, the quarter-end backlog decreased 19.8% at the same time.

FTI’s Financials

TechnipFMC reported $2.2 billion in costs and expenses, up 8.8% from the year-ago quarter’s $2.1 billion.

In the quarter, the company invested $77.3 million in capital programs and generated $525.1 million in cash flow from operations, while reporting free cash flow of $447.8 million.

As of Sept. 30, FTI had cash and cash equivalents worth $876.6 million and long-term debt of $404.1 million, with a debt-to-capitalization of 10.8%.

TechnipFMC’s 2025 Outlook

The company expects revenues from the Subsea unit in the range of $8.4-$8.8 billion for 2025. It also anticipates revenues between $1.2 billion and $1.35 billion for the Surface Technologies unit.

The adjusted EBITDA margin is anticipated in the range of 19-20% for the Subsea segment and between 16% and 16.5% for the Surface Technologies segment.

This Zacks Rank #2 (Buy) company now expects an increased free cash flow in the band of $1.3 billion to $1.45 billion for 2025.

It also expects annual capital expenditure of approximately $340 million and net interest expense in the band of $45-$55 million for the year. FTI anticipates net corporate expenses in the range of $115-$125 million.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Important Earnings at a Glance

While we have discussed FTI’s third-quarter results in detail, let us take a look at three other key reports in this space.

A leading oilfield services company, Schlumberger Limited SLB, reported adjusted earnings per share of 69 cents, beating the Zacks Consensus Estimate of 66 cents. It recorded total quarterly revenues of $8.9 billion, which was roughly in line with the Zacks Consensus Estimate. SLB’s robust numbers reflect growth in the Digital segment and two months of contribution from the ChampionX acquisition.

The company reported a free cash flow of $1.1 billion in the third quarter. As of Sept. 30, 2025, SLB had approximately $3.6 billion in cash and short-term investments. It registered a long-term debt of $10.8 billion at the end of the quarter.

Another oil and gas equipment and services provider, Halliburton Company HAL, reported third-quarter 2025 adjusted net income per share of 58 cents, beating the Zacks Consensus Estimate of 50 cents. The outperformance primarily reflects successful cost reduction initiatives. However, HAL’s bottom line fell from the year-ago adjusted profit of 73 cents due to softer activity in the North American region.

Revenues of $5.6 billion declined 1.7% year over year but beat the Zacks Consensus Estimate by 4%.

As of Sept. 30, 2025, HAL had approximately $2 billion in cash/cash equivalents and $7.2 billion in long-term debt, representing a debt-to-capitalization ratio of 41.1. The company generated $488 million of cash flow from operations in the third quarter, leading to a free cash flow of $276 million.

The North American oilfield services company, Liberty Energy LBRT, reported an adjusted net loss of 6 cents per share, wider than the Zacks Consensus Estimate of a loss of 1 cent. Moreover, the bottom line decreased sharply from the year-ago quarter’s profit of 45 cents. Liberty Energy's underperformance can be attributed to macroeconomic headwinds accompanied by a slowdown in the industry’s frac activity and market pricing pressure.

Ahead of the earnings release, Liberty Energy’s board of directors increased the quarterly cash dividend by 13% to 9 cents per share, beginning in the fourth quarter of 2025. As of Sept. 30, the company had approximately $13.4 million in cash and cash equivalents. The pressure pumper’s long-term debt of $253 million represented a debt-to-capitalization of 10.9%.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research