TechnipFMC Raises 2026 Subsea Revenue Guidance as Q3 Earnings Grow

TechnipFMC plc reported stronger third-quarter earnings and raised its 2026 Subsea revenue guidance, supported by higher project and services activity. The company also projected at least $14.5 billion of Subsea inbound orders over the five quarters from the fourth quarter of 2026 through the fourth quarter of 2027, pointing to a substantial prospective project pipeline despite lower quarterly Subsea orders and backlog.

Revenue for the quarter ended September 30 was $2.90 billion, up from $2.65 billion a year earlier and $2.76 billion in the second quarter. Net income attributable to TechnipFMC rose to $418.4 million, or $1.05 per diluted share, from $309.7 million, or $0.75 per share, in the prior-year period.

Adjusted EBITDA was $627.8 million, compared with $518.9 million a year earlier. Excluding net foreign-exchange effects, adjusted EBITDA reached $636.4 million, up from $531.4 million in the third quarter of 2025. The corresponding margin excluding foreign exchange increased to 22.0% from 20.1%.

Total inbound orders were $2.3 billion, including $2.1 billion in Subsea. Companywide backlog stood at $16.1 billion.

Subsea activity drives revenue and margin growth

Subsea revenue increased 12% year over year and 5% sequentially to $2.60 billion. TechnipFMC attributed the sequential gain to higher project activity, particularly on integrated engineering, procurement, construction and installation projects in Indonesia and Brazil, as well as increased services activity. Lower project activity in Norway partly offset those gains.

Subsea adjusted EBITDA rose 21% from a year earlier and 6% from the second quarter to $611.6 million. The segment’s adjusted EBITDA margin reached 23.5%, compared with 21.8% a year earlier and 23.2% in the preceding quarter. The company cited strong execution and higher project and services activity.

Subsea inbound orders totaled $2.05 billion, down 14% year over year and 18% sequentially. Backlog was $15.49 billion, 3% below the prior-year level and 2% lower than at the end of the second quarter.

The company nevertheless reported continued expansion in its prospective project pipeline. The midpoint value of Subsea opportunities expected over the next 24 months increased to $32.1 billion from $30.5 billion in the second quarter, marking a ninth consecutive quarterly increase. TechnipFMC expects Subsea inbound orders of at least $14.5 billion over the next five quarters.

At September 30, the Subsea backlog schedule included $1.9 billion for 2026, $6.1 billion for 2027 and $7.5 billion for 2028 and later. The company noted that backlog does not capture all potential Subsea Services revenue.

Surface Technologies improves sequentially

Surface Technologies generated revenue of $295.8 million, up 7% sequentially but down 10% year over year. Higher activity in the Middle East and increased completion activity in North America supported the sequential increase.

Adjusted EBITDA was $53.3 million, 7% higher than in the second quarter but 1% below the prior-year period. The adjusted EBITDA margin was 18.0%, compared with 18.1% sequentially and 16.4% a year earlier.

Inbound orders rose 22% sequentially and 1% year over year to $268 million. Backlog declined 25% from a year earlier to $579 million, including $189 million scheduled for 2026 and $390 million for 2027 and beyond.

Guidance and cash generation

TechnipFMC raised its full-year 2026 Subsea revenue guidance to a range of $9.6 billion to $9.8 billion and maintained an expected adjusted EBITDA margin of 21% to 22% for the segment. Surface Technologies revenue is expected to be between $1.15 billion and $1.30 billion, with an adjusted EBITDA margin of 16.5% to 18%.

The company projects full-year free cash flow of $1.45 billion to $1.55 billion and capital expenditures of approximately $340 million. It also expects net corporate expense of $115 million to $125 million, net interest expense of $10 million to $20 million and an effective tax rate of 25% to 27%. TechnipFMC said it had initiated Subsea financial guidance for 2027.

Third-quarter cash provided by operating activities was $530.7 million. After $61.0 million of capital expenditures, free cash flow was $469.7 million. Cash and cash equivalents totaled $1.05 billion at quarter-end, while net cash, a non-GAAP measure that subtracts debt from cash and equivalents, was $645.3 million. The company distributed $340 million to shareholders during the quarter.

TechnipFMC cautioned that its outlook remains subject to risks including fluctuations in oil and natural-gas demand and prices, fixed-price contract exposure, delays in delivering backlog, reliance on suppliers and partners, tariffs and changes in trade policy, foreign-exchange movements, cyberattacks, regulatory requirements, and potential delays or cost overruns on vessels and manufacturing projects.