TechnipFMC Beats Q2 Estimates on Strong Performance of Subsea Segment

TechnipFMC plc FTI reported second-quarter 2025 adjusted earnings of 68 cents per share, which beat the Zacks Consensus Estimate of 57 cents. The bottom line also topped the year-ago quarter’s reported profit of 43 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 $2.5 billion beat the Zacks Consensus Estimate by 2.2%. 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 QuoteAdjusted EBITDA for the Subsea unit totaled $482.9 million, which beat the Zacks Consensus Estimate of $453 million. The same for the Surface Technologies unit was $52.3 million, which also beat the consensus mark of $48.6 million.FTI’s second-quarter inbound orders decreased 8.4% from the year-ago period’s level to $3.1 billion. The company’s backlog rose at the same time. TechnipFMC’s order backlog totaled $16.6 billion as of June-end, up 19.8% from the year-ago quarter.On July 22, 2025, FTI’s board of directors declared a quarterly cash dividend of 5 cents per share to its common shareholders of record as of Aug. 19. The payout, unchanged from the previous quarter, will be made on Sept. 3, 2025.During the quarter, the company repurchased its 8.3 million common shares for a total of $250.1 million. Including a dividend payment of $20.6 million, total shareholder returns for the quarter amounted to $270.7 million.Segmental Analysis of TechnipFMCSubsea: Revenues from this segment totaled $2.2 billion, up 10.3% from the year-ago quarter’s $2 billion. Revenue growth was driven by increased iEPCI project activity in the North Sea and higher installation activity and flexible pipe supply in Brazil. Moreover, the figure beat our projection by 2.1%.Adjusted EBITDA in the subsea segment was up about 35.5% from the year-ago quarter’s level. The performance of this segment improved due to strong execution, improved earnings mix from backlog, and higher project and services activity. Additionally, FTI’s inbound orders from this segment decreased 10% year over year to $2.6 billion. The backlog rose 22.3% at the same time.Surface Technologies: This segment recorded revenues of $318.4 million, up 0.6% year over year. Moreover, the metric beat our projection of $314 million.The unit's adjusted EBITDA increased 13.7%, primarily due to higher project and services activity in the Middle East. The segment’s inbound orders rose 9.3% year over year. However, the quarter-end backlog decreased 14.1% at the same time.FTI’s FinancialsTechnipFMC reported $2.1 billion in costs and expenses, up 6.3% from the year-ago quarter’s $2 billion.In the quarter, the company invested $83.6 million in capital programs and generated $344.2 million in cash flow from operations, while reporting free cash flow of $260.6 million.As of June 30, FTI had cash and cash equivalents worth $950 million and long-term debt of $425.1 million, with a debt-to-capitalization of 11.6%.TechnipFMC’s 2025 OutlookThe 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 15% and 16% for the Surface Technologies segment.This Zacks Rank #3 (Hold) company now expects free cash flow in the band of $1 billion to $1.15 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 GlanceWhile we have discussed FTI’s second-quarter results in detail, let us take a look at three other key reports in this space.Oil and gas equipment and services provider, Liberty Energy LBRT, reported a second-quarter 2025 adjusted net income of 12 cents per share, missing the Zacks Consensus Estimate of 14 cents. Moreover, the bottom line decreased sharply from the year-ago quarter’s reported figure of 61 cents. The company's underperformance can be attributed to increased macroeconomic uncertainty combined with energy sector volatility and a reduction in customer activity.LBRT's revenues totaled $1 billion, which beat the Zacks Consensus Estimate by $37 million. Moreover, the top line decreased from the prior-year quarter’s level of $1.2 billion by 10% due to softening of completions activity. As of June 30, Liberty Energy had approximately $19.6 million in cash and cash equivalents. The pressure pumper’s long-term debt of $160 million represented a debt-to-capitalization of 7.3%.Another oil and gas equipment and services provider, Halliburton Company HAL, reported second-quarter 2025 adjusted net income per share of 55 cents, which was in line with the Zacks Consensus Estimate but below the year-ago quarter’s profit of 80 cents (adjusted). The numbers reflect softer activity in the North American region, partly offset by international growth. Meanwhile, revenues of $5.5 billion were 5.5% lower year over year but beat the Zacks Consensus Estimate by 1.1%. As of June 30, 2025, the company had approximately $2 billion in cash/cash equivalents and $7.2 billion in long-term debt, representing a debt-to-capitalization ratio of 40.4. HAL bought back $250 million worth of its stock during the April-June period. The company generated $896 million of cash flow from operations in the second quarter, leading to a free cash flow of $582 million.   Baker Hughes Company BKR reported second-quarter 2025 adjusted earnings of 63 cents per share, which beat the Zacks Consensus Estimate of 55 cents. The bottom line also improved from the year-ago level of 57 cents.Total quarterly revenues of $6,910 million beat the Zacks Consensus Estimate of $6,633 million. The top line increased from the year-ago quarter’s $6,418 million.The strong quarterly results were primarily driven by cost improvements and operational efficiency.BKR’s net capital expenditure in the second quarter was $271 million. As of June 30, 2025, it had cash and cash equivalents of $3,087 million. BKR had a long-term debt of $5,968 million at the end of the reported quarter, with a debt-to-capitalization of 25.8%.Higher. Faster. Sooner. Buy These Stocks NowA small number of stocks are primed for a breakout, and you have a chance to get in before they take off.At any given time, there are only 220 Zacks Rank #1 Strong Buys. On average, this list more than doubles the S&P 500. We’ve combed through the latest Strong Buys and selected 7 compelling companies likely to jump sooner and climb higher than any other stock you could buy this month.You'll learn everything you need to know about these exciting trades in our brand-new Special Report, 7 Best Stocks for the Next 30 Days.Download the report free now >>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 Halliburton Company (HAL): Free Stock Analysis Report TechnipFMC plc (FTI): Free Stock Analysis Report Baker Hughes Company (BKR): Free Stock Analysis Report Liberty Energy Inc. (LBRT): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks