管理層發言
Hello, everyone. Thank you for joining us, and welcome to the TechnipFMC Second Quarter 2026 Earnings Conference Call. I will now hand the conference over to Matthew Seinsheimer, Senior Vice President, Investor Relations and Corporate Development. Matthew, please go ahead.
Thank you, Warren. Good morning and good afternoon, and welcome to TechnipFMC's Second Quarter 2026 Earnings Conference Call. Our news release and financial statements issued earlier today can be found on our website. I'd like to caution you with respect to any forward-looking statements made during this call. Although these forward-looking statements are based on our current expectations, beliefs and assumptions regarding future developments and business conditions, they are subject to certain risks and uncertainties that could cause actual results to differ materially from those expressed in or implied by these statements. Known material factors that could cause our actual results to differ from our projected results are described in our most recent 10-K, most recent 10-Q and other periodic filings with the U.S. Securities and Exchange Commission. We wish to caution you not to place undue reliance on any forward-looking statements, which speak only as of the date hereof. We undertake no obligation to publicly update or revise any of our forward-looking statements after the date they are made, whether as a result of new information, future events or otherwise. I will now turn the call over to Doug Pferdehirt, TechnipFMC's Chair and Chief Executive Officer.
Thank you, Matt. Good morning and good afternoon. Thank you for participating in our second quarter earnings call. I'm pleased to share with you another strong set of financial results, driven by robust execution across the entire organization. Total company revenue in the period was $2.8 billion. Adjusted EBITDA was $601 million with a margin of 21.8% when excluding foreign exchange impacts. We generated free cash flow of $488 million and distributed $440 million through dividends and share repurchase, delivering on our commitment to return the majority of free cash flow to shareholders. Now moving to Subsea orders. We achieved $2.5 billion of inbound in the quarter, including 4 announced awards. Much like greenfield developments, clients are now applying a portfolio approach to brownfield expansion opportunities to improve outcomes across multiple projects. These projects leverage the significant infrastructure investment already in place as clients look to prioritize their most economic opportunities.
By developing projects utilizing a consistent methodology and standardized solutions, TechnipFMC can help reduce cycle time across the portfolio of assets, significantly improving overall economics and helping clients advance projects more quickly. Var Energi's recent iEPCI awards for the Ofelia and Gjoa Nord projects in the North Sea is a great example of this approach. We will utilize our integrated model across multiple fields through coordinated portfolio execution to help deliver first oil within 2 years. In the quarter, we were also awarded subsea production systems by Equinor for a portfolio of subsea tiebacks. Leveraging our standardized solutions, we can deliver these projects with schedule certainty and lower cost for Equinor, which has plans to develop a total of 75 subsea projects on the Norwegian continental shelf over the next 9 years. Looking ahead, we will continue to benefit from a resilient and expanding offshore market.
We see a strengthening order trend in the second half of the year, providing us with confidence in achieving $10 billion of Subsea inbound in 2026. Our Subsea opportunities list once again stands at a record level, providing a robust pipeline of opportunities for projects that will extend beyond the end of the decade. Our visibility is further enhanced by deeper client collaboration and earlier engagement that bring TechnipFMC into the project development process much earlier than ever before. In the quarter, we signed an integrated global collaboration agreement with a long-standing partner, which builds on the principles that have made our iEPCI integrated commercial model successful, combining early engagement, field optimization and execution capabilities within a single framework. The expanded collaboration engages TechnipFMC up to a year earlier in the project development cycle before critical subsea architecture and investment decisions are made.
The global model will extend beyond individual projects, enabling optimization at the portfolio level while also providing greater visibility into future development opportunities. In Subsea, we consistently demonstrate our ability to execute at a very high level. This has brought certainty back into Subsea projects, giving our clients greater confidence in moving forward with final investment decisions. We expect this will drive further strength in capital flows to offshore markets. In Surface Technologies, our execution continues to support margin improvement in 2026 despite lower revenue versus the prior year. Here, our strategy has been to focus on the right customers in the right geographies and with differentiated technologies where we can achieve higher returns. In the Middle East, our Surface Technologies team was recently recognized by ADNOC for our significant role as a local manufacturer and partner within their in-country value program.
This program is central to the UAE's plan to redirect significant investment into the local economy in the years ahead. Being a recognized partner positions TechnipFMC well as the program expands and reinforces our commitment to growing alongside ADNOC and the UAE's industrial ambitions. This is a visible endorsement of the investment we have made in the country and the trust they have placed in our people and local operations. Let me close on a few points. I'm extremely pleased with our second quarter results. The strong financial performance in the period clearly demonstrates the solid momentum in our execution, thanks to the dedication of the 22,000 women and men of TechnipFMC. This gives us the confidence to raise our full year expectations for total company EBITDA. Our order outlook for Subsea remains robust. And with a book-to-bill above 1 in the quarter, we see a strengthening trend in order activity in the second half of the year.
We also reiterate our expectation for a step-up in inbound orders in 2027 and extending through the end of the decade. This growth will be supported by iEPCI, Subsea 2.0 and Subsea services, much of which will be direct awarded to our company. And as our clients move toward more collaborative approaches to develop their offshore portfolios, we will leverage our iEPCI execution model and our configurable solutions to drive further efficiencies and higher capital returns for both our customers and TechnipFMC. I will now turn the call over to Alf to discuss our financial results and importantly, our strengthened financial outlook for the balance of the year.
Thanks, Doug. Inbound in the quarter was $2.7 billion, driven by $2.5 billion of Subsea orders. Revenue in the quarter was $2.8 billion. Adjusted EBITDA was $601 million when excluding a foreign exchange loss of $19 million. Turning to segment results. In Subsea, revenue was $2.5 billion, a 13% increase versus the first quarter. The sequential revenue improvement was driven by increased project activity, particularly iEPCI projects in the North Sea and the Mediterranean, partially offset by lower activity in Africa and the U.S. Gulf. Adjusted EBITDA was $577 million, up 31% sequentially due to strong execution and higher project activity. Adjusted EBITDA margin improved to 23.2%. In Surface Technologies, revenue was $276 million, a decrease of 3% from the first quarter. The decrease was driven by reduced activity in the Middle East due to the ongoing conflict and lower activity in North America.
This was partially offset by strength in other international markets. Adjusted EBITDA was $50 million, an increase of 1% sequentially. Adjusted EBITDA improved sequentially due to strength in international markets despite the revenue decline in the Middle East. Adjusted EBITDA margin was 18.1%, up 70 basis points from the first quarter. Turning to Corporate and Other items. Corporate expense was $26 million. Net interest expense was $4 million, and tax expense was $114 million. Cash flow from operating activities was $548 million, with capital expenditures totaling $60 million in the quarter. This resulted in free cash flow of $488 million. We repurchased $420 million of stock in the second quarter. When including $20 million of dividends, total shareholder distributions were $440 million. Cash and cash equivalents was $992 million. We ended the quarter with a net cash position of $590 million.
Moving to third quarter guidance. For Subsea, we expect revenue and adjusted EBITDA margin to be in line with the second quarter. For Surface Technologies, we anticipate revenue to increase mid- to high single digits sequentially with an adjusted EBITDA margin of approximately 17.5%. Moving to our full year outlook. Beginning with Subsea, we now expect both revenue and adjusted EBITDA margin near the top end of their respective guidance ranges. For Surface Technologies, we now see revenue closer to the low end of the guidance range with adjusted EBITDA margin just above the midpoint. We continue to expect corporate expense of approximately $120 million. With these updates, we are increasing our expectation for total company adjusted EBITDA to approximately $2.19 billion for the full year when excluding foreign exchange. And finally, we now see full year free cash flow tracking towards $1.45 billion, which is the high end of our guidance range.
In summary, we delivered strong second quarter financial results with Subsea margins exceeding 23%, helping drive total company adjusted EBITDA to $601 million, excluding foreign exchange and free cash flow expanding to $488 million. We returned $725 million in total shareholder distributions in the first 6 months of the year, which equates to 95% of free cash flow. Given our longer-term expectations for the company's financial performance, we continue to see share repurchase as an attractive use of free cash flow. We have increased our expectations for total company EBITDA for 2026. And lastly, we remain confident that in 2027, we will grow Subsea inbound revenue and adjusted EBITDA margin. Operator, you may now open the line for questions.
分析師問答
Your first question comes from the line of Derek Podhaizer with Piper Sandler.
Doug, let's start with your opening comments around the brownfield opportunities that you're seeing. You talked about delivery of first oil in 2 years for brownfield or step-outs. I know previously you've talked about electrification of the brownfield being able to step out that radius 4x more than typical hydraulics. So is that what you're seeing now? Or is that still an opportunity in the future? Maybe just some more comments around the brownfield step out and potentially electrifying these operations as you move forward.
So in these particular cases, they're not necessarily enabled by the all-electric solution. What we are seeing is our customers scour their portfolios looking for marginal fields, brownfield tiebacks, and similar opportunities because in these cases the host facility exists, which allows them through a single contract with us—because of our fully integrated offering—to deliver a very short-cycle project and accelerate time to first oil. What's exciting and where the behavior has changed is in the portfolio approach. We saw this and talked about this in prior quarters in greenfield activity where customers are coming to us and, through discussions, working with us not only on a current project but on future projects, tying in and leveraging that consistency of approach and our unique iEPCI and 2.0 capabilities. We're now seeing that spill into the behavior in the brownfield markets, and we gave two examples of that with Var Energi and with Equinor that are looking at a portfolio approach.
Multiple projects under a single portfolio approach allow consistency, greater certainty in schedule delivery and shorter cycle times. That vastly improves the clients' project returns and economics and benefits us as well. The opportunity ahead is exactly what you said: growing the brownfield market. How do we grow the brownfield market? By being able to efficiently and economically tie back from further distances from the host facility. With the all-electric solution, we can increase that radius around the host facility by roughly 4x and hence reach a much greater set of marginal fields and tieback opportunities. We have many electric systems deployed around the world, and we're working with our clients to look for that greater opportunity set. As you said, that is a future opportunity for us and one that will further grow the brownfield market.
Great. That's very helpful, Doug. Next, you've talked about collaboration with your customers starting in the development life cycle a year earlier. Obviously it helps your visibility, which you've already covered in your prepared remarks. But operationally, could you expand on that comment? What is the benefit for you operationally and for the customer operationally? How does this translate into time to first oil or the overall earnings profile? Some more color around moving up in the development cycle by a year with your customers would be helpful.
Derek, it's all of the above. Being at that table a year earlier means we're well before a traditional contractor would be invited into the discussion and before even decisions around subsea architecture might be made. We're going in as a trusted adviser. Clients invite us because they see the value we bring and want us involved. The objective for the client is to accelerate time to FID—faster time, shorter cycle time to FID. From our point of view, it means securing the project, having visibility, and in many cases receiving a direct award because of the proprietary nature of our relationship. It also results in delivering a shorter cycle-time project. Within the company we live by the relentless pursuit of reduction of cycle time. That's our unique capability that allows us to win while the customer wins. This earlier engagement is critical and gives us a level of visibility and insight we've never had before.
Your next question comes from the line of Arun Jayaram with JPMorgan.
Doug, could you talk about the trajectory of orders you expect this year and how you see the inflection point in orders playing out in 2027? On a year-to-date basis, you've booked $4.4 billion of Subsea orders with a book-to-bill just below 1. Can you discuss expectations for the back half and give insights on your pipeline of direct awards that may not be on the Subsea opportunity list?
There's momentum from the first quarter into the second quarter and further momentum expected in the second half. We see a clear line of sight to the $10 billion target for 2026. What we're seeing this year is a lot of smaller projects; even in the first quarter we had few announced projects. We did have four announced projects this quarter, but many are smaller. In 2027 we expect an inflection and the return of very large greenfield opportunities, which will drive the total opportunity set. Our published opportunity list reached another record level this quarter, largely driven by those greenfield projects. That gives further strength and confidence for 2027, and we are fully committed to a step-up of orders in 2027. So it's a mix: 2026 is more marginal field tiebacks and brownfield opportunities (some greenfield as well), and 2027 will have larger projects and more greenfield opportunities. Customers are focusing on getting shorter-cycle projects out the door quickly, where we can help. I can confirm that our proprietary list of opportunities that result in direct awards to our company is growing, and it is a healthy set of opportunities we will continue to benefit from.
Great. My follow-up: could you give us any breadcrumbs on your SURF 2.0 initiatives? Where are you in terms of efforts to industrialize the other two-thirds of a subsea project—the water column and the installation? Any breadcrumbs you could share today?
For clarity, when we talk about Subsea 2.0 so far, we've referred to the industrialization of the equipment that sits on the seabed. That's happened many years ago in our company and we're benefiting from it today. About 80% of our new orders are now Subsea 2.0, and it represents about 50% of our revenue. The next step is industrializing the iEPCI—making the iEPCI 2.0. iEPCI has three components: the seabed equipment, the water column components (umbilicals, risers, flow lines, fiber, electrical), and the installation of all that equipment. The water column and the installation represent the two-thirds that have yet to be industrialized. Moving from Subsea 2.0 to a fully industrialized iEPCI 2.0 has significant upside because the water column and installation have not been industrialized yet. It's a major focus for me; we've made encouraging progress and are working on disruptive technologies and processes that will be part of iEPCI 2.0 in the future. I'm giving you breadcrumbs without revealing too much, but know it's a major initiative and we're getting exciting results.
Your next question comes from the line of Victoria McCulloch with RBC.
On the Subsea EBITDA margin as we look into the second half of the year, can you help us understand how much of the improvement comes from delivery and project phasing versus a structural step-up in higher-quality contracts as a proportion of revenue and EBITDA? How much is execution and phasing versus structural change?
Great question. There's a lot of market momentum and our client relationships are unique, but we focus much more on structural changes because we want these improvements to be long-term. We're not selling fixed assets as a commodity; we're a technology company. We focus on internal changes to our operating model and on moving from Subsea 2.0 to iEPCI 2.0. We continue to benefit from efficiencies in manufacturing, shorter cycle times, and freed-up assets which means less need to build or buy additional assets. Becoming more efficient drives higher returns and creates a sustainable model. Those internal changes are changing who we are and how we operate. Alf can add more color.
To complement Doug's comments, the improvement is gradual. These things are realized as we keep taking on new backlog with iEPCI and 2.0 and as we mature our industrialization processes. It's hard to pinpoint a single-quarter step-up; it's a gradual improvement demonstrated through our backlog as we execute well.
I'll add that it's not only a gradual improvement in the second half; as Alf said, we've already committed to improvement in 2027.
That's helpful color. On the tender pipeline, it's great seeing it grow every quarter. We know there are some sticky projects—ones that are challenging for economics or offtake to reach FID. When you look at the addressable contracts on your $30.5 billion list, how much is still sticky and could be helped by iEPCI?
Some projects have lived on this list longer than anticipated. I think people will be surprised to see momentum on some of those projects. For some, the economics can be solved by iEPCI 2.0, and we'd be proud to help. Of course, projects can be delayed by local issues, reservoir challenges, partnership dynamics, etc., so it's hard to predict exact timing for FID. But I believe the probability that projects on this list will progress over the next 24 months is greater than it's ever been.
Your next question comes from the line of David Anderson with Barclays.
You discussed how orders are shifting in '27 versus '26—shorter brownfield projects this year and larger greenfield projects next year. Does that imply fewer direct awards and more competitive tenders next year? Can you talk about tender dynamics, pricing, and how you are approaching competition, given some competitors have been aggressive on certain projects?
I wouldn't draw the conclusion that there will be fewer direct awards in 2027. We've already announced substantial greenfield direct awards historically and continue to do so. Broadly, 80% of our business is direct awarded to our company and about 20% is competitive tendering. On the competitive side, discipline is key. We have obligations to meet and we know the competitive landscape is rather concentrated. We'll be selective and focus on projects where our differentiation can unlock value. Often our differentiation leads to direct awards because of our unique capabilities. The market will be what it is, but we focus on creating value for clients and for TechnipFMC simultaneously.
If we step back, how are customer conversations going about capital allocation in this volatile environment? Where does offshore fit? Is offshore becoming a bigger part of capital allocation, and is that part of the reason you see a step-up in '27?
I won't speak for customers, but my observations show Subsea becoming a more strategic consideration for clients because of geographic diversification. When clients consider risk and portfolio, geographic diversification is increasingly important, and offshore provides that diversification. Reservoir quality has not been the issue—economics and project certainty were. Clients demand certainty, and historically offshore did not deliver that. TechnipFMC has brought certainty back to Subsea projects, giving clients confidence to move forward and diversify globally. We're also seeing many new entrants into offshore, and frequently they turn to us because we can deliver everything from architecture and FEED through manufacturing, installation, commissioning and long-term life-of-field services under a single contract and single entity.
Your next question comes from the line of Mark Wilson with Jefferies.
Your comments about industrializing iEPCI and iEPCI 2.0 are fascinating regarding the water column and installation. A big variable is whether the market uses flex pipe or welded rigid pipe. Is there an iEPCI 2.0 vision that covers both technologies, or does it require one of these technologies to outweigh the other to deliver that vision?
When we look at iEPCI 2.0, it will address the vast majority of the market's requirements and will not be dependent on one specific type of pipe or installation. It will be agnostic to flexible versus rigid pipe, covering both in a differentiated way. What we have under development is substantial and will be a game changer. I can't share more specifics at this stage, but we're very excited about the potential.
We look forward to it. My follow-up: Q2 is the highest group margin since the demerger. You guided to an unchanged broader EBITDA for the second half, but you have previously said there are levers to pull within EBITDA. With Subsea now over 23% margin, can you speak to the outlook versus projects and backlog?
We continue to improve the quality of our backlog by working off older legacy backlog and replenishing it with higher-quality work. That improves our ability to consistently deliver better projects as we move forward. I also want to emphasize that we are raising guidance. We had a substantial beat this quarter and raised guidance well beyond the beat. We increased total company adjusted EBITDA guidance to $2.19 billion, which is a substantial increase. Alf has also said we expect EBITDA generation to be stronger in the second half than in the first half.
Overall, for both segments we expect EBITDA generation to be stronger in the second half of the year compared with the first half.
Your next question comes from the line of Marc Bianchi with TD Cowen.
On iEPCI 2.0, how long do you think it will take before we start to see this becoming a meaningful part of your inbound and your backlog?
We're still in Concept Select and actively experimenting. A big part of my focus this past quarter was on this work. I'm excited but don't want to give specific timing yet. We're not discussing this if it were in the distant future; progress is being made and we'll provide more specifics in time.
On the order outlook for the remainder of the year, you mentioned smaller projects this year versus greenfield next year. Does that translate into fewer press releases as we track performance over the back half? These smaller things might not qualify as press-release-sized awards, or is that not the right takeaway?
That's a fair point. I wouldn't want people to be concerned about a lack of press releases or announcements. In the first half there wasn't a large number of announcements despite the solid inbound. Many of the projects are smaller but still meaningful for customers and for us. Focus on the $10 billion inbound target rather than the number of press releases.
Your next question comes from the line of Scott Gruber with Citigroup.
Turning to the macro and Asia Pacific: the region has been hit by energy issues and there seemed to be interest in picking up activity. Can you dig into the region from India to Southeast Asia to Australia? What are you seeing in terms of the development pipeline there? Has that taken a step higher with oil prices? And what's the outlook for gas development across the region given power demand growth?
Your intuition is validated. We're seeing activity and behavior from governments and clients in Asia Pac. Governments are looking to secure capacity beyond traditional sources and diversify supply. They are also taking a second look at regional resources to invest in. Examples: Indonesia shows significant activity and tendering for our company, and neighboring countries increasingly want to be part of projects. There are large gas project opportunities in Australia and Woodside is working to progress those projects. Malaysia is looking more at deepwater opportunities beyond its traditional shallow-water developments, and we've partnered with Petronas in the region. Those are highlights and align with increased activity driven by gas demand and a desire for greater control over supply in the region.
Thanks. Turning to Surface Technologies, orders decreased to $220 million in the quarter. Any more color behind that and the outlook for orders in the second half?
For Surface, orders and backlog dynamics are heavily influenced by the Middle East. North America tends to be a book-and-turn business and resolves quarterly. We signed a 10-year contract with ADNOC in late 2021 that we're working through; that contract's execution cadence affects what gets replaced in backlog over time. The backlog dynamics reflect that natural cadence. Activity remains strong in the UAE and we were recently recognized by ADNOC for our role as a local manufacturer and partner. In Saudi Arabia, we continue to be active with manufacturing and servicing for Saudi Aramco, and we anticipate additional orders from Aramco in the second half of the year.
Your next question comes from the line of Caitlin Donohue with Goldman Sachs.
I wanted to touch on the services business within Subsea. What are your expectations for that business over the next couple of years, especially as you're expecting an order step-up into 2027? What growth could we see in Subsea services?
Subsea services is a crown jewel of the company and an important, consistent business. Think of it as an OEM model: the assets we deploy are high-end, using automation, control and robotics. They operate deep in the ocean and require inspection, maintenance and repair. The wellbore environment is dynamic—flow rates and fluid composition change—so intervention is sometimes required. Customers will call us for intervention, often performed from our intervention vessels. Occasionally a rig is required if completions need to be pulled, but we typically support accessing and removing our equipment. From receipt of work and deployment on the seabed, you now have life-of-field services contracts of 20, 25 or 30 years, which are predictable and accretive. The best way to grow services is to grow the installed base on the seabed. Direct awards generally include life-of-field services contracts, so as our installed base grows, services grow. Historically services growth has been roughly in line with project growth because the company itself has been growing rapidly on the project side. In the future there could be a point where project revenue growth slows but services revenue continues due to a larger installed base and aging equipment requiring more activity. We focus a lot on this business and expect it to continue to grow and make a stronger contribution to the company.
That's helpful. My follow-up: regarding the larger greenfield orders coming in 2027 relative to 2026, is this a trend you expect to continue post-2027 through the end of the decade?
Yes. That's absolutely our expectation—post-2027 through the end of the decade.
Your next question comes from the line of Saurabh Pant with Bank of America.
Doug, on gas: more gas projects are showing up in the pre-FID pipeline, including in Asia and the Eastern Med. What does more gas in the mix mean for TechnipFMC? Specifically, what does it mean for your subsea processing opportunity—separation, boosting—would that see higher demand with more gas projects?
Liquids demand has remained quite strong in subsea FIDs, driven in part by activity in South America, but gas opportunities are growing. We see gas activity in Indonesia, Australia, the Eastern Med, and in the Norwegian sector of the North Sea, which remains important for European energy security. We'll also see gas opportunities in northern South America and elsewhere. TechnipFMC is somewhat agnostic between gas and oil. On a per-unit basis, gas developments tend to be more demanding for equipment because of the high velocities and complex flows, so it differentiates suppliers. Gas equipment can be more technically demanding and requires sophisticated solutions. Over the life of a project, oil reservoirs often lead to more services activity, so there's a trade-off; on a per-unit basis gas can require more upfront capital intensity but both types of projects are important. Subsea processing opportunities such as separation and boosting are part of the toolkit and can see demand as these gas developments progress.
Thanks. Regarding industrializing the water column and installation—the operator perspective: what are they trying to solve for when you industrialize these parts? What is their biggest pain point and what would they most want you to deliver, and how would it benefit them?
Quite simply: the relentless pursuit of reduction of cycle time. It gives them certainty, allows them to do more projects faster, and improves project economics through accelerated time to first oil. All of those benefits also accrue to TechnipFMC.
We have reached the end of the question-and-answer session. I will now turn the call back to Matthew Seinsheimer for closing remarks.
This concludes today's conference call. A replay will be available on our website beginning at approximately 3:00 p.m. New York. If you have any further questions, please feel free to reach out to the Investor Relations team. Thank you for joining us. Warren, you may now end the call.
This concludes today's call. Thank you for attending. You may now disconnect.