Technip Energies Posts Record Adjusted Quarterly Profit of €172.4 Million
Key Facts
Technip Energies reported adjusted recurring earnings before interest, taxes, depreciation and amortization of €172.4 million in the third quarter of 2026, a quarterly record, compared with €159.0 million in the same period of 2025. Adjusted underlying profit exceeded the analyst consensus of €148 million, according to Reuters, while adjusted revenue was €1.94 billion, below expectations of €2.08 billion. The adjusted recurring earnings margin was 8.9%, compared with 9.0% a year earlier. Chief Executive Arno Bétto said profitability had recovered from its second-quarter low, and that the company posted its highest quarterly profit and reaffirmed its guidance for the year. The performance reflects a quarter-on-quarter operational improvement, although revenue did not meet market estimates.
The clearest recovery was in the project delivery unit, where underlying profit rose to €100.9 million in the third quarter from €23.8 million in the second quarter, and its margin improved to 7.0% from 1.7%. The company said activity growth included liquefied natural gas and decarbonization projects in the United States and Europe. But the quarterly improvement did not erase the pressures reflected in nine-month results: the project delivery unit’s adjusted recurring earnings margin fell to 5.2% from 8.0% a year earlier. The company attributed the annual margin decline to the ongoing conflict in the Middle East and related additional costs for logistics, safety and business continuity. It also said operational performance returned to normal in the third quarter, while alternative logistics solutions partly mitigated the impact of the Strait of Hormuz crisis.
Technip Energies said its adjusted backlog stood at €24.5 billion on September 30, up 54% compared with the end of 2025, describing it as close to a record level. The backlog is equivalent to 3.4 times adjusted revenue for fiscal 2025, providing the company with work spread over several years. Awards during the quarter included a major contract from HPCL to upgrade the Mumbai refinery in India, and an engineering services contract for an ADNOC offshore project in the UAE. They also included contracts from Petkim for a proposed petrochemical complex in Turkey. The company’s estimated schedule for executing the backlog allocates €2,108.2 million to the final three months of 2026, €7,380.0 million to 2027 and €15,018.6 million to 2028 and beyond.
For the first nine months, adjusted revenue rose to €5,596.7 million from €5,417.1 million in the same period of 2025, but adjusted recurring earnings fell to €384.7 million from €478.0 million. Net profit attributable to the group was €184.8 million, compared with €281.9 million a year earlier. The company recorded free cash flow of €1,058.8 million; excluding the €723.3 million change in working capital and provisions, cash flow was €335.5 million. These figures highlight the contrast between revenue growth and declining annual profit under pressure from disruption-related costs. In July, the company cut its project delivery unit profitability outlook after logistics and operating costs related to the Middle East weighed on its earnings, according to Reuters.
Chief Financial Officer Bruno Viber said operations in the region had stabilized and a relatively large share of clients had agreed to cover additional costs arising from the disruption. He added that negotiations to recover related costs were progressing, but some items would remain under negotiation until 2027. The company reaffirmed its fiscal 2026 guidance and said it was on track to achieve annual earnings before interest, taxes, depreciation and amortization of more than €800 million by 2028. In the near term, the company’s schedule includes investor conferences on November 10, 11, 16 and 30, followed by December 3 and 8, 2026. TE.PA shares closed at €33.08 on October 30, according to EL7 data.