TechnipFMC Raises 2026 Subsea Revenue Outlook to $9.8 Billion
Key Facts
On October 29, TechnipFMC raised its 2026 Subsea revenue outlook to a range of $9.6–9.8 billion, from $9.2–9.6 billion in its previous guidance, according to its third-quarter results statement. The update also included a higher free cash flow outlook of $1.45–1.55 billion, from $1.3–1.45 billion, and a lower effective tax rate range of 25–27%, from 27–31%. The revision came as the segment improved its performance during the quarter, with revenue of $2.6 billion, up 4.5% from the second quarter. The company said activity growth included projects and services, while results reflected improvements in operating profit and margins. At the same time, company data showed total quarterly and annual declines in orders received, placing the upgrade in a context of improved current results alongside mixed demand indicators.
TechnipFMC’s total revenue was $2,895.8 million in the third quarter, up 4.8% from the previous quarter and 9.4% from the corresponding period in 2025. Net income attributable to the company reached $418.4 million, up 15.4% quarter over quarter and 35.1% year over year, while diluted earnings per share were $1.05, up 16.7% from the second quarter and 40% from the third quarter of 2025. Subsea revenue rose to $2,600.0 million from $2,486.9 million in the second quarter and $2,319.2 million a year earlier. The segment’s adjusted EBITDA margin increased to 23.5% from 23.2% in the previous quarter and 21.8% a year earlier. The company said the margin rose 30 basis points quarter over quarter, while operating profit margin increased to 20.1% from 19.6% in the second quarter and 17.3% a year earlier.
Subsea operating profit was about $522.6 million, up 7.4% from the second quarter, with the company attributing the improvement to strong execution and higher project and services activity. It added that the segment’s revenue benefited from increased project activity, particularly iEPCI projects in Indonesia and Brazil, as well as growth in services activity. This was partly offset by lower project activity in Norway, according to the statement. Third-quarter results reflect slower sequential revenue growth than the 12.6% increase the segment recorded in the second quarter, when revenue reached $2,486.9 million. Adjusted EBITDA margin then stood at 23.2%, after rising 320 basis points from the first quarter. In the third quarter, the margin continued to improve to 23.5%, while operating profit margin rose to 20.1%.
On liquidity, the company generated free cash flow of $469.7 million in the third quarter and ended the period with net cash of $645.3 million on September 30, 2026. Chief Executive Officer Doug Pferdehirt described the results as reflecting consistent execution and strengthening customer confidence in the company’s capabilities. He said the company generated free cash flow of $470 million, the figure he cited in his statement, rounded from the quarterly result. Management also raised its 2026 adjusted EBITDA outlook for the company to about $2.22 billion, excluding the impact of foreign exchange differences, and said the other annual guidance items were unchanged. The figures follow annual revenue of $9.9 billion in 2025, adjusted EBITDA of $1.8 billion and free cash flow of $1.4 billion.
Subsea orders received were $2,051.5 million in the third quarter, while total orders received by the company were $2,319.5 million. Total orders received fell 14.9% from the second quarter, when they were $2,726.6 million, and declined 12.4% from $2,648.1 million in the third quarter of 2025. By contrast, the Subsea opportunity list stood at about $32 billion, based on the midpoint of project values, marking its ninth consecutive quarterly increase. Pferdehirt said continued growth in deepwater activity and improving project economics support the outlook, linking this to the expanding opportunity list. The company expects Subsea orders received to total at least $14.5 billion over the next five quarters, including its 2027 outlook. This forecast comes despite the decline in total orders in the third quarter and is based on the opportunity list the company announced.
Management expects seasonal effects on Subsea results in the fourth quarter of 2026, with revenue declining by a mid-to-high single-digit percentage compared with the third quarter and adjusted EBITDA margin falling to about 21%. The initial 2027 guidance covers only Subsea revenue of $10.0–10.4 billion and an adjusted EBITDA margin of 22.5–24.0%. Management said the rest of its 2027 financial guidance would be issued with the announcement of fourth-quarter 2026 results. Using the midpoints of the initial guidance ranges, the company expects adjusted EBITDA for the segment to grow by more than 10% year over year. Pferdehirt said incremental Subsea margin is approaching 50% in 2027, linking this to continued strength in operational execution. The stock fell 3.22% to $69.10 in premarket trading on October 29, according to Investing.com, citing Reuters, despite the company beating analysts’ expectations for earnings and revenue.