Analysis FTI
TechnipFMC expects $14.5 billion in orders. Its backlog just shrank.
TechnipFMC raised its cash-flow forecast as subsea profit improved. Its shrinking backlog puts the focus on $14.5 billion of orders expected over five quarters.
Ticker Byline
TechnipFMC plc
TechnipFMC supplies equipment and integrated engineering, manufacturing, installation and services for subsea and surface energy projects.
- Ticker
- FTI
- Exchange
- XNYS
- SEC CIK
- 0001681459
Equipment and services for energy projects
TechnipFMC plc trades on the New York Stock Exchange under FTI. Its Subsea business designs, makes, installs and services equipment used in offshore oil and gas production. Surface Technologies supplies equipment and services for wells and production systems closer to the surface. Integrated subsea contracts combine engineering, equipment and installation work.
Profit growth and order intake
Comparable third quarters ended September 30. Dollar amounts are millions. Group net income is attributable to TechnipFMC shareholders. The table separates group results from Subsea results.
| Metric | Q3 2025 | Q3 2026 |
|---|---|---|
| Group revenue | $2,647.3 | $2,895.8 |
| Group net income | $309.7 | $418.4 |
| Subsea revenue | $2,319.2 | $2,600.0 |
| Subsea operating profit | $401.3 | $522.6 |
| Subsea new orders | $2,381.5 | $2,051.5 |
| Subsea ending backlog | $16,038.2 | $15,487.0 |
Subsea operating margin rose to 20.1% from 17.3%. New orders were below the quarter's revenue, and backlog fell from $15.83 billion in June. The company expects at least $14.5 billion of subsea orders over the five quarters ending December 2027. Its $32 billion list of potential projects describes opportunities being pursued.
The forecast through time
Full-year 2026 Subsea revenue expectations, in billions of dollars. The first forecast was issued with October 2025 results. July 2026 explicitly reaffirmed February's outlook; October 2026 raised it.
| Forecast date | Revenue range |
|---|---|
| October 2025 | $9.1 to $9.5 |
| July 2026 reaffirmation | $9.2 to $9.6 |
| October 2026 | $9.6 to $9.8 |
The current 2026 adjusted EBITDA margin target for Subsea remains 21% to 22%. This measure is earnings before interest, taxes and asset depreciation, with selected costs and gains removed, divided by revenue.
The initial 2027 Subsea outlook is $10.0 billion to $10.4 billion of revenue and a 22.5% to 24% adjusted EBITDA margin. Other company-wide 2027 targets are due with fourth-quarter results.
Cash generation and the balance sheet
Company-wide operating cash flow for the first nine months was $1.41 billion, up from $1.31 billion a year earlier. Capital spending fell to $176.7 million from $222.7 million. Together, those changes raised free cash flow, operating cash less capital spending, to $1.23 billion from $1.09 billion.
The 2026 free-cash-flow forecast increased to $1.45 billion to $1.55 billion from $1.30 billion to $1.45 billion. Expected annual capital spending remains about $340 million. The effective tax-rate forecast fell to 25% to 27% from 27% to 31%.
September cash was $1.05 billion, compared with $1.03 billion at December 31. Debt on the balance sheet was $121.5 million due within a year and $282.5 million longer term. Over nine months, share repurchases used $1.00 billion and dividends used $59.2 million.
What the next results can establish
New orders will show whether the expected offshore projects replenish backlog as existing work is delivered. Project-cost revisions also affect earnings: Q3 included $92.9 million of unfavorable updates and $101.4 million of favorable updates. The net effect was positive, but the opposing movements show why individual project costs matter alongside the total margin.
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