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TechnipFMC Q1 Earnings Beat Estimates, Revenues Miss, Both Rise Y/Y
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Key Takeaways
FTI Q1 earnings beat estimates, rising to 64 cents from 33 cents per share on strong Subsea performance.
Revenues grew 11.6% to $2.49B but missed estimates due to weaker Service revenue contributions.
Subsea strength lifted margins, while total inbound orders fell 30.3% despite backlog growth.
TechnipFMC plc (FTI - Free Report) reported first-quarter 2026 adjusted earnings of 64 cents per share, which beat the Zacks Consensus Estimate of 57 cents. The bottom line also increased sharply from the year-ago quarter’s reported earnings of 33 cents. The outperformance was driven by strong operational execution, particularly in the Subsea segment, along with improved margins.
Houston, TX-based oil and gas equipment and services company’s quarterly revenues of $2.49 billion missed the Zacks Consensus Estimate of $2.53 billion due to a year-over-year decrease in revenue contributions from the Service revenues, which also missed our consensus estimate by 18.32%. Despite the miss, the top line increased 11.6% compared with the year-ago quarter's reported figure of $2.23 billion, driven by higher revenue contributions from both the Product and Lease revenues, which exceeded our consensus estimate by 21.92% and 7.67%, respectively.
On April 28, FTI’s board of directors declared a quarterly cash dividend of 5 cents per share to its common shareholders of record as of May 19, 2026. The payout, unchanged from the previous quarter, will be made on June 3, 2026.
During the quarter, the company bought back 4.3 million ordinary shares at a cost of $264.8 million. When combined with dividend payments of $19.9 million, total distributions to shareholders amounted to $284.7 million.
TechnipFMC reported total company adjusted EBITDA of $466 million, up 35.5% year over year. Adjusted EBITDA margin expanded 330 basis points to 18.7%. Excluding a foreign exchange gain of $12.8 million, adjusted EBITDA came in at $453.2 million, with a margin of 18.2%.
Total company inbound orders were $2.15 billion, down 30.3% year over year. Additionally, the reported figure missed the Zacks Consensus Estimate by $681 million. Backlog at the end of the quarter was $16.47 billion, up 4.1% from the prior-year period. Moreover, the reported figure missed the Zacks Consensus Estimate by $460 million.
FTI’s Segmental Analysis
Subsea: Revenues from this segment totaled $2.21 billion, up 14.1% from the year-ago quarter’s level of $1.94 billion. The increase was aided by higher integrated Engineering, Procurement, Construction and Installation project activity, particularly in Brazil.
Project revenues grew sequentially across Latin America, Africa and North America, partly offset by lower activity in the Asia Pacific and the North Sea. However, the reported figure missed the Zacks Consensus Estimate by 18.04%
Subsea adjusted EBITDA was $440.7 million, up 31.6% from the year-ago quarter’s $334.9 million. However, the reported figure beat the Zacks Consensus Estimate by 2.49%. Adjusted EBITDA margin expanded to 20% from 17.3% a year earlier. The segment’s inbound orders were $1.9 billion, down 31.7% year over year, while backlog rose 5.7% to $15.8 billion.
Surface Technologies: Revenues from this unit totaled $284.3 million, down 4.4% year over year from $297.4 million. The decline was mainly due to the scheduled timing of project-related activity in the Middle East, with only a minimal portion attributable to the regional conflict. Moreover, the reported figure missed the Zacks Consensus Estimate by 3.09%
Surface Technologies' adjusted EBITDA was $49.5 million, up 6.2% from the year-ago quarter’s $46.6 million. Moreover, the reported figure beat the Zacks Consensus Estimate by 2.87%
Adjusted EBITDA margin improved to 17.4% from 15.7%. Inbound orders were $248.7 million, down 18.1% year over year, while backlog declined 23.3% to $667.6 million.
FTI’s Financials
TechnipFMC reported $2.14 billion in costs and expenses, up 8.5% from the year-ago quarter’s $1.97 billion. FTI generated $332.5 million in cash flow from operating activities in the quarter. Capital expenditures totaled $55.6 million, resulting in free cash flow of $276.9 million.
As of March 31, 2026, TechnipFMC had cash and cash equivalents of $960.8 million and long-term debt of $384 million, with a debt-to-capitalization of 10.2%.
FTI’s 2026 Guidance
TechnipFMC reaffirmed its full-year 2026 guidance, originally issued on Feb. 19, 2026. For the Subsea segment, the company expects revenues in the range of $9.2-$9.6 billion, with an adjusted EBITDA margin of 21-22%. For Surface Technologies, revenues are projected in the band of $1.15-$1.3 billion, with an adjusted EBITDA margin of 16.5-18%.
The company also expects net corporate expense of $115-$125 million, net interest expense of $10-$20 million, an effective tax rate of 27-31%, capital expenditures of approximately $340 million and free cash flow of $1.3-$1.45 billion for 2026.
Management expressed confidence in achieving $10 billion of Subsea orders in 2026. This Zacks Rank #3 (Hold) company highlighted that its Subsea opportunities list now represents approximately $30 billion of potential awards over the next 24 months, marking the seventh straight quarterly increase.
While we have discussed FTI’s first-quarter results in detail, let us take a look at three other key reports in this space.
Halliburton Company (HAL - Free Report) , a Houston, TX-based oil and gas equipment and services provider, posted first-quarter 2026 adjusted net income per share of 55 cents, beating the Zacks Consensus Estimate of 49 cents. The outperformance primarily reflects successful cost reduction initiatives. However, the bottom line fell from the year-ago adjusted profit of 60 cents.
Halliburton reported first-quarter capital expenditure of $192 million. As of March 31, 2026, this Houston, TX-based oil and gas equipment and services company had approximately $2 billion in cash/cash equivalents and $7.1 billion in long-term debt, representing a debt-to-capitalization ratio of 39.6.
Kinder Morgan Inc. (KMI - Free Report) , a Houston, TX-based oil and gas storage and transportation company, posted first-quarter 2026 adjusted earnings per share of 48 cents, which beat the Zacks Consensus Estimate of 38 cents. The bottom line increased year over year from 34 cents. The strong quarterly results can be primarily attributed to contributions from the Natural Gas Pipelines business segment.
As of March 31, 2026, KMI reported $72 million in cash and cash equivalents. At the quarter's end, its long-term debt amounted to $29.72 billion. KMI’s project backlog was reported at $10.1 billion by the end of the first quarter. The midstream energy major added that natural gas projects comprise approximately 92% of its project backlog, with nearly 60% dedicated to supporting local distribution companies and power generation.
Range Resources Corporation (RRC - Free Report) , a Fort Worth, TX-based oil and gas exploration and production company, posted first-quarter 2026 adjusted earnings of $1.52 per share, which beat the Zacks Consensus Estimate of $1.33. The bottom line also improved from the prior-year level of 96 cents. Strong quarterly results can be attributed to higher gas-equivalent production and increased natural gas price realization.
Drilling and completion expenditure totaled $130 million. An additional $5 million was spent on acreage and $4 million on infrastructure and other investments. At the end of the first quarter, Range Resources reported a total debt of $819.3 million, net of deferred financing costs.
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TechnipFMC Q1 Earnings Beat Estimates, Revenues Miss, Both Rise Y/Y
Key Takeaways
TechnipFMC plc (FTI - Free Report) reported first-quarter 2026 adjusted earnings of 64 cents per share, which beat the Zacks Consensus Estimate of 57 cents. The bottom line also increased sharply from the year-ago quarter’s reported earnings of 33 cents. The outperformance was driven by strong operational execution, particularly in the Subsea segment, along with improved margins.
Houston, TX-based oil and gas equipment and services company’s quarterly revenues of $2.49 billion missed the Zacks Consensus Estimate of $2.53 billion due to a year-over-year decrease in revenue contributions from the Service revenues, which also missed our consensus estimate by 18.32%. Despite the miss, the top line increased 11.6% compared with the year-ago quarter's reported figure of $2.23 billion, driven by higher revenue contributions from both the Product and Lease revenues, which exceeded our consensus estimate by 21.92% and 7.67%, respectively.
TechnipFMC plc Price, Consensus and EPS Surprise
TechnipFMC plc price-consensus-eps-surprise-chart | TechnipFMC plc Quote
On April 28, FTI’s board of directors declared a quarterly cash dividend of 5 cents per share to its common shareholders of record as of May 19, 2026. The payout, unchanged from the previous quarter, will be made on June 3, 2026.
During the quarter, the company bought back 4.3 million ordinary shares at a cost of $264.8 million. When combined with dividend payments of $19.9 million, total distributions to shareholders amounted to $284.7 million.
TechnipFMC reported total company adjusted EBITDA of $466 million, up 35.5% year over year. Adjusted EBITDA margin expanded 330 basis points to 18.7%. Excluding a foreign exchange gain of $12.8 million, adjusted EBITDA came in at $453.2 million, with a margin of 18.2%.
Total company inbound orders were $2.15 billion, down 30.3% year over year. Additionally, the reported figure missed the Zacks Consensus Estimate by $681 million. Backlog at the end of the quarter was $16.47 billion, up 4.1% from the prior-year period. Moreover, the reported figure missed the Zacks Consensus Estimate by $460 million.
FTI’s Segmental Analysis
Subsea: Revenues from this segment totaled $2.21 billion, up 14.1% from the year-ago quarter’s level of $1.94 billion. The increase was aided by higher integrated Engineering, Procurement, Construction and Installation project activity, particularly in Brazil.
Project revenues grew sequentially across Latin America, Africa and North America, partly offset by lower activity in the Asia Pacific and the North Sea. However, the reported figure missed the Zacks Consensus Estimate by 18.04%
Subsea adjusted EBITDA was $440.7 million, up 31.6% from the year-ago quarter’s $334.9 million. However, the reported figure beat the Zacks Consensus Estimate by 2.49%. Adjusted EBITDA margin expanded to 20% from 17.3% a year earlier. The segment’s inbound orders were $1.9 billion, down 31.7% year over year, while backlog rose 5.7% to $15.8 billion.
Surface Technologies: Revenues from this unit totaled $284.3 million, down 4.4% year over year from $297.4 million. The decline was mainly due to the scheduled timing of project-related activity in the Middle East, with only a minimal portion attributable to the regional conflict. Moreover, the reported figure missed the Zacks Consensus Estimate by 3.09%
Surface Technologies' adjusted EBITDA was $49.5 million, up 6.2% from the year-ago quarter’s $46.6 million. Moreover, the reported figure beat the Zacks Consensus Estimate by 2.87%
Adjusted EBITDA margin improved to 17.4% from 15.7%. Inbound orders were $248.7 million, down 18.1% year over year, while backlog declined 23.3% to $667.6 million.
FTI’s Financials
TechnipFMC reported $2.14 billion in costs and expenses, up 8.5% from the year-ago quarter’s $1.97 billion. FTI generated $332.5 million in cash flow from operating activities in the quarter. Capital expenditures totaled $55.6 million, resulting in free cash flow of $276.9 million.
As of March 31, 2026, TechnipFMC had cash and cash equivalents of $960.8 million and long-term debt of $384 million, with a debt-to-capitalization of 10.2%.
FTI’s 2026 Guidance
TechnipFMC reaffirmed its full-year 2026 guidance, originally issued on Feb. 19, 2026. For the Subsea segment, the company expects revenues in the range of $9.2-$9.6 billion, with an adjusted EBITDA margin of 21-22%. For Surface Technologies, revenues are projected in the band of $1.15-$1.3 billion, with an adjusted EBITDA margin of 16.5-18%.
The company also expects net corporate expense of $115-$125 million, net interest expense of $10-$20 million, an effective tax rate of 27-31%, capital expenditures of approximately $340 million and free cash flow of $1.3-$1.45 billion for 2026.
Management expressed confidence in achieving $10 billion of Subsea orders in 2026. This Zacks Rank #3 (Hold) company highlighted that its Subsea opportunities list now represents approximately $30 billion of potential awards over the next 24 months, marking the seventh straight quarterly increase.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Important Earnings at a Glance
While we have discussed FTI’s first-quarter results in detail, let us take a look at three other key reports in this space.
Halliburton Company (HAL - Free Report) , a Houston, TX-based oil and gas equipment and services provider, posted first-quarter 2026 adjusted net income per share of 55 cents, beating the Zacks Consensus Estimate of 49 cents. The outperformance primarily reflects successful cost reduction initiatives. However, the bottom line fell from the year-ago adjusted profit of 60 cents.
Halliburton reported first-quarter capital expenditure of $192 million. As of March 31, 2026, this Houston, TX-based oil and gas equipment and services company had approximately $2 billion in cash/cash equivalents and $7.1 billion in long-term debt, representing a debt-to-capitalization ratio of 39.6.
Kinder Morgan Inc. (KMI - Free Report) , a Houston, TX-based oil and gas storage and transportation company, posted first-quarter 2026 adjusted earnings per share of 48 cents, which beat the Zacks Consensus Estimate of 38 cents. The bottom line increased year over year from 34 cents. The strong quarterly results can be primarily attributed to contributions from the Natural Gas Pipelines business segment.
As of March 31, 2026, KMI reported $72 million in cash and cash equivalents. At the quarter's end, its long-term debt amounted to $29.72 billion. KMI’s project backlog was reported at $10.1 billion by the end of the first quarter. The midstream energy major added that natural gas projects comprise approximately 92% of its project backlog, with nearly 60% dedicated to supporting local distribution companies and power generation.
Range Resources Corporation (RRC - Free Report) , a Fort Worth, TX-based oil and gas exploration and production company, posted first-quarter 2026 adjusted earnings of $1.52 per share, which beat the Zacks Consensus Estimate of $1.33. The bottom line also improved from the prior-year level of 96 cents. Strong quarterly results can be attributed to higher gas-equivalent production and increased natural gas price realization.
Drilling and completion expenditure totaled $130 million. An additional $5 million was spent on acreage and $4 million on infrastructure and other investments. At the end of the first quarter, Range Resources reported a total debt of $819.3 million, net of deferred financing costs.