Summary
TechnipFMC plc (FTI) reported a strong year in 2023, with significant revenue growth driven by increased activity in its Subsea and Surface Technologies segments. The company's Subsea segment saw a substantial increase in inbound orders and backlog, buoyed by record integrated project awards and a higher adoption of its Subsea 2.0 product platform. The Surface Technologies segment also experienced growth, particularly supported by international markets. The company demonstrated improved financial performance, highlighted by a significant increase in cash flow from operations and free cash flow, which more than doubled year-over-year. TechnipFMC also initiated a quarterly cash dividend and announced a commitment to return over 60% of annual free cash flow to shareholders through 2025, signaling a focus on shareholder returns. Looking ahead, TechnipFMC anticipates continued market strength, with a strategic focus on offshore and Middle East markets, new technologies, and expanding subsea services. The company is also actively progressing its New Energy initiatives, with over $1 billion in inbound orders for these areas, anticipating significant contributions from carbon transportation and storage, offshore floating renewables, and hydrogen solutions.
Financial Highlights
55 data points| Revenue | $7.82B |
| Cost of Revenue | $6.54B |
| Gross Profit | $1.28B |
| R&D Expenses | $69.00M |
| SG&A Expenses | $675.90M |
| Operating Expenses | $7.32B |
| Operating Income | $658.20M |
| Interest Expense | $122.20M |
| Net Income | $56.20M |
| EPS (Basic) | $0.13 |
| EPS (Diluted) | $0.12 |
| Shares Outstanding (Basic) | 438.60M |
| Shares Outstanding (Diluted) | 452.30M |
Key Highlights
- 1Revenue increased by 16.8% to $7.8 billion in 2023, driven by growth in both Subsea and Surface Technologies segments.
- 2Inbound orders improved significantly to $11.0 billion, a 36% increase year-over-year, with Subsea orders up 45%.
- 3Cash flow from operations increased by 96.8% to $693.0 million, and free cash flow more than doubled to $467.8 million.
- 4The company initiated a quarterly cash dividend and authorized an additional $400 million in share repurchases, increasing the total authorization to $800 million.
- 5Subsea backlog grew to over $12.2 billion, representing a 50% increase, indicating strong future revenue potential.
- 6TechnipFMC is actively investing in and progressing its New Energy business, with over $1 billion in inbound orders for these initiatives.
- 7The company resolved a significant legal matter with French authorities, with TechnipFMC responsible for a €179.45 million fine to be paid in installments.