10-KPeriod: FY2024

TechnipFMC plc Annual Report, Year Ended Dec 31, 2024

Filed February 27, 2025For Securities:FTI

Summary

TechnipFMC plc (FTI) reported a robust financial performance for the fiscal year 2024, demonstrating significant growth and improved profitability. The company experienced a substantial increase in revenue, driven primarily by its Subsea segment, which saw strong demand for integrated projects and services. The Surface Technologies segment, while facing some regional headwinds, benefited from international market strength and strategic divestitures. Key financial highlights include a 16.1% increase in total revenue to $9.1 billion, driven by strong inbound orders that grew 5% year-over-year, leading to a backlog of $14.4 billion. The company also significantly improved its cash flow from operations by 39% to $961 million, with free cash flow increasing by 45% to $679.4 million. TechnipFMC returned approximately $486 million to shareholders through dividends and share repurchases, underscoring a commitment to capital return. The company also achieved investment-grade debt ratings, reflecting a strengthened financial profile. Looking ahead, TechnipFMC anticipates continued global economic growth and sustained demand in the offshore and Middle East markets, positioning it for further value creation.

Financial Statements
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Key Highlights

  • 1Total revenue increased by 16.1% to $9.1 billion in 2024 compared to 2023.
  • 2Inbound orders improved by 5% year-over-year to $11.6 billion, driving backlog to $14.4 billion.
  • 3Cash flow from operations grew 39% to $961 million, and free cash flow increased 45% to $679.4 million.
  • 4Shareholder distributions nearly doubled year-over-year, with $486 million returned through dividends and share repurchases.
  • 5The company achieved investment-grade debt ratings from S&P and Fitch.
  • 6Subsea segment revenue increased by 21.5% to $7.8 billion, with operating profit nearly doubling to $953.1 million.
  • 7Surface Technologies segment revenue decreased by 9.1% to $1.3 billion, but operating profit significantly improved due to a gain on sale and better international performance.
  • 8TechnipFMC is actively pursuing new energy initiatives, including carbon transportation and storage, offshore floating renewables, and hydrogen solutions.

Frequently Asked Questions

TechnipFMC's revenue growth in 2024 was primarily driven by its Subsea segment, which experienced a 21.5% increase in revenue. This growth was fueled by a higher volume of iEPCI™ projects, installation services, flexible pipe supply, and a growing installed base for services, particularly in regions like Angola, the United States, Guyana, and Australia.

The company demonstrated strong cash flow generation in 2024. Cash flow from operations increased by 39% to $961 million, and free cash flow saw a substantial rise of 45% to $679.4 million. This improved performance reflects operational efficiencies and effective working capital management.

TechnipFMC maintains a positive outlook for 2025, anticipating continued global economic growth with some regional disparities. The company expects sustained demand in the oil and gas sector, particularly in offshore and Middle East markets, driven by energy security considerations and the attractiveness of deepwater resources. They also see an increasing role for technology innovation in both conventional and new energy sectors.

TechnipFMC is actively expanding into New Energy, focusing on Greenhouse Gas (GHG) removal, offshore floating renewables, and hydrogen solutions. This strategic diversification leverages their core competencies in project integration and technology to address the evolving energy landscape and capitalize on growth opportunities in sustainability-focused markets.