01—Abstract
Summary
Summary of the 8-K filed February 27, 2025. Cited figures are marked; the original filing is the authoritative source.
TechnipFMC reported fourth-quarter 2024 revenue of $2,367.3 milliona, up 13.9% year over year, with GAAP diluted EPS of $0.52 and adjusted diluted EPS of $0.54.
Adjusted EBITDA was $351.0 millionb (14.8% margin), up 60.5% year over year but down 9.1% sequentially. Subsea drove results, with inbound orders of $2.7 billion in the quarter and a Subsea book-to-bill of 1.3x. Total company backlog ended the year at $14.4 billion, up 8.7% year over year.
Full-year 2024 orders were $11.6 billionc, with Subsea at $10.4 billion, and management expects Subsea inbound to exceed $10 billion in 2025. Cash generation was strong. Full-year free cash flow reached $679 million, up about 45%, and the company ended the year with net cash of $272.5 million, compared with net debt a year earlier.
Shareholder distributions were $486 milliond in 2024. Management raised its 2025 distribution target to at least 70% of free cash flow, which implies distributions growing at least 30% in 2025. Moody's also upgraded the company to investment grade (Baa3) in January 2025.
The 2025 outlook was modestly raised for Subsea, with revenue guidance of $8.4-8.8 billion and adjusted EBITDA margin of 19-20%. Surface Technologies guidance is $1.2-1.35 billion in revenue at a 15-16% margin.
Results were also helped by a $54 million non-cash tax benefit from releasing valuation allowances, which is excluded from adjusted figures. Surface Technologies revenue and orders were weaker in the quarter, with orders down 30% sequentially, so the Subsea segment remains the main driver of the investment case.
02—Key points
Key Highlights
- Q4 2024 revenue of $2,367.3M rose 13.9% year over year; adjusted EBITDA of $351.0M (14.8% margin) rose 60.5%, though it fell 9.1% sequentially.
- Subsea Q4 inbound orders of $2.7B (book-to-bill 1.3x) and full-year Subsea orders of $10.4B; management expects over $10B of Subsea inbound in 2025.
- Total backlog of $14.4B, up 8.7% year over year, with $5.5B of Subsea backlog scheduled for 2025.
- Full-year 2024 free cash flow of $679M (up ~45%) and net cash of $272.5M at year-end, versus net debt a year earlier.
- 2025 shareholder distribution target raised to at least 70% of free cash flow, implying at least 30% growth in distributions.
- Subsea 2025 guidance raised: revenue of $8.4-8.8B (from $8.3-8.7B) and adjusted EBITDA margin of 19-20% (from 18.5-20%).
- Surface Technologies Q4 orders fell 30% sequentially to $225M, and its backlog declined to $858M, a key watch item.
03—Questions
Frequently Asked Questions
Did TechnipFMC beat earnings expectations and grow in Q4 2024?
The release does not include consensus estimates, so it cannot be judged against expectations. Year over year, Q4 revenue grew 13.9%, adjusted EPS rose from $0.14 to $0.54, and adjusted EBITDA rose 60.5%. Sequentially, revenue was roughly flat and adjusted EBITDA fell 9.1%.
Is the $54 million tax benefit part of the underlying earnings?
No. The company treats the $54 million non-cash benefit from releasing deferred tax valuation allowances as a discrete item. Adjusted net income includes it, but excluding it, net income would have been about $219 million. Investors should treat it as a one-time boost rather than recurring earnings.
How much cash is the company returning to shareholders, and what is the 2025 target?
The company returned $486 million in 2024, nearly double the prior year. For 2025 it targets distributions of at least 70% of free cash flow, which management says implies at least 30% year-over-year growth in distributions.
What drives the outlook for Subsea?
Subsea orders are supported by iEPCI, Subsea 2.0 and Subsea Services, which management says make up more than 80% of Subsea inbound. Recent awards include the TotalEnergies GranMorgu project offshore Suriname and Shell's Bonga North project in Nigeria. Management also cites a growing list of named projects extending beyond the planning horizon.
What are the main risks or weak spots in the report?
Surface Technologies showed weakness, with Q4 revenue down 10.6% year over year and orders down 30% sequentially. Backlog fell 19.6% year over year and Subsea margins declined sequentially. Foreign exchange and restructuring charges also affected results, and the forward-looking statements flag oil and gas price volatility, geopolitical events and project execution risks.
04—Continue