01—Abstract
Summary
Summary of the 8-K filed February 19, 2026. Cited figures are marked; the original filing is the authoritative source.
TechnipFMC reported fourth-quarter 2025 revenue of $2,517.0 milliona, down 4.9% sequentially but up 6.3% year over year, with diluted EPS of $0.59 on a GAAP basis and $0.70 on an adjusted basis (excluding $43.8 million of after-tax charges and a $79.8 million non-cash tax benefit from valuation allowance releases).
Adjusted EBITDA was $440.5 millionb, a 17.5% margin, down sequentially from 19.6% but up 270 bps year over year. Subsea drove the quarter's softness, with revenue of $2,194.2 million and a sequential margin decline to 18.9% adjusted EBITDA margin, partly reflecting seasonally lower vessel activity, higher maintenance, and $50.2 million of higher restructuring and impairment charges. For the full year, revenue grew 9.4% to $9,932.6 million, adjusted EBITDA rose 35.0% to $1,824.1 million (18.4% margin), and adjusted diluted EPS reached $2.45 versus $1.82 in 2024.
Free cash flow was $1.45 billionc, and shareholder distributions totaled $1.0 billion, more than double 2024 levels. Orders were $11.2 billion for the year, down 3.6%, but ending backlog rose 15.3% to $16.6 billion, with Subsea backlog at $15.9 billion. Management raised its 2026 Subsea revenue guidance to $9.2-9.6 billion and its Subsea adjusted EBITDA margin guidance to 21-22%.
The quarter's key positives for investors are the strong full-year cash generation, the rising Subsea opportunity list (approximately $29 billiond, sixth consecutive quarterly increase), and the shift toward higher-quality direct awards, iEPCI, and Subsea Services. The main watch items are the 4.9% sequential revenue decline, the sharp sequential Subsea margin compression, and Q4 inbound of $2.6 billion, which was 11.5% below the prior-year quarter and implies management expects roughly $10 billion of Subsea inbound in 2026 to sustain backlog growth.
02—Key points
Key Highlights
- Q4 2025 revenue of $2.52 billion, down 4.9% sequentially but up 6.3% year over year; GAAP diluted EPS of $0.59 and adjusted diluted EPS of $0.70
- Full-year 2025 adjusted EBITDA rose 35% to $1.82 billion (18.4% margin), and adjusted diluted EPS rose 34.6% to $2.45
- Q4 Subsea adjusted EBITDA margin fell 290 bps sequentially to 18.9%, with $50.2 million of higher restructuring and impairment charges
- Full-year free cash flow of $1.45 billion; shareholder distributions of $1.0 billion, more than double 2024
- Ending backlog grew 15.3% year over year to $16.6 billion; full-year inbound orders of $11.2 billion were down 3.6%
- 2026 Subsea revenue guidance raised to $9.2-9.6 billion and Subsea adjusted EBITDA margin guidance raised to 21-22%
- Q4 included a non-cash $79.8 million tax benefit from valuation allowance releases, which flatters adjusted net income and should be treated as non-recurring
03—Questions
Frequently Asked Questions
Why is GAAP EPS ($0.59) lower than adjusted EPS ($0.70) in Q4?
Adjusted EPS excludes $43.8 million of after-tax charges and credits, mainly $52.1 million of restructuring, impairment and other charges, which reduced reported earnings by $0.11 per share. The adjusted figure also includes a non-cash $79.8 million tax benefit from valuation allowance releases, which is a one-time item that boosts adjusted results.
Did the company meet its full-year profitability trajectory?
Yes, on a year-over-year basis. Full-year adjusted EBITDA margin expanded 350 bps to 18.4%, and adjusted EPS grew 34.6% to $2.45. Q4 margins were lower than Q3, however, reflecting seasonal vessel activity, higher maintenance, and restructuring costs.
Is the company's backlog sufficient to support future revenue?
Total backlog of $16.6 billion is about 1.7 times 2025 revenue. Roughly $6.0 billion is scheduled for 2026, so backlog covers a large portion of expected Subsea revenue in the $9.2-9.6 billion guidance range. Management expects about $10 billion of Subsea inbound in 2026 and anticipates further backlog growth.
What are the main risks highlighted for investors?
Key risks include the sequential decline in Q4 revenue and Subsea margins, inbound orders that fell year over year in both Q4 and the full year, and foreign exchange losses of $11.7 million pre-tax for 2025. The filing's forward-looking statements also cite oil and gas price volatility, contract execution risk on fixed-price contracts, and tariff and trade policy changes.
How strong is the balance sheet and cash position?
Net cash improved to $601.9 million at year-end from $272.5 million a year earlier. Cash and equivalents were $1.03 billion, and total debt fell to about $430 million. Free cash flow of $1.45 billion for 2025 comfortably funded $1.0 billion of shareholder distributions.
04—Continue