TechnipFMC plc FTI reported third-quarter 2024 adjusted earnings of 64 cents per share, which beat the Zacks Consensus Estimate of 39 cents. Moreover, the bottom line increased from the year-ago quarter’s reported profit of 21 cents. This improvement was due to better-than-expected performances from the Subsea and Surface Technologies segments.
Revenues of $2.3 billion marginally beat the Zacks Consensus Estimate by 0.5%. The top line also increased from the year-ago quarter’s reported figure of $2.1 billion.
Adjusted EBITDA for the Subsea unit totaled $371 million, which beat the Zacks Consensus Estimate of $360 million. The same for the Surface Technologies unit came in at $49.1 million, which also beat the consensus mark of $46.11 million.
Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.
FTI’s third-quarter inbound orders increased 29.8% from the year-ago period’s level to $2.8 billion. The company’s backlog rose at the same time. TechnipFMC’s order backlog totaled $14.7 billion as of September-end, up 11.1% from the year-ago quarter.
In the quarter, the company repurchased 3 million of its ordinary shares for a total of $80 million. Including a dividend payment of $21.5 million. Total shareholder distributions for the quarter amounted to $101.5 million.
On Oct. 23, FTI’s board of directors declared a quarterly cash dividend of 5 cents per share to its common shareholders of record as of Nov. 19, 2024. The payout, which is unchanged from the previous quarter, will be made on Dec. 4. Additionally, the company announced that its board of directors has approved an additional $1 billion for share repurchases. This brings the total authorization to $1.2 billion. Since the initial repurchase authorization in July 2022, the company has returned more than $740 million to its shareholders through stock buybacks and dividends.
TechnipFMC plc Price, Consensus and EPS Surprise
TechnipFMC plc price-consensus-eps-surprise-chart | TechnipFMC plc Quote
Segmental Analysis of TechnipFMC
Subsea: Revenues from this segment totaled $2 billion, up 18.7% from the year-ago quarter’s $1.7 billion. The figure also beat our projection by 1.1%. Revenue growth was driven by heightened iEPCI project activity. Adjusted EBITDA was up about 43.9% from the year-ago quarter’s level. The performance of this segment improved due to a better earnings mix from the backlog and strong project execution in the quarter.
On the other hand, FTI’s inbound orders increased 34.7% year over year to $2.5 billion. The backlog rose 13.7% at the same time.
Surface Technologies: This segment recorded revenues of $320.3 million, down 8.1% year over year. However, the matric beat our projection of $313.2 million.
The unit's adjusted EBITDA fell 1.6%, primarily due to a decline in wellhead equipment sales in North America. The segment’s inbound orders increased 1.3% year over year. The quarter-end backlog also decreased 16.4% at the same time.
FTI’s Financials
TechnipFMC reported $2.1 billion in costs and expenses, which was 8.7% higher than the year-ago quarter’s $1.9 billion.
In the reported quarter, this Zacks Rank #3 (Hold) company invested $52.6 million in capital programs and generated $278 million in cash flow from operations, while free cash flow increased to $225 million. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
As of Sept. 30, FTI had cash and cash equivalents worth $837.5 million and long-term debt of $656.3 million, with a debt-to-capitalization of 22.9%.
Outlook for TechnipFMC
The company expects revenues from the Subsea unit in the $7.6-$7.8 billion range for 2024. It also anticipates revenues between $1.2 billion and $1.35 billion for the Surface Technologies unit.
The adjusted EBITDA margin is anticipated in the range of 16.5-17% for the Subsea segment and between 13% and 15% for the Surface Technologies segment.
The company anticipates generating free cash flow in the range of $425 million to $575 million for 2024, which includes a $170 million payment for a legal settlement.
It also expects annual capital expenditure of $275 million and net interest expense in the band of $65-$70 million for the year. FTI anticipates net corporate expenses in the range of $115-$125 million, including depreciation and amortization of $3 million, net interest expense of $65-$70 million and tax provisions of $170-$180 million.
For 2025, the company anticipates Subsea revenues to range between $8.3 billion and $8.7 billion, with an adjusted EBITDA margin of 18.5% to 20%, reflecting significant growth compared with 2024. Management’s confidence is based on its strong project pipeline, continuous improvement in project execution and strategic focus on integrated projects and innovative technology solutions.
Important Energy Earnings So Far
While it is early in the earnings season, there have been a few key energy releases so far. Let us glance through a couple of them.
Liberty Energy LBRT, the Denver-CO-based oil and gas equipment company, announced an adjusted net income of 45 cents per share, which missed the Zacks Consensus Estimate of 55 cents. This was primarily due to poor equipment and services execution and lower activity in the reported quarter. Additionally, the bottom line declined from the year-ago quarter’s reported figure of 86 cents due to a year-over-year increase in costs and expenses.
Ahead of the earnings release, LBRT’s board of directors announced a dividend of 8 cents per common share payable on Dec. 20, to its stockholders of record as of Dec. 6. This dividend represents a 14% increase from the prior regular quarterly dividend of 7 cents per share. In the quarter, Liberty returned $51 million to its shareholders through a combination of share repurchases and cash dividends.
Energy infrastructure provider, Kinder Morgan, Inc. KMI reported third-quarter adjusted earnings per share of 25 cents, which missed the Zacks Consensus Estimate of 27 cents. The bottom line was flat year over year. The weakness in quarterly results was caused by lower contributions from the Products Pipelines and CO2 business segments.
KMI also announced a quarterly cash dividend of 28.75 cents per share for the third quarter of 2024 (annualized dividend of $1.15), implying a 2% increase from the third-quarter 2023 level. The dividend is payable on Nov. 15, 2024, to its shareholders of record as of Oct. 31.
Schlumberger Limited SLB, a Houston, TX-based oil and gas equipment and services provider announced third-quarter earnings of 89 cents per share (excluding charges and credits), which beat the Zacks Consensus Estimate of 88 cents. The bottom line also increased from the year-ago quarter’s 78 cents. The strong quarterly earnings were primarily driven by broad-based earnings growth and margin expansion, especially in the Middle East, Asia and offshore North America. Additionally, cost optimization, greater adoption of digital solutions and contributions from long-cycle deepwater and gas projects played significant roles.
SLB reported a free cash flow of $1.81 billion in the third quarter. As of Sept. 30, the company had approximately $4.46 billion in cash and short-term investments. At the end of the quarter, it registered a long-term debt of $11.86 billion.
Only $1 to See All Zacks' Buys and Sells
We're not kidding.
Several years ago, we shocked our members by offering them 30-day access to all our picks for the total sum of only $1. No obligation to spend another cent.
Thousands have taken advantage of this opportunity. Thousands did not - they thought there must be a catch. Yes, we do have a reason. We want you to get acquainted with our portfolio services like Surprise Trader, Stocks Under $10, Technology Innovators,and more, that closed 228 positions with double- and triple-digit gains in 2023 alone.
See Stocks Now >>Schlumberger Limited (SLB) : Free Stock Analysis Report
TechnipFMC plc (FTI) : Free Stock Analysis Report
Kinder Morgan, Inc. (KMI) : Free Stock Analysis Report
Liberty Energy Inc. (LBRT) : Free Stock Analysis Report
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
