NYSE:FTI
TechnipFMC plc
A global engineering and project management leader delivering critical lifecycle services for the oil and gas industry with robust operational cash flow.
Key Metrics
Investment Thesis
Bull Case
FTI presents an attractive value play as it returns to profitability after cyclical downturns, supported by a robust balance sheet with over $1B in cash and minimal current debt obligations. The company's high operating cash flow of $1.76B provides significant flexibility for strategic acquisitions or share buybacks once market conditions stabilize. Diversified service lines across upstream, midstream, and downstream sectors offer natural hedges against single-market downturns.
Bear Case
Investors should be cautious given the cyclical nature of the oil and gas sector where a sustained drop in energy prices could severely impact client spending on FTI's high-cost engineering projects. The company carries a significant retained earnings deficit of $-3.76B and accumulated other comprehensive losses, which may limit financial maneuverability during prolonged downturns. Recent working capital changes were negative at $-281.3M, suggesting potential inventory buildup or receivables issues that could pressure future margins.
About TechnipFMC plc
TechnipFMC (FTI) is a global provider of engineering, procurement, construction, and project management services primarily serving the oil and gas industry. The company delivers comprehensive solutions across upstream exploration and production, midstream infrastructure, and downstream refining sectors worldwide. With strong cash flow generation and diversified service offerings, FTI helps clients navigate complex energy projects from concept to completion.
Analysis
Management Discussion
The company demonstrated a remarkable turnaround in 2025, posting $967.1M in net profit compared to just $855.3M in 2024, while revenue grew sequentially to nearly $10B. Strong operating cash flow of $1.76B significantly exceeded net income, highlighting the quality of earnings and effective working capital management with a healthy $1.03B cash position. However, the company continues to manage elevated accumulated other comprehensive losses of $-1.36B and substantial retained earnings deficits requiring careful capital allocation.
Industry Overview
The oil and gas engineering services industry is highly cyclical, tightly coupled with global energy demand and commodity prices which dictate client investment in exploration and infrastructure projects. Leading firms compete on technical expertise, safety records, and project management capabilities rather than price alone, creating high barriers to entry for new competitors. Geopolitical tensions and the energy transition are reshaping the landscape, pushing companies like FTI to adapt their portfolios toward lower-carbon technologies.
Financial Statements
Income Statement
Balance Sheet
Cash Flow
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Revenue | $6.70B | $7.82B | $9.08B | $9.93B |
| Cost of Revenue | $0 | $0 | $7.36B | $0 |
| Gross Profit | $6.70B | $7.82B | $1.72B | $9.93B |
| Operating Expenses | $6.32B | $7.17B | $564.2M | $8.50B |
| Operating Income | $375.9M | $658.2M | $1.16B | $1.44B |
| R&D | $67.0M | $69.0M | $73.4M | $83.1M |
| G&A | $616.8M | $675.9M | $667.1M | $705.3M |
| Stock-Based Comp | $40.5M | $40.9M | $58.3M | $61.9M |
| D&A | $377.2M | $377.8M | $392.7M | $441.8M |
| Depreciation | $285.2M | $288.1M | $280.4M | $325.3M |
| Other OpEx | $5.64B | $6.42B | $-176.3M | $7.71B |
| Non-Operating Income | $-307.0M | $-451.6M | $-216.9M | $-166.1M |
| Interest Expense | $138.7M | $122.2M | — | — |
| Interest Income | $17.8M | $33.5M | $33.9M | $41.9M |
| Pre-Tax Income | $68.9M | $206.6M | $940.4M | $1.27B |
| Income Tax | $105.4M | $154.7M | $85.1M | $302.9M |
| Continuing Ops | $-36.5M | $51.9M | $855.3M | $963.9M |
| Discontinued Ops | $-45.3M | $0 | $0 | $3.2M |
| Net Income | $-81.8M | $51.9M | $855.3M | $967.1M |
| Minority Interest | $0 | $0 | $0 | $0 |
| Net to Common | $-81.8M | $51.9M | $855.3M | $967.1M |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Current Assets | $4.99B | $5.20B | $5.47B | $5.55B |
| Cash & Equivalents | $1.06B | $951.7M | $1.16B | $1.03B |
| Inventory | $1.04B | $1.10B | $1.08B | $1.15B |
| Other Current Assets | $2.89B | $3.14B | $3.23B | $3.36B |
| Long-Term Assets | $4.46B | $4.46B | $4.40B | $4.57B |
| PP&E (Net) | $2.35B | $2.27B | $2.13B | $2.29B |
| Intangibles | $716.0M | $601.6M | $508.3M | $425.7M |
| Operating Leases | $801.9M | $739.6M | $723.3M | $773.5M |
| Other LT Assets | $257.8M | $574.7M | $791.7M | $857.3M |
| Total Assets | $9.44B | $9.66B | $9.87B | $10.12B |
| Current Liabilities | $4.17B | $4.47B | $4.86B | $4.91B |
| Accounts Payable | $1.28B | $1.36B | $1.30B | $1.18B |
| Current Debt | $367.3M | $153.8M | $277.9M | $34.3M |
| Current Leases | $136.1M | $136.5M | $131.0M | $146.7M |
| Deferred Revenue | $1.16B | $1.49B | $1.79B | $2.15B |
| Taxes Payable | $96.7M | $146.8M | $156.5M | $142.1M |
| Other Current Liab | $1.14B | $1.19B | $1.21B | $1.26B |
| Long-Term Liabilities | $1.99B | $2.02B | $1.87B | $1.80B |
| Long-Term Debt | $999.3M | $913.5M | $607.3M | $395.7M |
| LT Operating Leases | $735.7M | $667.1M | $661.5M | $673.7M |
| Other LT Liab | $258.3M | $435.3M | $597.2M | $728.7M |
| Total Liabilities | $6.17B | $6.48B | $6.73B | $6.71B |
| Shareholders' Equity | $3.28B | $3.17B | $3.14B | $3.41B |
| Retained Earnings | $-5.01B | $-4.99B | $-4.31B | $-3.76B |
| AOCI | $-1.30B | $-1.24B | $-1.67B | $-1.36B |
| Total L&E | $9.44B | $9.66B | $9.87B | $10.12B |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Net Income (CFO) | $-81.8M | $51.9M | $855.3M | $967.1M |
| Non-Cash Adjustments | $24.8M | $54.4M | $-723.7M | $1.08B |
| Working Capital Changes | $409.1M | $586.7M | $829.4M | $-281.3M |
| Cash from Operations | $352.1M | $693.0M | $961.0M | $1.76B |
| Capital Expenditures | $157.9M | $225.2M | $281.6M | $317.2M |
| Cash from Investing | $162.2M | $-125.6M | $-75.8M | $-298.3M |
| Debt Issuances | $60.9M | $0 | $0 | — |
| Debt Repayments | $451.7M | $0 | $0 | — |
| Dividends Paid | $0 | $43.5M | $85.9M | $82.3M |
| Cash from Financing | $-796.7M | $-656.5M | $-648.0M | $-1.62B |
| FX Effect | $12.1M | $-16.3M | $-31.2M | $28.8M |
| Net Change in Cash | $-270.3M | $-105.4M | $206.0M | $-125.8M |
| Beginning Cash | $1.33B | $1.06B | $951.7M | $1.16B |
| Ending Cash | $1.06B | $951.7M | $1.16B | $1.03B |
Frequently Asked Questions
How does TechnipFMC plc make money?
Core revenue streams include Upstream services for exploration and production, Midstream solutions for pipeline and storage infrastructure, Downstream support for refining operations, and specialized Project Management & Engineering consulting.
What are the main risks for FTI?
Exposure to volatile oil and gas commodity prices affecting client capital expenditure, potential for long project delays impacting margin realization, regulatory changes in key operating jurisdictions like the US Gulf of Mexico, and integration risks from past acquisitions impacting working capital efficiency.
What is FTI's competitive advantage?
Global footprint allowing seamless cross-border project execution, deep technical expertise in complex subsea and deepwater projects, and a diversified service portfolio reducing reliance on any single market cycle.
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Not financial advice. All content is for informational purposes only. Data may contain errors. Consult a qualified financial advisor before making investment decisions.