Summary of TechnipFMC Q2 2026 Earnings Call

1Key Financial Results and Metrics

Total Revenue:: $2.8 billion

Adjusted EBITDA:: $601 million (margin of 21.8% excluding foreign exchange impacts)

Free Cash Flow:: $488 million

Shareholder Returns:: $440 million distributed through dividends and share repurchases

Inbound Orders:: $2.7 billion, with $2.5 billion from Subsea

Subsea Revenue:: $2.5 billion (up 13% sequentially)

Surface Technologies Revenue:: $276 million (down 3% sequentially)

Net Cash Position:: $590 million

Corporate Expenses:: $26 million; Net Interest Expense: $4 million; Tax Expense: $114 million

2Strategic Updates and Business Highlights

Subsea Orders:: Strong inbound orders driven by a portfolio approach to brownfield expansions, with significant awards from Var Energi and Equinor.

Integrated Model:: Continued success with the iEPCI model, enhancing project delivery speed and cost efficiency.

Market Positioning:: TechnipFMC is positioned as a trusted partner, engaging earlier in the project lifecycle, which enhances visibility and project certainty.

Surface Technologies:: Focus on high-return customers in strategic geographies, with recognition from ADNOC for local manufacturing contributions.

Subsea 2.0:: 80% of new orders are now utilizing Subsea 2.0 architecture, with ongoing efforts to industrialize the iEPCI model further.

3Forward Guidance and Outlook

2026 Expectations:: Increased total company adjusted EBITDA guidance to approximately $2.19 billion and free cash flow tracking towards $1.45 billion.

Subsea Outlook:: Anticipated revenue and adjusted EBITDA margin to remain strong in Q3, with a robust order pipeline expected to reach $10 billion in Subsea orders for 2026.

Long-Term Growth:: Confidence in a step-up in inbound orders in 2027, driven by larger greenfield projects and continued client collaboration.

4Bad News, Challenges, or Points of Concern

Surface Technologies Decline:: Revenue decreased due to lower activity in the Middle East, impacted by ongoing regional conflicts.

Market Volatility:: Economic uncertainties and geopolitical tensions may affect capital allocation decisions among clients, potentially impacting future orders.

Competitive Pressures:: While TechnipFMC maintains a strong position, there is concern over aggressive pricing strategies from competitors in competitive tenders.

5Notable Q&A Insights

Brownfield Opportunities:: Clients are increasingly looking for marginal fields and brownfield tiebacks, leveraging existing infrastructure for faster project execution.

Collaboration Benefits:: Engaging clients earlier in the project lifecycle enhances visibility and accelerates time to first oil, benefiting both TechnipFMC and its customers.

Gas Demand Growth:: There is a growing trend towards gas projects, particularly in Asia, which could enhance TechnipFMC's subsea processing opportunities.

iEPCI 2.0 Development:: The company is focused on advancing the industrialization of the water column and installation aspects of subsea projects, which could significantly enhance project economics and reduce cycle times. This summary encapsulates the key points from TechnipFMC's Q2 2026 earnings call, highlighting financial performance, strategic initiatives, and future outlook while addressing potential challenges and insights from the Q&A session.