Orders and Outlook
TechnipFMC’s (FTI) Subsea opportunity list expanded in Q3 2026, reflecting sustained deepwater activity and a shift toward larger, higher-quality offshore reservoirs. The company’s management expects Subsea inbound orders over the next five quarters to reach at least $14.5 billion. It announced three Subsea awards during Q3, including flexible-pipeline contracts for Azule Energy in Angola and Petrobras in Brazil, plus an integrated contract for PETRONAS’ Limbayong project in Malaysia.
The company raised its 2026 Subsea revenue guidance to $9.6–$9.8 billion and initiated 2027 Subsea guidance of $10.0–$10.4 billion. FTI also highlighted a strategic collaboration with bp on subsea tree systems for Gulf of America Paleogene projects, supporting its positioning for longer-term offshore development.
Segment Performance in Q3
Subsea revenue increased 4.5% sequentially, while operating profit rose 7.4% and adjusted EBITDA increased 6.0%. Adjusted EBITDA margin expanded 30 basis points to 23.5%, supported by stronger execution and higher project and services activity. Indonesia and Brazil iEPCI projects drove growth, partly offset by lower activity in Norway.
Surface Technologies revenue rose 7.1% sequentially in Q3 as Middle East activity and North American completion services improved. Adjusted EBITDA increased 6.6%, although margin eased marginally. The segment’s inbound orders rose 22.1% sequentially, but backlog declined 4.6%.
Cash Flows & Balance Sheet
FTI’s operating cash flow and free cash flow increased during 9M 2026 compared to 9M 2025. Share repurchases and dividends totaled $339 million, while cash ended the quarter at about $1.04 billion. Management raised 2026 FCF guidance to $1.45–$1.55 billion from $1.3–$1.45 billion. Subsea revenue guidance was also increased, while the company initiated 2027 guidance, signaling confidence in sustained offshore project activity.
Thanks for reading the FTI Take Three, designed to give you three critical takeaways from FTI's earnings report. Soon, we will present a second update on FTI earnings, highlighting its current strategy, news, and notes from our deeper dive.
