TechnipFMC: Q2 2026 TAKE THREE

Orders and Outlook

FTI’s management continues to expect approximately $10 billion of Subsea inbound orders in 2026, followed by another increase in 2027. Expanding offshore developments and a growing portfolio of brownfield opportunities utilizing its iEPCI execution model support the order growth. Recent awards from Vår Energi, Equinor, Azule Energy and Eni reinforce management's confidence that offshore capital spending remains resilient despite broader energy market volatility.

TechnipFMC booked $2.7 billion of inbound orders during Q2, including a 31.7% increase in Subsea inbound orders, while total backlog remained essentially stable.

Segment Performance in Q2

Subsea remained the clear growth engine during the quarter. Revenue increased 12.6% sequentially in Q2 as higher project activity, particularly across iEPCI projects in the North Sea and Mediterranean, drove strong operating leverage. Adjusted EBITDA expanded 31%, while EBITDA margin improved 320 basis points to 23.2%, reflecting higher execution quality and project mix. 

In contrast, Surface Technologies revenue declined 2.8% sequentially as reduced activity in the Middle East and North America offset stronger international markets. Despite lower revenue, adjusted EBITDA increased 1%, with margin expanding 70 basis points to 18.1%, demonstrating continued cost discipline.

Cash Flows & Balance Sheet

TechnipFMC cash flows improved during 1H 2026. It returned 90% of FCF to shareholders through dividends and share repurchases in Q2. The company repurchased $420 million of shares during Q2. It maintained its FY2026 free cash flow guidance of $1.3-$1.45 billion. It reinforced confidence that Subsea revenue and margins are tracking toward the high end of their guidance ranges.

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 we extracted from our deeper dive.