TechnipFMC plc (NYSE:FTI), a leading technology provider to the energy industry, reported its fourth-quarter and full-year 2025 financial results, delivering earnings that surpassed analyst expectations. The company's performance was driven by strong operational execution and a robust backlog, though the market's initial reaction was muted.
Earnings Performance vs. Estimates
The company's fourth-quarter results exceeded consensus estimates on the bottom line, while revenue came in slightly below expectations.
- Revenue: Reported revenue of $2.52 billion for Q4 2025, which was approximately 1.5% below the analyst estimate of $2.56 billion.
- Earnings Per Share (Adjusted): Reported adjusted diluted EPS of $0.70, which significantly outperformed the analyst estimate of $0.51.
For the full year 2025, the company reported revenue of $9.93 billion, a 9.4% increase year-over-year, and adjusted diluted EPS of $2.45, a 34.6% increase from the prior year. The strong earnings beat was attributed to solid operational performance and a discrete non-cash tax benefit of $79.8 million related to the release of valuation allowances on deferred tax assets.
Market Reaction and Price Action
Despite the earnings beat, the stock's immediate reaction in pre-market trading was negative, indicating a potential "sell the news" event or investor focus on other aspects of the report, such as the sequential decline in quarterly profitability or the revenue miss. The pre-market performance showed a decline of approximately 0.75%. This contrasts with the stock's positive performance over longer periods, with gains of 3.4% over the past week, 8.6% over two weeks, and 19.3% over the past month, suggesting the earnings news may have been partially anticipated or that investors are weighing strong full-year results against a mixed quarterly picture.
Key Highlights from the Earnings Release
Chair and CEO Doug Pferdehirt characterized 2025 as "another year of exceptional performance," highlighting strong operational momentum and financial delivery. The most significant elements from the report include:
- Subsea Dominance: The Subsea segment remains the core driver, with full-year inbound orders of $10.1 billion. The company noted that direct awards, integrated project execution (iEPCI™), and Subsea Services now account for over 80% of Subsea inbound orders.
- Record Backlog: Total company ending backlog grew 15.3% year-over-year to $16.6 billion, with Subsea backlog reaching $15.9 billion. This provides significant revenue visibility, with an estimated $5.98 billion of the consolidated backlog scheduled for execution in 2026.
- Strong Cash Generation: The company emphasized robust cash flow, with free cash flow for the year more than doubling to $1.4 billion. Shareholder distributions also more than doubled to $1.0 billion for the year, including share repurchases of $168.1 million in the fourth quarter.
- Updated 2026 Guidance: Management provided an optimistic outlook for the current year, raising the midpoint of its Subsea revenue and adjusted EBITDA margin guidance. The company expects Subsea revenue between $9.2 and $9.6 billion and an adjusted EBITDA margin between 21% and 22%. For the total company, free cash flow is projected to be between $1.3 and $1.45 billion.
Forward Outlook vs. Analyst Expectations
The company's 2026 revenue guidance for its Subsea segment, with a midpoint of $9.4 billion, appears conservative when compared to the broader analyst sales estimate for the full company of $10.76 billion for 2026. This discrepancy may be due to the timing of revenue recognition from the large backlog or differing segment definitions. For the upcoming first quarter of 2026, analysts are estimating revenue of approximately $2.48 billion and EPS of $0.53.
The company expressed confidence in the offshore market's strength, citing a Subsea opportunity list valued at approximately $29 billion and the expectation of another $10 billion in Subsea inbound orders for 2026.
For a detailed breakdown of past and future earnings estimates for TechnipFMC, you can review the data here.
Disclaimer: This article is for informational purposes only and does not constitute investment advice, financial analysis, or a recommendation to buy or sell any security. Investors should conduct their own research and consult with a qualified financial advisor before making any investment decisions.
