TechnipFMC (FTI) investor relations material

Market outlook and industry trends

• Offshore project certainty and new technology are driving increased capital flows into offshore energy, with a 30% growth in likely FID projects over the past two years and robust growth expected through 2027 and beyond.

• Emerging basins like Suriname, Namibia, Mozambique, and Indonesia are expected to contribute more meaningfully to offshore growth towards the end of the decade, supplementing traditional regions.

• Global supply shocks have led customers to diversify supply sources, increasing offshore capital expenditures and driving demand in regions like Asia and Indonesia.

• Customers are reassessing risk and diversifying spend across multiple regions, further supporting offshore activity.

Technological innovation and operational transformation

• Transition from engineer-to-order to configure-to-order (Subsea 2.0®) has reduced cycle times, improved efficiency, and lowered offshore breakevens.

• Subsea 2.0® allows customers to configure equipment via an app, streamlining manufacturing and reducing engineering time by 9-12 months.

• Integrated project delivery (iEPCI™) combines equipment and installation, removing 30% of hardware and interfaces, leading to 80% of business being direct awarded.

• Ongoing industrialization of installation (SURF 2.0) is expected to further reduce cycle times and costs, with significant impact anticipated.

Financial performance and outlook

• Subsea revenue guidance for 2026 is $9.4 billion with 21.5% EBITDA margins, and growth in inbound orders, revenue, and EBITDA is expected to continue into 2027.

• Strong free cash flow generation (65% conversion), net cash position of $540 million, and low CapEx requirements (3.5%-4.5% of revenue) support ongoing growth.

• Focus on returns and capital efficiency has driven record ROIC, with over 70% of free cash flow returned to shareholders.

• Continued investment in technology and automation is prioritized, with no major acquisitions planned.