Technip Energies (TE) Q2 2026 earnings summary

Executive summary

• Revenue for H1 2026 was stable year-over-year at €3.7–3.82 billion, with growth driven by LNG and decarbonization projects, but recurring EBITDA declined to €212 million due to operational challenges and Middle East disruptions.

• Order intake reached a record €12.7 billion, driving backlog to €25 billion, up over 50% from year-end 2025 and equivalent to three years of revenue.

• Capital returns to shareholders totaled around €300 million, including a €150 million share buyback and annual dividend, representing over 5% of market capitalization.

• Employee share ownership increased, with 42–45% of employees now shareholders, owning 3.5% of the stock.

• Strategic focus remains on energy transition, decarbonization, and geographic diversification, with 75% of new awards outside the Middle East.

Financial highlights

• Adjusted recurring EBITDA for H1 2026 was €212 million, down 33% year-over-year, with margin at 5.8% (vs 8.7%).

• Free cash flow conversion (excluding working capital and provisions) remained high at 86%, with free cash flow at €183 million.

• Gross cash reached €4.8 billion, with economic net cash over €900 million and liquidity of €5.6 billion including undrawn RCF.

• Net profit for H1 2026 was €94–94.7 million, down from €194.9–196.6 million in H1 2025.

• €500 million bond issued, more than 5x oversubscribed, supporting general corporate purposes.

Outlook and guidance

• Project Delivery revenue guidance for 2026 is €5.7–6.3 billion (unchanged), but EBITDA margin guidance was lowered to above 5% (from 6.5–7.5%) due to Middle East disruptions.

• TPS revenue guidance is €1.9–2.2 billion, with EBITDA margin raised to ~15% (from ~14.5%).

• Effective tax rate guidance increased to 30–32% due to unfavorable earnings mix.

• Sequential profitability improvement is expected in H2, with potential upside if commercial discussions progress.

• Longer-term outlook supported by global energy diversification and sovereignty trends, with portfolio compatible with €800 million EBITDA trajectory for 2028.