TechnipFMC reported higher revenue and profit for the third quarter, alongside strong cash generation. The oilfield-services company also raised its 2026 Subsea revenue outlook and said it expects at least $14.5 billion in Subsea orders over the next five quarters, including its expectations for 2027.
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Revenue and earnings grew year over year. Third-quarter revenue was $2.90 billion, up 9.4% from a year earlier and 4.8% from the second quarter. Net income was $418.4 million, or $1.05 per diluted share, compared with $309.7 million and $0.75 a share a year ago.
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Profitability improved. Adjusted EBITDA was $627.8 million, up 21% year over year, and its margin rose to 21.7% from 19.6%. The quarter included an $8.6 million foreign-exchange loss; excluding that loss, adjusted EBITDA was $636.4 million. Net income excluding the after-tax effect of the currency loss was $426.4 million.
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Cash generation was substantial. Cash flow from operations totaled $531 million, while free cash flow was $470 million.
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Orders and backlog were lower than a year ago. Total inbound orders were $2.32 billion, including $2.1 billion in Subsea orders. Inbound orders fell 12.4% year over year and 14.9% from the prior quarter. Backlog stood at $16.07 billion, down 4.4% year over year and 2.3% sequentially.
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Subsea revenue guidance for 2026 increased. TechnipFMC now expects Subsea revenue of $9.6 billion to $9.8 billion for the year. It also began providing Subsea financial guidance for 2027.
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The company expects a strong order pipeline. TechnipFMC anticipates at least $14.5 billion in Subsea inbound orders over the next five quarters, including expectations for 2027.
The quarter combined year-over-year earnings growth with significant free cash flow. At the same time, the lower inbound orders and backlog show that both measures were below year-ago levels.