TechnipFMC's Q2 2025: Unraveling Contradictions in Subsea Services Growth, Gulf Market Dynamics, and Margin Expectations

Subsea services growth and order dynamics, U.S. Gulf market activity and tariffs, Subsea revenue growth and services revenue expectations, Subsea margins and margin growth expectations are the key contradictions discussed in TechnipFMC's latest 2025Q2 earnings call.



Strong Subsea Order Book:
- TechnipFMC reported $2.6 billion in Subsea orders for the quarter, with a significant portion being direct awards to the company.
- This trend is attributed to the ongoing success of the iEPCI and Subsea services models, which have led to a substantial increase in the installed base and recurring services revenue.

Revenue and Earnings Improvement:
- Revenue reached $2.5 billion for the quarter, and adjusted EBITDA was $509 million with a margin of 20.1%.
- The improvement in earnings is due to operational excellence and structural changes, including the transformation of Subsea operations and optimization in Surface Technologies.

Focus on Greenfield and Brownfield Projects:
- The order book includes nearly half from greenfield developments, highlighting ongoing strong interest in both brownfield and new field development projects.
- This is driven by high offshore activity, robust front-end engineering, and the company's strategic focus on these areas, supported by strong customer relationships.

Technological Innovations:
- TechnipFMC continues to advance its Subsea offerings, such as the hybrid flexible pipe and all-electric technology, demonstrating its commitment to innovation and competitive differentiation.
- These developments are aimed at solving industry challenges and enhancing operational efficiency, thereby increasing customer value and market share.

Guidance and Future Outlook:
- The company has increased its full-year adjusted EBITDA guidance to $1.8 billion, reflecting improved operational performance and strong market conditions.
- This positive outlook is supported by a robust backlog, continued strength in offshore markets, and a confirmation of reaching the 3-year goal of $30 billion in Subsea inbound by the end of the year.