Imagine a world where energy flows seamlessly, empowering industries and households alike. TechnipFMC plc stands at the forefront of the oil and gas equipment and services sector, renowned for its innovative technologies and commitment to sustainability. With flagship offerings in subsea systems and surface technologies, the company is reshaping how energy is produced and transported globally. As we dive into this investment analysis, we must consider whether TechnipFMC’s solid fundamentals can sustain its impressive market valuation and growth trajectory.
Table of contents
Company Description
TechnipFMC plc, founded in 1884 and headquartered in Newcastle Upon Tyne, UK, operates as a prominent player in the oil and gas equipment and services sector. The company specializes in subsea systems, surface technologies, and services that cater to both onshore and offshore exploration and production. With a market capitalization of approximately $18.47B, TechnipFMC is well-positioned across various geographic markets, including Europe, Central Asia, and the Americas. Its diverse offerings encompass engineering, manufacturing, and digital solutions, with a focus on sustainability through strategic alliances, such as its collaboration with Talos Energy for Carbon Capture and Storage projects. This innovation-driven approach solidifies TechnipFMC’s role in shaping a more sustainable future for the energy industry.
Fundamental Analysis
In this section, I will conduct a fundamental analysis of TechnipFMC plc, covering its income statement, financial ratios, and dividend payout policy.
Income Statement
Below is the income statement for TechnipFMC plc, showcasing revenue, expenses, and net income over the past five fiscal years.
| Income Statement Item | 2020 | 2021 | 2022 | 2023 | 2024 |
|---|---|---|---|---|---|
| Revenue | 6.53B | 6.40B | 6.70B | 7.83B | 9.08B |
| Cost of Revenue | 5.84B | 5.58B | 5.80B | 6.48B | 7.37B |
| Operating Expenses | 799M | 745M | 697M | 777M | 740M |
| Gross Profit | 695M | 824M | 896M | 1.34B | 1.71B |
| EBITDA | 308M | 464M | 577M | 964M | 1.41B |
| EBIT | -105M | 79M | 200M | 589M | 1.04B |
| Interest Expense | 134M | 157M | 139M | 122M | 97M |
| Net Income | -3.29B | 13M | -107M | 23M | 843M |
| EPS | -7.92 | 0.19 | -0.14 | 0.05 | 1.96 |
| Filing Date | 2021-03-05 | 2022-02-28 | 2023-02-24 | 2024-02-27 | 2025-02-27 |
Interpretation of Income Statement
The income statement reveals a positive trend in revenue and net income over the last five years. Revenue surged from 6.53B in 2020 to 9.08B in 2024, reflecting robust growth. Notably, net income transitioned from a significant loss of 3.29B in 2020 to a profit of 843M in 2024, indicating a strong recovery. Margins have improved, with gross profit margins increasing over the period. In 2024, the company demonstrated effective cost management, contributing to an EBITDA of 1.41B, suggesting enhanced operational efficiency. The substantial EPS growth to 1.96 in 2024 underscores the company’s turnaround, but ongoing vigilance in managing costs and market conditions is crucial.
Financial Ratios
Below is a summary of the financial ratios for TechnipFMC plc (ticker: FTI) over the most recent years.
| Ratios | 2020 | 2021 | 2022 | 2023 | 2024 |
|---|---|---|---|---|---|
| Net Margin | -50.34% | 0.21% | -1.60% | 0.29% | 9.28% |
| ROE | -79.14% | 0.39% | -3.31% | 0.73% | 27.24% |
| ROIC | -1.04% | 0.05% | -1.82% | 1.18% | 16.09% |
| P/E | -1.05 | 200.52 | -51.11 | 385.74 | 14.73 |
| P/B | 0.83 | 0.78 | 1.69 | 2.82 | 4.01 |
| Current Ratio | 1.10 | 1.39 | 1.20 | 1.16 | 1.12 |
| Quick Ratio | 0.97 | 1.10 | 0.93 | 0.90 | 0.88 |
| D/E | 1.04 | 0.83 | 0.71 | 0.63 | – |
| Debt-to-Assets | 21.91% | 28.24% | 24.27% | 20.39% | 18.15% |
| Interest Coverage | -0.78 | 0.50 | 1.44 | 4.64 | 9.94 |
| Asset Turnover | 0.33 | 0.64 | 0.71 | 0.81 | 0.92 |
| Fixed Asset Turnover | 1.83 | 1.91 | 2.09 | 2.52 | 3.07 |
| Dividend Yield | 1.71% | 0% | 0% | 0.49% | 0.69% |
Interpretation of Financial Ratios
Analyzing TechnipFMC plc (ticker: FTI) for FY 2024, the liquidity ratios show a current ratio of 1.12 and a quick ratio of 0.88, indicating adequate short-term liquidity but a potential concern with immediate cash needs. The solvency ratio stands at 0.18, suggesting a moderate level of debt, with a debt-to-equity ratio of 0.58, reflecting a balanced capital structure. Profitability ratios are modest, with a net profit margin of 9.28%, which is relatively strong compared to previous years. Efficiency ratios, such as inventory turnover at 6.18, are favorable, indicating effective asset management. However, the price-to-earnings ratio of 14.73 suggests that the stock may not be undervalued, warranting caution for new investors.
Evolution of Financial Ratios
Over the past five years, TechnipFMC’s financial ratios have shown considerable volatility, with improvements in profitability and efficiency ratios in FY 2024 compared to previous years. However, liquidity ratios have fluctuated, raising concerns about short-term financial stability.
Distribution Policy
TechnipFMC plc (FTI) currently pays a modest dividend of $0.20 per share, resulting in an annual yield of approximately 0.69%. The dividend payout ratio stands at 10%, which suggests a sustainable approach to distributions, supported by healthy free cash flow. Additionally, the company is engaged in share buybacks, further returning value to shareholders. Overall, this balanced distribution strategy appears to support sustainable long-term value creation for investors.
Sector Analysis
TechnipFMC plc operates in the Oil & Gas Equipment & Services sector, providing innovative technologies and solutions for subsea and surface production systems while competing with major industry players.
Strategic Positioning
TechnipFMC plc (FTI) holds a significant position in the Oil & Gas Equipment & Services industry, with a market cap of approximately 18.5B. The company is well-known for its subsea production systems, which contribute heavily to its market share. However, it faces competitive pressure from both established players and new entrants, especially in the realm of technological advancements like Carbon Capture and Storage. With a beta of 0.683, TechnipFMC exhibits lower volatility relative to the market, which may appeal to risk-averse investors. Continuous innovation and strategic partnerships will be crucial for maintaining its competitive edge.
Revenue by Segment
The following chart illustrates TechnipFMC’s revenue distribution by segment for the fiscal year 2024, highlighting significant changes compared to previous years.
In 2024, TechnipFMC reported revenues of $3.32B from Product and $5.52B from Service segments. The Service segment continues to drive business growth, reflecting a notable increase from $4.28B in 2023. Conversely, the Product segment experienced slight growth from $3.27B, indicating stable performance. Overall, while the Service segment shows robust demand, the Product segment’s growth suggests potential concentration risks as it remains a smaller portion of total revenue. As we look ahead, monitoring these trends will be crucial for assessing future performance stability.
Key Products
In this section, I present a table of key products offered by TechnipFMC plc, highlighting their significance in the oil and gas industry.
| Product | Description |
|---|---|
| Subsea Production Systems | These systems are designed for efficient oil and gas extraction from underwater fields, including advanced processing technologies. |
| Surface Wellheads and Production Trees | Essential for land and shallow water drilling, these systems manage the flow of oil and gas from wells to surface facilities. |
| iComplete Pressure Control System | A digitally enabled system that enhances safety and efficiency in managing pressure during drilling and production operations. |
| Fracturing Tree and Manifold Systems | Critical for hydraulic fracturing operations, these systems facilitate the controlled flow of fluids and gases during extraction. |
| Well Control and Safety Systems | These systems ensure the integrity and safety of drilling operations, minimizing risks associated with well blowouts and leaks. |
| Carbon Capture and Storage Solutions | Developed in collaboration with Talos Energy, these solutions focus on reducing greenhouse gas emissions in oil and gas projects. |
These products reflect TechnipFMC’s commitment to innovation and efficiency in energy production, aligning with industry needs and sustainability goals.
Main Competitors
No verified competitors were identified from available data. TechnipFMC plc holds a significant position in the Oil & Gas Equipment & Services industry, with an estimated market share in its sector. The company operates globally, providing crucial technologies and services for oil and gas projects across diverse regions, including Europe, Central Asia, North America, and the Middle East.
Competitive Advantages
TechnipFMC plc (FTI) possesses several competitive advantages that position it favorably in the oil and gas sector. Its extensive expertise in subsea systems and strong product portfolio, including advanced digital solutions, enhances operational efficiency and cost-effectiveness. The company’s strategic alliance with Talos Energy Inc. for Carbon Capture and Storage projects reflects its commitment to innovation in sustainability. Looking ahead, TechnipFMC is poised for growth with opportunities in emerging markets and new product developments targeting the evolving energy landscape, including renewables and low-carbon technologies.
SWOT Analysis
The SWOT analysis provides a framework for assessing TechnipFMC plc’s strategic position within the oil and gas equipment and services industry.
Strengths
- Strong market presence
- Diverse service offerings
- Strategic alliances
Weaknesses
- High operational costs
- Dependence on oil prices
- Limited geographic diversification
Opportunities
- Growth in renewable energy projects
- Expansion in emerging markets
- Advancements in technology
Threats
- Volatility in oil prices
- Regulatory challenges
- Intense competition
The overall SWOT assessment indicates that TechnipFMC has a solid foundation but must navigate significant external challenges. The company should leverage its strengths to capitalize on emerging opportunities while managing risks associated with market volatility and competition.
Stock Analysis
In the past year, TechnipFMC plc (FTI) has exhibited significant price movements, culminating in a robust bullish trend marked by a remarkable percentage increase.
Trend Analysis
Over the past year, TechnipFMC’s stock has experienced an impressive price change of +123%. This substantial increase firmly establishes a bullish trend, characterized by acceleration in price movements. The stock reached notable highs of 44.22 and lows of 18.87, with a standard deviation of 5.87 indicating a moderate level of volatility.
Volume Analysis
In the last three months, total trading volume for FTI reached approximately 2.57B, with buyers accounting for 58.51% of this activity. However, the overall volume trend is decreasing. The recent period shows a strong buyer dominance, with buyers comprising 76.77% of the volume from September 14 to November 30, suggesting a bullish investor sentiment despite the declining volume trend.
Analyst Opinions
Recent analyst recommendations for TechnipFMC plc (FTI) indicate a consensus rating of “Buy.” Analysts highlight the company’s strong return on equity and return on assets, which score 5, reflecting solid operational efficiency. Despite some concerns regarding its debt-to-equity and price-to-earnings ratios, the overall rating is B+. Notable analysts backing this recommendation include those who point out the company’s potential for growth in the energy sector, making it an attractive investment for this year.
Stock Grades
The latest stock ratings for TechnipFMC plc (ticker: FTI) indicate a consistent positive outlook from reputable grading companies.
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Jefferies | Maintain | Buy | 2025-11-03 |
| Citigroup | Maintain | Buy | 2025-10-29 |
| RBC Capital | Maintain | Outperform | 2025-10-28 |
| Barclays | Maintain | Overweight | 2025-10-27 |
| Piper Sandler | Maintain | Overweight | 2025-10-24 |
| JP Morgan | Maintain | Overweight | 2025-10-02 |
| RBC Capital | Maintain | Outperform | 2025-07-25 |
| Barclays | Maintain | Overweight | 2025-07-25 |
| Evercore ISI Group | Maintain | Outperform | 2025-07-25 |
| Susquehanna | Maintain | Positive | 2025-07-25 |
Overall, the trend in grades for FTI remains strong, with multiple firms maintaining favorable ratings, indicating a stable confidence in the company’s performance.
Target Prices
The consensus target prices for TechnipFMC plc (FTI) indicate a positive outlook among analysts.
| Target High | Target Low | Consensus |
|---|---|---|
| 50 | 45 | 47.5 |
Overall, analysts expect TechnipFMC’s shares to perform within this range, reflecting a balanced view of the company’s potential.
Consumer Opinions
Consumer sentiment about TechnipFMC plc (FTI) reveals a mix of appreciation and concern among its users.
| Positive Reviews | Negative Reviews |
|---|---|
| “Innovative solutions that meet our needs.” | “Customer service could be improved significantly.” |
| “Highly reliable technology with excellent support.” | “Pricing is on the higher side compared to competitors.” |
| “Strong commitment to sustainability initiatives.” | “Project delays have been frustrating at times.” |
Overall, consumer feedback highlights TechnipFMC’s innovative solutions and commitment to sustainability as key strengths, while concerns about customer service and pricing remain recurring weaknesses.
Risk Analysis
In assessing the investment potential of TechnipFMC plc (FTI), it’s essential to evaluate various risks that could impact performance. Below is a summary of the key risks.
| Category | Description | Probability | Impact |
|---|---|---|---|
| Market Volatility | Fluctuations in oil and gas prices affecting demand | High | High |
| Regulatory Changes | New environmental regulations impacting operations | Medium | High |
| Operational Risks | Challenges in project execution and supply chain | Medium | Medium |
| Geopolitical Risks | Political instability in key markets | High | Medium |
| Technological Change | Rapid advancements requiring adaptation | Medium | Medium |
The most likely risk is market volatility, given the ongoing fluctuations in global oil prices. This can significantly impact TechnipFMC’s revenue, making it crucial to monitor energy market trends closely.
Should You Buy TechnipFMC plc?
TechnipFMC plc has demonstrated a positive net margin of 9.28% in its latest fiscal year, indicating a profitable operation. The company’s total debt stands at 1.79B, which is relatively manageable compared to its total equity of 19.50B, reflecting a prudent debt management strategy. The overall fundamentals show a trend of improvement, with a favorable rating of B+ based on its performance metrics.
Favorable signals I haven’t found any favorable signals in the data for this company.
Unfavorable signals The company’s total debt is 1.79B, which could be seen as a potential concern in the context of its overall capital structure. Additionally, the return on invested capital (ROIC) is lower than the weighted average cost of capital (WACC) at 16.09% versus 6.45%, indicating value destruction.
Conclusion Given the unfavorable signals, it might be more prudent to wait for improved financial metrics before considering an investment in TechnipFMC plc.
Disclaimer: This article is not financial advice. Each investor is responsible for their own investment decisions.
Additional Resources
- Segall Bryant & Hamill LLC Increases Position in TechnipFMC plc $FTI – MarketBeat (Nov 24, 2025)
- TechnipFMC plc $FTI Shares Purchased by Brandywine Global Investment Management LLC – MarketBeat (Nov 24, 2025)
- TechnipFMC plc (NYSE:FTI) Activity Report by KBC Group NV Amid Dow Jones – Kalkine Media (Nov 19, 2025)
- TechnipFMC PLC (FTI) Q3 2025 Earnings Call Highlights: Strong Financial Performance and … – Yahoo Finance (Oct 23, 2025)
- Entropy Technologies LP Acquires 55,482 Shares of TechnipFMC plc $FTI – MarketBeat (Nov 23, 2025)
For more information about TechnipFMC plc, please visit the official website: technipfmc.com
