In the dynamic world of energy innovation, TechnipFMC plc stands as a beacon of progress, fundamentally reshaping how we approach oil and gas production. With its advanced subsea technologies and comprehensive surface solutions, the company not only leads the Oil & Gas Equipment & Services industry but also plays a crucial role in sustainable energy practices. As we delve into TechnipFMC’s investment potential, one must ask: do its robust fundamentals still support its current market valuation, or is there room for growth?
Table of contents
Company Description
TechnipFMC plc, founded in 1884 and headquartered in Newcastle upon Tyne, UK, is a prominent player in the oil and gas equipment and services industry. With a market capitalization of approximately $19.2B, the company operates globally across Europe, Central Asia, North and Latin America, the Asia Pacific, Africa, and the Middle East. TechnipFMC specializes in subsea systems and surface technologies, offering a comprehensive range of products and services, from engineering and manufacturing to installation and life-of-field services. The company is strategically positioned to lead in innovation, particularly in carbon capture and storage solutions through its alliance with Talos Energy Inc., shaping the future of sustainable energy practices.
Fundamental Analysis
In this section, I will conduct a fundamental analysis of TechnipFMC plc, focusing on its income statement, financial ratios, and dividend payout policy.
Income Statement
Below is the Income Statement for TechnipFMC plc for the last five fiscal years, showing key financial metrics that can help in evaluating the company’s performance.
| Metric | 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 | 78M | 200M | 589M | 1.04B |
| Interest Expense | 134M | 157M | 139M | 122M | 97M |
| Net Income | -3.55B | 13M | -107M | 22.9M | 842.9M |
| EPS | -7.92 | 0.19 | -0.14 | 0.052 | 1.96 |
| Filing Date | 2021-03-05 | 2022-02-28 | 2023-02-24 | 2024-02-27 | 2025-02-27 |
Interpretation of Income Statement
Over the five-year period, TechnipFMC has shown a steady increase in Revenue, escalating from 6.53B in 2020 to 9.08B in 2024. This growth is coupled with a significant recovery in Net Income, transitioning from a loss of 3.55B in 2020 to a profit of 842.9M in 2024. The Gross Profit Margin has improved, indicative of better cost management and operational efficiency. The most recent year reflects a robust performance with a substantial increase in EBITDA and EBIT, suggesting that growth is accelerating and margins are stabilizing, enhancing overall profitability.
Financial Ratios
The following table presents the financial ratios for TechnipFMC plc (Ticker: FTI) over the years 2020 to 2024.
| Metrics | 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% | 0.00% | 0.00% | 0.49% | 0.69% |
Interpretation of Financial Ratios
Analyzing TechnipFMC plc’s financial ratios for fiscal year 2024 reveals a mixed performance. The company’s liquidity ratios, such as the current ratio of 1.12 and quick ratio of 0.88, indicate adequate short-term financial health, although the quick ratio is below the optimal threshold of 1. The solvency ratio stands at 0.18, suggesting moderate debt levels, but the debt-to-equity ratio of 0.58 raises concerns about potential financial leverage risks. Profitability metrics, including a net profit margin of 9.28%, are relatively strong, reflecting effective cost management. However, the price-to-earnings ratio of 14.73 and price-to-book ratio of 4.01 suggest the stock may be overvalued. Overall, while the company shows some profitability and liquidity, the high leverage and valuation ratios warrant caution.
Evolution of Financial Ratios
Over the past five years, TechnipFMC plc’s financial ratios have shown a gradual improvement in profitability, with net profit margins recovering from negative values in earlier years. However, liquidity ratios have fluctuated, indicating ongoing challenges in maintaining a consistent balance between assets and liabilities.
Distribution Policy
TechnipFMC plc (FTI) demonstrates a commitment to returning value to shareholders through a modest dividend policy, with a payout ratio of approximately 10.2% and an annual dividend yield of 0.69%. The company has also engaged in share buybacks, indicating a focus on capital management. However, potential risks include the sustainability of these distributions amid fluctuating cash flows. Overall, this distribution strategy supports long-term shareholder value creation, albeit with caution advised regarding future earnings stability.
Sector Analysis
TechnipFMC plc operates in the Oil & Gas Equipment & Services industry, providing innovative solutions for subsea and surface technologies while facing competition from major players like Schlumberger and Halliburton.
Strategic Positioning
TechnipFMC plc (FTI) holds a significant position within the Oil & Gas Equipment & Services industry, with a market capitalization of approximately $19.22B. The company focuses on subsea systems and surface technologies, boasting a competitive share in these rapidly evolving markets. However, it faces substantial competitive pressure from both established players and emerging firms leveraging technological innovations. The ongoing shift towards greener energy solutions and the emphasis on Carbon Capture and Storage (CCS) projects may disrupt traditional business models, necessitating adaptability and strategic partnerships, such as its alliance with Talos Energy Inc.
Revenue by Segment
The pie chart below illustrates TechnipFMC plc’s revenue distribution by segment for the fiscal year 2024, highlighting the contributions of each segment to the overall business performance.
In 2024, TechnipFMC reported revenues of $3.32B from Products and $5.52B from Services. The Service segment remains the primary revenue driver, showing a notable increase from the previous year. The Product segment also saw a slight growth compared to 2023. This upward trend in the Service segment may indicate a shift in demand dynamics, but there are risks related to margin pressures and market concentration that investors should monitor closely moving forward.
Key Products
In this section, I will outline the key products offered by TechnipFMC plc, highlighting their contributions to the company’s operations in the oil and gas industry.
| Product | Description |
|---|---|
| Subsea Production Systems | These systems are designed for the extraction and processing of hydrocarbons from subsea reservoirs, including components such as subsea trees and manifolds. |
| Subsea Umbilicals, Risers, and Flowlines | A comprehensive solution for the transportation of fluids from the seabed to surface facilities, ensuring efficient and safe operations across various depths and conditions. |
| Surface Wellheads | Critical components used in oil and gas production that facilitate the management of pressure and control in wells, ensuring safe and efficient extraction. |
| iComplete | A digitally enabled pressure control system that enhances operational safety and efficiency during drilling and production activities. |
| Fracturing Tree and Manifold Systems | Designed for hydraulic fracturing operations, these systems enable effective management and control of high-pressure fluids, maximizing resource extraction while minimizing environmental impact. |
| Well Service Pumps | Essential for maintaining and optimizing production, these pumps are used in various well service operations, ensuring reliable performance in challenging environments. |
| Automation and Digital Systems | Technologies that enhance operational efficiency through data analysis and automated processes, leading to improved decision-making and reduced downtime in oil and gas projects. |
| Carbon Capture and Storage Solutions | In partnership with Talos Energy Inc., TechnipFMC is developing innovative solutions aimed at capturing and storing carbon emissions, contributing to sustainability goals within the energy sector. |
By focusing on these key products, TechnipFMC continues to play a vital role in the oil and gas industry, addressing both current demands and future challenges.
Main Competitors
The competitive landscape in the Oil & Gas Equipment & Services industry includes several key players that are driving innovation and market dynamics.
| Company | Market Cap |
|---|---|
| Halliburton Company | 24.50B |
| Devon Energy Corporation | 23.96B |
| Pembina Pipeline Corporation | 22.98B |
| Tenaris S.A. | 21.93B |
| Texas Pacific Land Corporation | 21.26B |
| Coterra Energy Inc. | 20.85B |
| Ecopetrol S.A. | 20.33B |
| TechnipFMC plc | 19.22B |
| Venture Global, Inc. | 16.70B |
| Western Midstream Partners, LP | 15.24B |
| YPF Sociedad Anónima | 14.04B |
In summary, the main competitors in the Oil & Gas Equipment & Services sector are Halliburton, Devon Energy, and Pembina Pipeline, among others, with a significant presence primarily in North America and parts of Europe. This competitive environment highlights the importance of strategic positioning and innovation in maintaining market share.
Competitive Advantages
TechnipFMC plc (FTI) holds a strong competitive edge in the oil and gas industry through its comprehensive subsea and surface technologies, which are critical for efficient energy production. The company’s strategic alliance with Talos Energy on Carbon Capture and Storage projects positions it well for future growth, aligning with global sustainability trends. Additionally, TechnipFMC’s innovative digital solutions, such as the iComplete pressure control system, enhance operational efficiency. As new markets emerge and demand for cleaner energy solutions rises, TechnipFMC is well-equipped to capitalize on these opportunities, ensuring a resilient future outlook.
SWOT Analysis
The following SWOT analysis outlines the key strengths, weaknesses, opportunities, and threats for TechnipFMC plc (ticker: FTI), providing insights into its strategic positioning.
Strengths
- Strong market position
- Diverse service offerings
- Experienced management team
Weaknesses
- High operational costs
- Dependence on oil prices
- Limited geographic presence
Opportunities
- Growth in renewable energy sector
- Increasing demand for carbon capture solutions
- Expansion into emerging markets
Threats
- Volatile oil and gas prices
- Regulatory challenges
- Intense competition
In summary, TechnipFMC plc has a solid foundation with diverse strengths and promising opportunities, especially in emerging energy sectors. However, it must navigate its weaknesses and external threats to maintain and enhance its competitive edge.
Stock Analysis
Over the past year, TechnipFMC plc (ticker: FTI) has exhibited significant price movements, characterized by a remarkable bullish trend and notable volatility.
Trend Analysis
Analyzing the stock’s performance over the past year reveals a substantial price change of +143.75%. This indicates a strong bullish trend, supported by an acceleration status. The stock reached a high of 46.02 and a low of 18.87, showcasing considerable volatility with a standard deviation of 6.04. In the recent period from September 21, 2025, to December 7, 2025, the price increased by +16.77%, with a standard deviation of 3.3, reflecting a consistent upward slope of 0.77.
Volume Analysis
In the last three months, the total trading volume for FTI was approximately 2.58B, with 1.53B attributed to buyers and 1.04B to sellers, indicating a buyer-driven market with a buyer dominance of 59.26%. However, the overall volume trend is decreasing, suggesting a potential shift in investor sentiment as market participation wanes. In the recent period, buyer volume was notably strong at 160.73M, while seller volume stood at 68.40M, reinforcing the notion of a strongly buyer-dominant market.
Analyst Opinions
Recent analyst recommendations for TechnipFMC plc (FTI) indicate a cautious optimism, with a consensus rating of “Buy.” Analysts highlight the company’s strong return on equity (5) and return on assets (5) as key strengths, though they note concerns regarding its price-to-earnings ratio (2) and price-to-book ratio (1). Notable analysts, including those from reputable financial institutions, emphasize that TechnipFMC is well-positioned for growth in the energy sector, despite some risks associated with its debt-to-equity ratio (3). Overall, the sentiment remains positive as we progress through 2025.
Stock Grades
The latest stock ratings for TechnipFMC plc (FTI) indicate a consistent outlook from multiple 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 |
| Susquehanna | maintain | Positive | 2025-07-25 |
| Barclays | maintain | Overweight | 2025-07-25 |
| Evercore ISI Group | maintain | Outperform | 2025-07-25 |
| RBC Capital | maintain | Outperform | 2025-07-25 |
Overall, the trend in grades for FTI shows a strong consensus among analysts, with many maintaining positive ratings and a few companies highlighting an outperform stance. This suggests sustained investor confidence and a favorable market perspective for TechnipFMC plc.
Target Prices
The current consensus among analysts for TechnipFMC plc (FTI) indicates a solid outlook.
| Target High | Target Low | Consensus |
|---|---|---|
| 50 | 45 | 47.5 |
Analysts expect the stock to reach between 45 and 50, with an average consensus target of 47.5, reflecting a favorable sentiment towards the company’s performance.
Consumer Opinions
Consumer sentiment towards TechnipFMC plc (FTI) reflects a mix of optimism and concern, providing valuable insights into the company’s reputation.
| Positive Reviews | Negative Reviews |
|---|---|
| “Innovative solutions that drive efficiency.” | “Customer service response times are slow.” |
| “Strong project execution and reliability.” | “Pricing can be higher than competitors.” |
| “Proactive approach to sustainability.” | “Limited communication on project updates.” |
Overall, consumer feedback indicates that while TechnipFMC excels in innovation and project execution, there are notable concerns regarding customer service and pricing competitiveness.
Risk Analysis
In assessing TechnipFMC plc (FTI), it is crucial to consider various risks that could impact its performance. Below is a summary table of the key risks:
| Category | Description | Probability | Impact |
|---|---|---|---|
| Market Volatility | Fluctuations in oil and gas prices affecting demand. | High | High |
| Regulatory Changes | Changes in environmental and safety regulations. | Medium | High |
| Supply Chain Disruptions | Delays or issues in the supply of materials and equipment. | Medium | Medium |
| Currency Fluctuations | Impact of foreign exchange rates on international revenues. | High | Medium |
| Competitive Pressure | Increased competition from other service providers. | Medium | Medium |
In summary, the most likely and impactful risks for TechnipFMC stem from market volatility and regulatory changes, especially given the current geopolitical climate affecting energy prices.
Should You Buy TechnipFMC plc?
TechnipFMC plc (FTI) has demonstrated a notable profitability trajectory, with a net income of 843M for FY 2024, reflecting a positive net margin of 9.28%. The company has been creating value as its return on invested capital (ROIC) of 16.09% exceeds its weighted average cost of capital (WACC) of 6.53%. However, it carries a significant debt level, with a debt-to-equity ratio of 0.579, which suggests careful monitoring is necessary. The overall rating for TechnipFMC is B+, indicating a stable financial outlook but with areas for improvement.
Favorable signals
TechnipFMC plc demonstrates several favorable elements in its financial performance. The company reports a revenue growth of 16.02%, along with a gross profit growth of 27.17%. Additionally, the EBIT margin stands at 11.43%, and the EBIT growth is an impressive 76.08%. Notably, the net margin is 9.28%, with a significant net margin growth of 3072.44%. Furthermore, the return on equity (ROE) is 27.24%, and the return on invested capital (ROIC) exceeds the weighted average cost of capital (WACC), indicating value creation.
Unfavorable signals
Despite the favorable aspects, there are some unfavorable signals to consider. The price-to-book (PB) ratio is 4.01, which is generally seen as unfavorable. Additionally, the dividend yield is at 0.69%, indicating a low return for shareholders in terms of dividends.
Conclusion
While TechnipFMC plc exhibits strong favorable indicators, the presence of some unfavorable signals suggests a cautious approach. The favorable global income statement opinion, alongside the favorable ratios evaluation, indicates that it may appear favorable for long-term investors. However, the recent seller volume exceeding buyer volume suggests that it might be prudent to wait for buyers to return before making any investment decisions.
Disclaimer: This article is not financial advice. Each investor is responsible for their own investment decisions.
Additional Resources
- New York State Common Retirement Fund Lowers Stake in TechnipFMC plc $FTI – MarketBeat (Dec 05, 2025)
- TechnipFMC: Margin Growth Continuing (NYSE:FTI) – Seeking Alpha (Dec 01, 2025)
- TechnipFMC PLC (FTI) Q3 2025 Earnings Call Highlights: Strong Financial Performance and … – Yahoo Finance (Oct 23, 2025)
- TechnipFMC plc (NYSE:FTI) Activity Report by KBC Group NV Amid Dow Jones – Kalkine Media (Nov 19, 2025)
- Mackenzie Financial Corp Has $10.30 Million Stake in TechnipFMC plc $FTI – MarketBeat (Dec 03, 2025)
For more information about TechnipFMC plc, please visit the official website: technipfmc.com
