TechnipFMC Q3 2022 Earnings Report
Key Takeaways
TechnipFMC announced third quarter 2022 results, with total company revenue of $1.733 billion. Subsea inbound orders of $1.4 billion support full-year outlook for orders to approach $7 billion. Surface Technologies inbound orders of $449 million driven by Middle East. Cash provided by operating activities of $212 million and free cash flow of $181 million. The company repurchased $50 million of ordinary shares following $400 million authorization in July.
Subsea inbound orders reached $1.4 billion, supporting the full-year outlook for orders approaching $7 billion.
Surface Technologies inbound orders totaled $449 million, driven by the Middle East, with a book-to-bill ratio of 1.4.
Cash provided by operating activities was $212 million, with free cash flow of $181 million.
The company repurchased $50 million of ordinary shares following a $400 million authorization in July.
TechnipFMC
TechnipFMC
TechnipFMC Revenue by Segment
Forward Guidance
The Company’s full-year guidance for 2022 was updated. Capital expenditures are expected to be approximately $180 million. All segment guidance assumes no further material degradation from COVID-19-related impacts.
Positive Outlook
- Subsea revenue is expected to be in a range of $5.2 - 5.6 billion.
- Subsea EBITDA margin is expected to be in a range of 11 - 12% (excluding charges and credits)
- Surface Technologies revenue is expected to be in a range of $1,150 - 1,300 million.
- Surface Technologies EBITDA margin is expected to be in a range of 11 - 13% (excluding charges and credits)
- Free cash flow is expected to be $100 - 250 million.
Challenges Ahead
- Corporate expense, net is expected to be $100 - 110 million (includes depreciation and amortization of ~$5 million)
- Net interest expense is expected to be $105 - 115 million
- Tax provision, as reported is expected to be $100 - 110 million
- Capital expenditures are expected to be approximately $180 million.
- All segment guidance assumes no further material degradation from COVID-19-related impacts.
Revenue & Expenses
Visualization of income flow from segment revenue to net income