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Dec 31, 2022

TechnipFMC Q4 2022 Earnings Report

TechnipFMC reported mixed results for Q4 2022, with revenue declining sequentially but increasing year-over-year. The company experienced a loss from continuing operations but saw growth in inbound orders and backlog. Financial guidance for 2023 was initiated, and the intermediate-term outlook for 2025 was updated.

Key Takeaways

TechnipFMC's Q4 2022 revenue was $1,694.4 million. The company's loss from continuing operations was $26.7 million, or $0.06 per diluted share. Adjusted loss from continuing operations was $20.7 million, or $0.05 per diluted share. The company's inbound orders were $1,842.5 million, and the ending backlog was $9,353.0 million.

Subsea inbound orders reached $1.5 billion, with full-year orders growing 36% to $6.7 billion compared to 2021.

Total Company backlog increased 22% year-over-year to $9.4 billion.

Cash flow from operations was $566 million, resulting in free cash flow of $503 million for the quarter.

Financial guidance for 2023 was initiated, and the intermediate-term outlook for 2025 was updated.

Total Revenue
$1.69B
Previous year: $1.52B
+11.2%
EPS
-$0.05
Previous year: -$0.12
-58.3%
Inbound Orders
$1.84B
Gross Profit
$29.1M
Previous year: -$35.8M
-181.3%
Cash and Equivalents
$1.06B
Previous year: $1.33B
-20.4%
Free Cash Flow
$503M
Previous year: $423M
+18.9%
Total Assets
$9.44B
Previous year: $10B
-5.7%

TechnipFMC

TechnipFMC

TechnipFMC Revenue by Segment

Forward Guidance

TechnipFMC anticipates revenue growth of approximately 12% to $7.5 billion and adjusted EBITDA to increase to approximately $870 million in 2023. The company expects $25 billion of Subsea inbound for the company from 2023 through 2025 and revised Subsea forecast for 2025 demonstrates a 650 basis point expansion in adjusted EBITDA margin to 18% and adjusted EBITDA of approximately $1.4 billion.

Positive Outlook

  • Total Company revenue growth of approximately 12% to $7.5 billion.
  • Adjusted EBITDA expected to increase to approximately $870 million.
  • $25 billion of Subsea inbound for the company from 2023 through 2025.
  • 650 basis point expansion in adjusted EBITDA margin to 18% for Subsea in 2025.
  • Adjusted EBITDA of approximately $1.4 billion for Subsea in 2025.

Challenges Ahead

  • Unpredictability of individual components of the most directly comparable GAAP financial measure.
  • Variability of items excluded from each such measure.
  • Potential significant and unpredictable impact on future financial results.
  • Risks and uncertainties associated with forward-looking statements.
  • Assumptions that could cause actual results to differ materially from historical experience.

Revenue & Expenses

Visualization of income flow from segment revenue to net income