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Dec 31, 2023
TechnipFMC Q4 2023 Earnings Report
TechnipFMC reported strong Q4 2023 results, marked by a significant increase in Subsea inbound orders and overall backlog.
Key Takeaways
TechnipFMC announced strong Q4 2023 results, with revenue of $2,077.7 million and income of $53 million. The company's Subsea inbound orders reached $1.3 billion, contributing to a total company backlog of $13.2 billion, a 41% increase year-over-year. Cash flow from operations was $701 million, with free cash flow at $630 million.
Subsea inbound orders totaled $1.3 billion; full-year orders grew 45% to $9.7 billion compared to 2022.
Total Company backlog increased 41% year-over-year to $13.2 billion.
Cash flow from operations reached $701 million, with free cash flow at $630 million.
Shareholder distributions totaled $77 million for the quarter and $249 million for the full year.
TechnipFMC
TechnipFMC
TechnipFMC Revenue by Segment
Revenue by Segment
Subsea Revenue
CapyFin.comSurface Technologies Revenue
CapyFin.com Forward Guidance
TechnipFMC provided full-year 2024 financial guidance, including revenue and Adjusted EBITDA margin ranges for both Subsea and Surface Technologies segments. The company anticipates revenue between $7.2 - 7.6 billion for Subsea and $1.2 - 1.35 billion for Surface Technologies. Adjusted EBITDA margin is expected to be in the range of 15.5 - 16.5% for Subsea and 13 - 15% for Surface Technologies. Corporate expense, net, is projected to be $115 - 125 million, net interest expense $70 - 80 million, tax provision $280 - 290 million, capital expenditures approximately $275 million and free cash flow $350 - 500 million.
Positive Outlook
- Subsea revenue is expected to be in the range of $7.2 - 7.6 billion.
- Subsea adjusted EBITDA margin is expected to be in the range of 15.5 - 16.5%.
- Surface Technologies revenue is expected to be in the range of $1.2 - 1.35 billion.
- Surface Technologies adjusted EBITDA margin is expected to be in the range of 13 - 15%.
- Free cash flow is projected to be $350 - 500 million.
Challenges Ahead
- Corporate expense, net, is projected to be $115 - 125 million.
- Net interest expense is projected to be $70 - 80 million.
- Tax provision is projected to be $280 - 290 million.
- Capital expenditures are expected to be approximately $275 million.
- Free cash flow includes payment for legal settlement of ~$170 million.
Revenue & Expenses
Visualization of income flow from segment revenue to net income