NYSE$FTI

TechnipFMC Plc · Q2 2020 earnings

Q2 2020 earnings · · Investor relations

Briefing

TechnipFMC reported strong execution in a challenging environment, maintained a resilient backlog, and demonstrated increased net liquidity.

TechnipFMC announced second quarter 2020 results, highlighting strong execution amidst a challenging environment. The company's resilient backlog stood at $20.6 billion, with $14.9 billion scheduled for 2021 and beyond. Net liquidity increased sequentially by $1.2 billion to $6.8 billion. The company is on track to deliver targeted cost savings exceeding $350 million by year-end and has updated financial guidance for all segments, while also initiating a free cash flow outlook.

  • Strong execution despite the challenging environment in the quarter
  • Resilient backlog of $20.6 billion; $14.9 billion scheduled for 2021 and beyond
  • Net liquidity of $6.8 billion, an increase of $1.2 billion sequentially
  • On track to deliver targeted cost savings that exceed $350 million by year-end

Headline financials

Total Revenue

$3.16B

Previous: $3.43B-8.0%
EPS (adj)

$0.09

Previous: $0.39-76.9%
Adjusted EBITDA

$241M

No prior period
Adjusted EBITDA Margin

7.6%

No prior period
Inbound Orders

$1.53B

No prior period
Order Backlog

$20.6B

No prior period
Capital Expenditures

-$178M

Previous: -$271M+34.3%
Free Cash Flow

-$166M

Previous: -$174M+4.3%
Net Income

$11.7M

Previous: $97M-87.9%
Operating Income

$142M

Previous: $394M-63.9%
Gross Profit

$3.16B

Previous: $3.43B-8.0%
Cash & Equivalents

$4.81B

Previous: $4.62B+4.1%
Total Assets

$19.6B

Previous: $25.5B-23.2%

Revenue & EPS history

TechnipFMC · Revenue · Quarterly

$3.16B

Q2 2020-8%vs Q2 2019
Beat estimate in 4 of 16 quarters(25%)
ActualEstimate

Revenue by segment

TechnipFMC · $1.62B total across 2 segments · Q2 2020

  • Subsea
    $1.38B
  • Surface Technologies
    $242M

Forward guidance

TechnipFMC has increased visibility and confidence in their full-year guidance for all business segments, supported by the acceleration of business transformation initiatives.

Tailwinds

  • Subsea revenue in a range of $5.3 - 5.6 billion
  • Subsea EBITDA margin at least 8.5% (excluding charges and credits)
  • Technip Energies revenue in a range of $6.3 - 6.8 billion
  • Technip Energies EBITDA margin at least 10% (excluding charges and credits)
  • Surface Technologies revenue in a range of $950 - 1,150 million

Headwinds

  • Corporate expense, net $130 - 150 million
  • Net interest expense $80 - 90 million (excluding the impact of revaluation of partners’ mandatorily redeemable financial liability)
  • Tax provision, as reported $80 - 90 million
  • Capital expenditures approximately $300 million
  • Free cash flow $0 - 150 million (cash flow from operations less capital expenditures)

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2020

Historical avgQ2 2020

+2.1%

Avg return

Earnings day

+2.3%

Avg return

5 days after

+1.4%

Avg return

30 days after

69%

44 / 64 earnings

Positive

+19.0%

Q4 2020

Best reaction

-12.1%

Q3 2019

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+0.3%-2.5%-11.1%
Q4 2025-0.8%-2.5%-11.1%
Q3 2025+9.1%+9.7%+17.7%
Q2 2025+1.7%-0.5%+13.8%
Q1 2025+9.9%+15.1%+18.6%
Q3 2024+5.2%+3.7%+22.5%
Q2 2024+5.8%+6.3%-2.2%
Q1 2024+3.4%-0.4%+0.5%
Q4 2023+6.2%+8.4%+24.7%
Q3 2023+8.4%+8.0%+6.9%
Q2 2023-1.2%-4.5%-3.4%
Q1 2023+6.9%+0.3%+8.7%
Q4 2022+15.1%+15.7%-5.4%
Q3 2022-2.5%-0.8%+13.3%
Q2 2022+15.1%+27.2%+34.7%
Q1 2022-0.1%-6.7%+13.2%
Q4 2021+3.1%+6.0%+21.8%
Q3 2021-4.5%-0.4%-19.9%
Q2 2021-2.9%-0.9%-17.0%
Q1 2021+12.2%+5.0%+23.0%
Q4 2020+19.0%+17.9%+12.6%
Q3 2020-5.7%-16.2%+13.5%
Q2 2020+6.5%+7.0%+3.6%
Q1 2020+2.4%+2.0%-4.2%
Q4 2019+0.2%-1.2%-53.4%
Q3 2019-12.1%-11.0%-18.2%
Q2 2019+7.0%+7.7%-11.7%
Q1 2019+0.8%-0.8%-11.2%
Q4 2018-5.5%-4.0%-5.4%
Q3 2018-4.1%-8.1%-19.7%
Q2 2018+4.1%+11.3%+1.1%
Q1 2018-3.2%-2.9%-0.3%
Q4 2017+4.0%+3.1%+0.0%
Q3 2017+4.8%+6.6%+6.2%
Q2 2017+4.1%+3.6%-6.5%
Q1 2017-6.0%-6.4%-9.5%
Q4 2016+0.4%+0.9%-4.8%
Q3 2016+5.5%+4.0%+10.0%
Q2 2016-0.8%-7.9%+5.2%
Q1 2016+5.2%
Q4 2015+8.7%
Q3 2015-3.2%
Q2 2015-9.7%
Q1 2015+2.7%
Q4 2014+5.2%
Q3 2014+1.9%
Q2 2014+3.8%
Q1 2014+4.4%
Q4 2013-2.1%
Q3 2013-9.0%
Q2 2013-2.2%
Q1 2013+5.4%
Q4 2012+6.6%
Q3 2012+1.4%
Q2 2012+2.4%
Q1 2012+0.2%
Q4 2011+0.2%
Q3 2011-7.2%
Q2 2011+0.9%
Q1 2011+2.1%
Q4 2010-0.6%
Q3 2010+0.6%
Q2 2010+3.4%
Q1 2010+1.1%

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