Share Repurchase Authorization Jumps to $2.3 Billion as Confidence in Growth Deepens
TechnipFMC’s third-quarter 2025 results show a company executing on all cylinders, with both the business and shareholder returns set for growth. The headline move this quarter is a substantial increase to its share repurchase authorization: the board now allows up to $2.3 billion in buybacks—equal to nearly 16% of shares outstanding at the recent closing price. With more than $1.6 billion already returned via buybacks and dividends since mid-2022, management is underscoring its belief in the company’s future trajectory and cash-generating ability.
Subsea Drives Profitable Growth and Large Backlog Expansion
The Subsea segment continues to be the powerhouse, delivering quarterly revenue of $2.32 billion—up 4.6% from Q2 and 14.4% year-over-year. Operating profit reached $401.3 million, while adjusted EBITDA margin remained strong at 21.8%. These numbers are supported by high-value contract awards across key regions: notably, Petrobras contracts in Brazil and ExxonMobil’s Hammerhead project in Guyana.
Order momentum remained solid with $2.4 billion of inbound Subsea awards, maintaining a book-to-bill ratio of 1.0x. Backlog reached $16.0 billion—a 16.8% jump from a year ago—reinforcing visibility into future revenues.
| Key Subsea Financials | Q3 2025 | Q2 2025 | Q3 2024 | Y/Y Change |
|---|---|---|---|---|
| Revenue ($M) | 2,319.2 | 2,216.3 | 2,028.1 | +14.4% |
| Adjusted EBITDA ($M) | 505.6 | 482.9 | 371.0 | +36.3% |
| Adjusted EBITDA Margin | 21.8% | 21.8% | 18.3% | +350 bps |
| Backlog ($M) | 16,038.2 | 15,810.0 | 13,732.1 | +16.8% |
Strong Cash Generation and Upgraded Guidance
TechnipFMC posted free cash flow of $447.8 million in Q3, part of an upward revision to full-year 2025 guidance. Management now targets $1.3–1.45 billion in free cash flow for the year—well above the prior $1.0–1.15 billion range. This comes alongside $525 million in quarterly cash flow from operations, fueling both investment and shareholder returns. Net cash rose to $438.6 million at quarter-end as the company continued debt repayment.
The following table summarizes key financial metrics for the quarter:
| Financial Metric | Q3 2025 | Q2 2025 | Q3 2024 | Y/Y Change |
|---|---|---|---|---|
| Total Revenue ($M) | 2,647.3 | 2,534.7 | 2,348.4 | +12.7% |
| Adjusted Net Income ($M) | 312.1 | 285.5 | 280.5 | +11.3% |
| Free Cash Flow ($M) | 447.8 | 337.8 | 158.7 | +182.3% |
Business Units: Surface Technologies Rebounds
The Surface Technologies unit also improved sequentially, with operating profit jumping 57.3% versus Q2 thanks to lower restructuring costs and better international activity. EBITDA margins increased to 16.4%. However, inbound orders declined and backlog dropped, primarily reflecting lower North American activity.
Strategic Outlook: Robust Order Book and Focus on Capital Returns
CEO Doug Pferdehirt emphasized confidence in both demand and execution, highlighting 15 out of 16 quarters with a book-to-bill ratio above one. Innovations like Subsea 2.0® and integrated project delivery models help secure a greater share of the expanding offshore energy market. The company now forecasts Subsea orders above $10 billion for both 2025 and 2026, supporting high single-digit revenue growth and rising margins.
Key Guidance and 2026 Subsea Preview
| 2025 Guidance | Subsea | Surface Technologies |
|---|---|---|
| Revenue | $8.4–8.8B | $1.2–1.35B |
| Adjusted EBITDA Margin | 19–20% | 16–16.5% |
| Free Cash Flow (Total) | $1.3–1.45B | |
Looking to 2026, the Subsea segment alone is expected to generate $9.1–9.5 billion in revenue with adjusted EBITDA margins in the 20.5–22% range—setting the stage for continued value creation.
What’s Next for Investors?
TechnipFMC’s commitment to both operational discipline and returning cash to shareholders stands out, especially with its beefed-up buyback authorization and upgraded guidance. The mix of solid backlog, project wins in fast-growing markets, and consistent free cash flow points to strong fundamentals—even as sector volatility remains. Investors may want to watch future Subsea award announcements, quarterly execution on margins, and capital return actions to gauge the company’s ongoing momentum.
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