Recommendation: Buy
| Entry Date | Symbol | Recommendation | Entry Price (USD) | Target 1 (USD) | Target 2 (USD) | Holding Duration | Potential Upside* |
|---|---|---|---|---|---|---|---|
| 3 Mar, 25 | FTI | Buy | USD 29.44 | USD 31.0 | USD 32.43 | 2 days | 10.2% |
*Potential Upside (%) indicates the expected percentage increase from the Entry Price to the Target 2 Price.
Data Powered by EOD Historical Data (“EODHD”).
TechnipFMC plc engages in the oil and gas projects, technologies, and systems and services businesses in Europe, Central Asia, North and Latin America, the Asia Pacific, Africa, and the Middle East. The Subsea segment engages in the design, engineering, procurement, manufacturing, fabrication, installation, and life of field services for subsea systems, subsea field infrastructure, and subsea pipe systems used in oil and gas production and transportation. It provides subsea production and flexible pipe; subsea umbilicals, risers, and flowlines; vessels; and Subsea Studio for optimizing the development, execution, and operation of current and future subsea fields. This segment also offers well and asset services. The Surface Technologies segment designs, manufactures, and services products and systems used in land and shallow water exploration and production of crude oil and natural gas. This segment offers surface wellheads and production trees systems; iComplete, a pressure control system; fracturing tree and manifold systems; pressure pumping; safety and integrity systems, multiphase meter modules, in-line separation and processing systems, and standard pumps; well control and integrity systems, flowback and well testing services; skid systems; digital systems; and flow measurement and automation solutions. It also offers planning, testing and installation, commissioning, operations, replacement and upgrade, maintenance, storage, preservation, intervention, integrity, decommissioning, and abandonment; and supplies flexible lines and flowline products and services. TechnipFMC plc has a strategic alliance with Talos Energy Inc. to develop carbon transportation and storage services. The company was founded in 1884 and is based in Newcastle Upon Tyne, the United Kingdom.
Strong Revenue & Profit Growth – TechnipFMC reported a 16.1% YoY increase in full-year revenue to $9.08 billion and a 1,400% YoY surge in net income to $842.9 million, reflecting significant profitability improvements.
Record Subsea Orders & Backlog – Subsea orders grew 112.5% YoY in Q4 to $2.7 billion, pushing the total backlog to $14.4 billion (a 9% YoY increase), ensuring strong future revenue visibility.
Weaker North American Surface Technologies Market – While the Middle East segment performed well, North American activity in Surface Technologies declined, impacting overall segment growth.
Increasing Shareholder Distributions May Limit Reinvestment – The company returned $486 million to shareholders in 2024 (nearly double from 2023) and plans to grow distributions by 30% in 2025, which, while positive for investors, may reduce funds available for future expansion or R&D investments.
Key investment risks for TechnipFMC include potential volatility in subsea order cycles, exposure to fluctuations in oil and gas prices, geopolitical risks affecting global operations, and the challenge of maintaining profitability amid rising shareholder distributions and evolving industry regulations.
| Entry Price | Support* | Target 1 | Target 2 |
|---|---|---|---|
| 29.44 | 27.5 | 31.0 | 32.43 |
Data Source: REFINITIV, Analysis: StockNextt
*Support can be considered as an indicative stop-loss, and if prices move below that level on closing basis individuals may evaluate exiting the position depending on their risk appetite, previous holdings, and other factors considered. The support and resistance levels may need to be re-evaluated within 4-6 weeks’ time frame depending on the stock price movements from the date of recommendation on the stock.
Financial Performance: TechnipFMC reported strong financial results for Q4 and the full year 2024, with revenue reaching $2.37 billion in Q4 (up 13.9% YoY) and $9.08 billion for the full year (up 16.1% YoY). Net income surged significantly, reaching $224.7 million in Q4 (up 324% YoY) and $842.9 million for the year (up 1,400% YoY). Adjusted EBITDA for Q4 was $351 million, with a 14.8% margin, while the full-year adjusted EBITDA stood at $1.35 billion (14.9% margin), representing a 65% YoY increase.
Operational Highlights: The subsea segment continued to perform exceptionally well, with Q4 orders totaling $2.7 billion (up 112.5% YoY) and full-year orders reaching $10.4 billion, marking the fourth consecutive year of book-to-bill exceeding 1. The company's backlog grew to $14.4 billion, a 9% increase from the previous year. Major contract wins included the TotalEnergies GranMorgu iEPCI™ project in Suriname (over $1 billion) and Shell’s Bonga North project in Nigeria (valued between $250M–$500M). While Surface Technologies saw weaker activity in North America, strong growth was recorded in the Middle East.
Cash Flow & Shareholder Returns: TechnipFMC delivered robust cash flow performance, with Q4 free cash flow of $453 million and full-year free cash flow of $679 million, a 45% YoY increase. The company significantly increased shareholder distributions, returning $486 million in 2024—nearly double the amount in 2023. Looking ahead, TechnipFMC aims to grow shareholder distributions by at least 30% in 2025, further demonstrating its commitment to enhancing shareholder value.
2025 Outlook: The company expects another strong year in 2025, with subsea inbound orders anticipated to exceed $10 billion, reinforcing its market leadership. A robust backlog and continued demand visibility through the end of the decade position TechnipFMC for sustained growth. The company is also expanding into the floating offshore wind market through a strategic collaboration with Prysmian, further diversifying its portfolio and capitalizing on the energy transition.
Considering recent key business, financial updates, current trading levels, and key business risks, a ‘Buy’ recommendation has been given on TechnipFMC plc (NYSE: FTI) at the closing market price of USD 29.44, as on February 28, 2025.
Data Powered by EOD Historical Data (“EODHD”).
Sector: Energy Industry: Oil & Gas Equipment & Services
| Company | Change (USD) | Price (USD) | Trailing PE (x) | Forward PE (x) | Price Sales TTM (x) | Price to Book Value (x) | Enterprise Value to Revenue (x) | Enterprise Value to EBITDA (x) |
|---|---|---|---|---|---|---|---|---|
| FTI TechnipFMC PLC |
0.54 1.70% | 32.23 | - | 17.70 | 1.19 | 2.89 | 1.39 | 17.14 |
| SLB Schlumberger NV |
0.53 1.27% | 42.33 | 14.01 | 12.05 | 1.70 | 2.86 | 1.94 | 8.58 |
| BKR Baker Hughes Co |
0.50 1.14% | 44.45 | 18.11 | 16.45 | 1.30 | 2.15 | 1.43 | 9.19 |
| HAL Halliburton Company |
0.17 0.69% | 25.55 | 12.44 | 10.36 | 1.42 | 3.54 | 1.72 | 8.38 |
| TS Tenaris SA ADR |
0.27 0.69% | 39.38 | 5.88 | 7.97 | 1.37 | 1.24 | 1.19 | 3.33 |
Data Powered by EOD Historical Data (“EODHD”).
Related Risks: This report may be looked at from high-risk perspective and recommendations are provided are for a short duration. Recommendations provided in this report are solely based on technical parameters, and the fundamental performance of the stocks has not been considered in the decision-making process. Other factors which could impact the stock prices include market risks, regulatory risks, interest rates risks, currency risks, social and political instability risks etc.
Note 1: Past performance is not a reliable indicator of future performance.
Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is February 28,2025. The reference data in this report has been partly sourced from REFINITIV.
Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.
Target: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Target 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Target 2 may act as the crucial resistance level for the stock.
Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices.
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