TechnipFMC: A Different Kind of Energy Stock
An Energy Business Built for the Long Cycle. Why TechnipFMC’s improving fundamentals and disciplined execution are starting to matter more than oil prices
TechnipFMC FTI 0.00%↑ sits at a quiet intersection in the energy market. It is not a speculative exploration story, and it is not a short-cycle services trade. It is a long-cycle infrastructure business tied to offshore investment decisions that tend to be made slowly, executed carefully, and rewarded over time.
After several years of balance sheet repair, margin recovery, and improving capital discipline, the company now looks structurally different from its prior cycles. Revenue is growing, profitability has inflected, cash flow is strong, and capital returns are real.
Key Takeaways
TechnipFMC has transitioned into a higher-quality phase of the offshore cycle, with rising revenue, expanding margins, and strong free cash flow.
Balance sheet risk has fallen meaningfully, giving management flexibility to return capital while continuing to invest.
The long-term trend remains constructive, but the stock is now in a digestion phase rather than an easy momentum run.
Current price behavior favors patience and level-driven execution rather than chasing strength.
If the broader energy and equity backdrop remains supportive, TechnipFMC offers a clean risk-reward setup for medium-term investors.
Check out our last trade plan updates for this week here:
Company Overview
TechnipFMC FTI 0.00%↑ is an offshore energy services company with its economic engine concentrated in Subsea.
Founded in 2017 as a merger between the U.S.’ FMC Technologies and France’s Technip, FTI has activities in every corner of the globe.
It designs, manufactures, and installs the equipment that sits on the seabed and connects reservoirs to production systems (trees, manifolds, umbilicals, flowlines, risers), and then supports those assets over their life. The differentiator that matters to investors is execution: Subsea projects are complex, long-cycle, and contract-driven, so the winners are the firms that can deliver on schedule, manage risk, and keep margins intact when activity ramps.
The business is geared to a multi-year offshore cycle where operators prioritize project economics and production durability. That tends to favor subsea tie-backs and brownfield work when oil prices are choppy, and larger developments when confidence returns.
For FTI 0.00%↑, the model is behaving like a scaled industrial with operating leverage, not a volatile services name: revenue is rising, profitability has inflected meaningfully, and cash generation is strong enough to fund both deleveraging and buybacks.
FTI 0.00%↑ is positioned where the offshore value chain is most execution-sensitive (Subsea). That can be a disadvantage in weak cycles, but when activity is stable-to-improving, it’s exactly where operating leverage and rerating potential show up fastest. Also, with a focus on reduced emissions and renewable efforts, FTI is positioning itself for long-term growth, relevance, and reduced volatility - also making it an interesting prospect for ESG and clean energy investors.
Fundamental Analysis
Revenue and earnings trends
FTI 0.00%↑ has transitioned into a steady growth phase tied to the offshore project cycle. TTM revenue stands at $9.78 B, up from $9.08 B in 2024, $7.82 B in 2023, and $6.40 B in 2021, implying a low-double-digit CAGR over the past four years. More importantly, quarterly revenue has been sequentially higher through 2025, confirming momentum rather than a one-off recovery.
Operating income has inflected sharply. After generating just $101 M in 2021, operating profit reached $983 M in 2024 and now sits at $1.29 B TTM. Net income has followed the same path, reaching $946 M TTM, reflecting both higher activity and meaningful operating leverage.
FTI is no longer just benefiting from a cyclical rebound. Earnings quality has improved to the point where growth is translating cleanly into bottom-line profitability.
Margins and profitability
TTM gross profit is $2.05 B on $9.78 B of revenue, implying a ~21% gross margin. While this is not a software-style margin profile, it is structurally strong for an offshore services company and consistent with disciplined project execution.
Operating leverage is the key driver. Operating expenses have grown modestly relative to revenue, allowing operating margins to expand to ~13% TTM, up materially from mid-single-digit levels earlier in the cycle. EBITDA has climbed to $1.73 B TTM, representing an ~18% EBITDA margin, which places $FTI firmly in the upper tier of its peer group.
FTI increasingly behaves like a scaled industrial platform rather than a volatile services name. Margin expansion is being earned through execution and mix, not financial engineering, which supports a more durable valuation framework.
Balance sheet health and leverage
The balance sheet has strengthened materially as profitability and cash generation improved. As of 9/30/25:
Total assets: $10.25 B
Total liabilities: $6.88 B
Common equity: $3.33 B
Total debt: $1.34 B, down from $2.83 B in 2021
Tangible book value: $2.85 B
Zero net debt
Leverage is modest, with debt representing ~7% of total capital, one of the lowest ratios among offshore and engineering peers. Share count has declined from ~425 M (9/30/24) to ~405 M (9/30/25), reflecting a credible capital return strategy rather than symbolic buybacks.
Balance sheet risk is no longer a gating factor for the thesis. FTI now has the flexibility to sustain investment, return capital, and absorb normal cycle volatility without financial stress.
Cash flow quality and guidance
On a cash basis, the improvement is even clearer than on earnings.
TTM operating cash flow is $1.89 B, up from $961 M in 2024 and $693 M in 2023. Capital intensity remains manageable, with TTM capex of $349 M, resulting in $1.54 B of free cash flow TTM.
That equates to a ~16% free cash flow margin, a very strong outcome for this segment of the energy services market. Importantly, cash is being used productively: $527 M of debt repayment and $820 M of share repurchases over the last four quarters.
Free cash flow is now recurring, not episodic. As long as offshore project activity remains stable, FTI’s cash generation supports continued deleveraging, buybacks, and EPS compounding.
Valuation vs peers
At current levels, the market values FTI at roughly:
P/E (TTM): ~18.8x
Forward P/E: ~19x
EV/EBITDA: ~10.5x
Price / Sales: ~1.9x
Relative to peers, FTI 0.00%↑ trades at a discount to higher-multiple competitors. Given FTI’s superior revenue growth positioning and stronger balance sheet, the current multiples look fair rather than stretched.
The valuation reflects confidence in execution but leaves room for upside if margins hold and cash returns remain disciplined.
Fundamental takeaway:
FTI 0.00%↑ has moved decisively into a higher-quality phase of its cycle. Revenue growth is consistent, margins are expanding, cash flow is strong, leverage is falling, and capital returns are real. Valuation sits in a reasonable range versus peers, setting up a clean risk-reward profile where continued execution, not macro heroics, drives further upside.
Technical Analysis
Weekly chart
FTI 0.00%↑ is in a mature uptrend on the higher timeframe, but it is transitioning from impulse to digest. Price is holding around $45 after a strong 2023-2025 advance, and it is still comfortably above the rising 20-week EMA (~$41.6), with the 50/100/200-week EMAs much lower (~$36.7 / $31.6 / $25.7). That MA stack keeps the long-term trend structurally bullish.
Momentum is still constructive. Weekly RSI is elevated (mid-to-high 60s) rather than rolling into bearish divergence, and MACD remains positive. The key message: trend is intact, but the market is paying a higher confirmation premium up here. Pullbacks are more likely to be bought if they hold above the weekly trend band rather than slicing through it.
Weekly structure levels matter more now. The first real support line sits in the low-$40s. As long as that zone holds, this looks like a small digestion inside a broader uptrend, with upside still on the table.
Daily chart
On the daily, FTI is working through a classic consolidation after a strong push. Price is holding above the rising 20-day EMA (~$44.9) and above the 50-day (~$43.4), while the 100-day (~$41.0) and 200-day (~$37.5) sit much lower. That keeps the intermediate trend bullish, but with a clear sign that the easy phase is over and continuation now depends on holding the short-term trend band.
Daily momentum is neutral-to-positive rather than overheated. RSI is in the mid-50s (not extended), while MACD has cooled from peak momentum and is drifting slightly. This is what healthy trends often do before the next push: compress, hold moving averages, then expand again once supply is absorbed.
2H and intraday structure
The intraday charts show the same story. Price is holding around $45.2–$45.5, repeatedly rejecting and re-basing rather than slipping. That is a sign of absorption, not distribution, but it also means the trade is now about levels, not vibes.
Key micro supports are stacked tightly: ~$45.2 down into ~$44.9–$44.7, with the real shelf around ~$44.4. If that shelf breaks, the structure shifts from consolidation to correction, and you should expect price to hunt the next demand pocket rather than immediately bounce.
On the upside, the next expansion levels are well defined: first through ~$46.4–$46.9, then ~$47.6–$48.4, with larger swing targets above $50 if momentum returns.
Across timeframes: FTI remains trend-up on weekly/daily, and the current action looks like a pause that can resolve higher as long as the mid-$44s holds. A decisive loss of ~$44.4 would be the first signal that the consolidation is turning into a deeper reset.
