TechnipFMC's Q1 Earnings & Revenues Miss Estimates, Rise Y/Y

Core Insights - TechnipFMC plc reported first-quarter 2025 adjusted earnings of 33 cents per share, missing the Zacks Consensus Estimate of 36 cents, primarily due to a 4.8% year-over-year increase in costs and expenses, although the earnings improved from 22 cents in the same quarter last year driven by better performance in the Subsea segment [1] - The company's revenues of $2.2 billion also missed the Zacks Consensus Estimate by 1.1$2 billion in the year-ago quarter [1] Financial Performance - Adjusted EBITDA for the Subsea unit was $334.9 million, exceeding the Zacks Consensus Estimate of$331 million, while the Surface Technologies unit's adjusted EBITDA was $46.6 million, beating the consensus mark of$41.94 million [2] - First-quarter inbound orders increased by 11.3% year-over-year to $3.1 billion, with the order backlog totaling$15.8 billion as of March-end, up 17.2% from the previous year [2] Segment Analysis - Subsea segment revenues totaled $1.9 billion, up 11.6$1.7 billion in the year-ago quarter, driven by higher project activity in Asia Pacific and Brazil, although it missed projections by 5.3% [4] - Surface Technologies segment recorded revenues of $297.4 million, down 3.2$288.4 million; adjusted EBITDA increased by 12.6% due to higher project activity in North America, despite an 18.1% drop in inbound orders [5] Shareholder Returns - The board declared a quarterly cash dividend of 5 cents per share, unchanged from the previous quarter, to be paid on June 4, 2025 [3] - The company repurchased 8.9 million common shares for a total of $250.1 million, with total shareholder returns for the quarter amounting to$271.1 million, including a dividend payment of $21 million [3] Financial Position - TechnipFMC reported costs and expenses of$2 billion, up 4.8% from $1.9 billion in the year-ago quarter; the company generated$441.7 million in cash flow from operations, with free cash flow increasing to $379.9 million [6] - As of March 31, the company had cash and cash equivalents of$1.2 billion and long-term debt of $410.8 million, resulting in a debt-to-capitalization ratio of 11.8$8.4 billion to $8.8 billion and Surface Technologies unit revenues between$1.2 billion and $1.35 billion for 2025 [8] - Anticipated adjusted EBITDA margins are 19-20$1 billion and $1.15 billion, an increase from the prior guidance of$850 million to $1 billion [9]