TechnipFMC plc (NYSE: FTI) has released its fourth-quarter 2023 results, showcasing significant growth and operational momentum. The company reported a robust subsea inbound of $1.3 billion for the quarter, contributing to a full-year order increase of 45% to $9.7 billion compared to 2022. The total company backlog also saw a substantial rise of 41% to $13.2 billion versus the prior year.
Key financial highlights from continuing operations in the fourth quarter of 2023 include: Revenue: $2,077.7 million Income attributable to TechnipFMC: $53 million Adjusted EBITDA: $218.7 million Inbound orders: $1,531.6 million * Ending backlog: $13,231.0 million
For the full year 2023, the company reported: Revenue: $7,824.2 million Income attributable to TechnipFMC: $56.2 million Adjusted EBITDA: $819.6 million Inbound orders: $10,982.9 million * Ending backlog: $13,231.0 million
Doug Pferdehirt, Chair and CEO of TechnipFMC, expressed pride in the strong quarterly and full-year results, emphasizing the company's growth trajectory and operational momentum. Pferdehirt highlighted the growth in total company inbound, particularly in subsea orders, which saw a 45% increase over the prior year. He emphasized the record level of Iepci™ awards and the high-quality inbound that exceeded 70% of subsea orders.
Pferdehirt also pointed out the company's impressive financial performance, with a 17% increase in total company revenue for the year and a 40% rise in adjusted EBITDA to $939 million, excluding the impact of foreign exchange. The company generated cash flow from operations of $693 million and free cash flow of $468 million for the year. Shareholder distributions totaled nearly $250 million through share repurchases and dividends.
Looking ahead, Pferdehirt expressed confidence in the company's strong growth prospects, driven by the resilience and durability of the current cycle. He highlighted the company's increased expectations for subsea inbound, projecting it to reach $30 billion over the three-year period ending 2025.
In the subsea segment, the company reported fourth-quarter revenue of $1,720.5 million, reflecting a sequential increase of 0.7%. Subsea operating profit was $145.7 million, and adjusted EBITDA was $225.5 million for the quarter. The segment's inbound orders were $1,270 million, with a book-to-bill ratio of 0.7x.
In the surface technologies segment, fourth-quarter revenue was $357.2 million, showing a sequential increase of 2.5%. The segment reported operating profit of $33.2 million and adjusted EBITDA of $52.5 million. Inbound orders for the quarter were $261.6 million, with backlog ending at $1,066.9 million.
The company also provided its full-year financial guidance for 2024, including revenue ranges for both the subsea and surface technologies segments, as well as guidance for corporate expenses, net interest expense, tax provision, capital expenditures, and free cash flow.
TechnipFMC's shares have responded well to the news, moving 3.2% and currently trading at a price of $20.91.
The company's full 8-K submission is available here.
