Accelerated Offshore Projects And Integrated Subsea Will Shape Future Momentum

Analysts have raised their price target for TechnipFMC from $41 to $43, citing continued strength in subsea orders and management's confidence in achieving long-term goals, even in the face of macro uncertainty.

Analyst Commentary

Recent analyst opinions on TechnipFMC reflect a balanced view, highlighting both the company's strengths and the challenges it faces in the current market environment. Many analysts have recently updated their ratings and price targets, providing insights into market expectations for TechnipFMC's future performance.

Bullish Takeaways

• Bullish analysts point to continued favorable trends in subsea orders. These trends are expected to support the company’s long-term revenue growth.
• There is confidence that TechnipFMC will achieve its three-year goal of $30 billion in subsea inbound orders by year-end. This underlines management’s ability to execute against strategic objectives.
• Raised price targets reflect a belief that TechnipFMC maintains a resilient position within the sector. This is notable even as peers face greater earnings risk from macro uncertainty.
• Premium pricing for advanced offshore assets and strong order backlogs improve visibility into near-term earnings and support higher valuations.

Bearish Takeaways

• Some bearish analysts have downgraded their outlook, citing ongoing softness and slowdowns in offshore drilling activity as a potential drag on growth.
• Expectations for 2025 suggest the year will be transitional for offshore activities. This raises concerns about the pace of recovery and new project starts.
• Declines in future oil prices and uncertainty around OPEC+ production may add risk to long-term topline expansion.
• While current utilization rates for high-spec assets are favorable, the broader industry environment remains uncertain. This tempers enthusiasm for significant upside in the near term.

What's in the News

• TechnipFMC has been awarded a substantial contract from ExxonMobil Guyana Limited to supply subsea production systems for the Hammerhead development in Guyana's Stabroek Block. The contract is valued between $250 million and $500 million (Client Announcements).
• The company secured a significant contract with Petrobras to provide subsea production systems for various greenfield and brownfield projects in Brazil. The scope includes installation support and life-of-field services, valued between $75 million and $250 million (Client Announcements).
• TechnipFMC was added to major S&P indices, including the S&P 1000, S&P Composite 1500, S&P 400, and S&P 400 Energy Sector (Index Constituent Adds).
• The company has been awarded two subsea contracts by Petrobras for flexible pipe. One is a substantial contract for gas injection risers in the Santos Basin, and another is a significant contract for flexible risers and flowlines in the Campos Basin (Client Announcements).
• From April 1, 2025 to June 30, 2025, TechnipFMC repurchased 8.28 million shares for $250.01 million, marking the completion of its repurchase program initiated in 2022, totaling $1.2 billion (Buyback Tranche Update).

Valuation Changes

• Fair Value Estimate has risen slightly from $41.14 to $41.71, reflecting incremental upside potential.
• Discount Rate has decreased modestly from 7.65% to 7.54%, indicating slightly lower perceived risk in future cash flows.
• Revenue Growth Projection is essentially unchanged, moving minimally from 5.83% to 5.83%.
• Net Profit Margin has edged down marginally from 10.57% to 10.55%.
• Future P/E has increased slightly from 15.95x to 16.14x, suggesting a modest rerating in valuation multiples.