A Look at TechnipFMC (NYSE:FTI) Valuation Following Major ExxonMobil and Petrobras Contract Wins

TechnipFMC (NYSE:FTI) has announced major contract wins with ExxonMobil Guyana Limited and Petrobras, drawing fresh attention from investors. These sizeable projects highlight the company's strength in offshore subsea engineering and are expected to support further growth.

See our latest analysis for TechnipFMC.

TechnipFMC’s recent contract wins with ExxonMobil Guyana and Petrobras have kept it in the industry spotlight, and the company’s upbeat earnings revisions and positive investor sentiment suggest momentum is building. This confidence is reflected in the stock’s robust 43.2% total shareholder return over the past year, outpacing many sector peers and pointing to the company’s strong position as new projects ramp up.

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With this recent surge, some investors are now weighing whether TechnipFMC’s strong run leaves room for further upside, or if the stock’s momentum and future growth are already fully reflected in the share price.

Most Popular Narrative: 6.6% Undervalued

TechnipFMC’s last close of $38.42 sits nearly 7% below the valuation estimate in the most popular narrative, giving bulls optimism for further upside as the company’s execution and subsea pipeline attract attention.

Expansion and recurring tail of Subsea services revenues, driven by a growing installed base and long-duration contracts (20 to 35 years), provide predictable, high-margin income streams that underpin long-term earnings stability and net margin improvement.

Read the complete narrative.

What’s the engine powering that premium? The narrative leans on long-lived contracts and future margin expansion. Yet, the crucial growth metrics are hidden in the full story. Could one assumption bring the whole valuation into focus? Find out what number everyone’s watching.

Result: Fair Value of $41.14 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, persistent reliance on traditional oil and gas, along with exposure to volatile regions, could challenge TechnipFMC’s growth story if market conditions shift.

Find out about the key risks to this TechnipFMC narrative.

Another View: What Do Multiples Say?

While the popular narrative points to TechnipFMC being undervalued, the market’s price-to-earnings ratio suggests a different story. At 16.8x, TechnipFMC trades well above both the Energy Services industry average of 15.1x and the peer group’s 12.4x. The fair ratio sits close behind at 16.9x, which hints that the market’s optimism may already be priced in. Could the current pricing be a sign that value is limited, or is there still room for a surprise?

See what the numbers say about this price — find out in our valuation breakdown.

Build Your Own TechnipFMC Narrative

If you want a different perspective or enjoy digging into the numbers yourself, it's easy to build your own view in just a few minutes, and Do it your way.

A great starting point for your TechnipFMC research is our analysis highlighting 3 key rewards and 1 important warning sign that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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