TechnipFMC (FTI): Assessing Valuation After Securing Major Petrobras Subsea Contracts in Brazil

TechnipFMC (NYSE:FTI) just secured two substantial subsea contracts from Petrobras, catching attention across the energy sector. The deals are focused on supplying highly engineered flexible pipe solutions for offshore oil and gas projects in Brazil’s rich pre-salt basins. One contract covers advanced gas injection risers, and the other involves risers and flowlines for major fields, reinforcing TechnipFMC’s ongoing partnership with Petrobras and highlighting its technical edge in challenging environments.

These contracts come as TechnipFMC shares have climbed about 67% over the past year and 33% so far in 2025. While momentum has been building, the company’s recent conference appearances and consistent deal flow, especially in Brazil, have helped drive fresh interest. Shorter-term gains, particularly over the past quarter, have also supported investor confidence that TechnipFMC’s growth narrative remains strong.

With the shares riding high after these new Petrobras awards, the big question is whether the current price reflects all potential future growth, or if there is more value left for investors to capture.

Most Popular Narrative: 4.5% Undervalued

The most widely followed narrative suggests TechnipFMC is modestly undervalued, with analysts seeing some upside potential even after its strong run.

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.

Curious what underpins this high-conviction rating? There is a lot going on behind the scenes, from forward-looking revenue growth to future profit margins that are not typical for the sector. Want to see which forecasts for cash flow and market multiples are tipping the scales in TechnipFMC’s favor? The numbers behind this narrative could surprise you.

Result: Fair Value of $41.14 (UNDERVALUED)

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

However, ongoing geopolitical risks in emerging markets and increased competition in subsea technologies could quickly change the story for TechnipFMC going forward.

Find out about the key risks to this TechnipFMC narrative.

Another View: Earnings Ratios Tell a Different Story

Looking at TechnipFMC through the lens of earnings ratios compared to the rest of the US energy services sector, the picture is a bit less optimistic. This method suggests shares might actually be a bit expensive right now. Which perspective truly captures the company’s value?

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

Stay updated when valuation signals shift by adding TechnipFMC to your watchlist or portfolio. Alternatively, explore our screener to discover other companies that fit your criteria.

Build Your Own TechnipFMC Narrative

If you think there is more to TechnipFMC’s story or want to take a closer look at the numbers yourself, you can easily create your own perspective with the latest data. Do it your way

A good starting point is our analysis highlighting 3 key rewards investors are optimistic about regarding TechnipFMC.

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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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