What TechnipFMC (FTI)'s Major Petrobras Contract Means for Shareholders

• Petrobras recently awarded TechnipFMC a significant contract, valued between US$75 million and US$250 million, for subsea production systems to support new developments, expansions, and asset revitalizations across its portfolio, with manufacturing and servicing to be carried out locally in Brazil.
• This contract highlights TechnipFMC's ability to secure major integrated projects in offshore markets, reinforcing its position as a key supplier to major energy clients in Brazil.
• We'll explore how this high-value Petrobras contract strengthens TechnipFMC's project pipeline and impacts its longer-term investment narrative.

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TechnipFMC Investment Narrative Recap

To be a TechnipFMC shareholder, you must believe in continued global investment in offshore and deepwater projects, fueling a strong subsea order pipeline and providing visibility into future revenues. The recent Petrobras contract, while boosting near-term backlog and client relationships in Brazil, does not fundamentally shift the key short-term catalyst, the pace of major offshore project sanctions. The biggest risk to watch remains demand volatility tied to the global energy transition away from oil and gas.

Among recent announcements, TechnipFMC’s addition to the S&P 1000 index on September 12 stands out as especially relevant. Index inclusion can increase visibility and liquidity, factors that may interact with new contract wins to support investment interest, but do not directly alter the risk of delayed project cycles or margin pressure.

Yet, while major contract wins make headlines, it’s the potential for slower spending on fossil fuel projects that investors should be aware of...

Read the full narrative on TechnipFMC (it's free!)

TechnipFMC's outlook predicts $11.3 billion in revenue and $1.2 billion in earnings by 2028. This implies a 5.8% annual revenue growth rate and an earnings increase of $262.5 million from the current $937.5 million in earnings.

Uncover how TechnipFMC's forecasts yield a $41.14 fair value, a 3% upside to its current price.

Exploring Other Perspectives

Fair value estimates from the Simply Wall St Community range widely, from US$21.65 to US$50.58 across five contributors. While some foresee continued growth anchored by strong subsea orders, others remain cautious, reflecting the uncertainties facing traditional energy suppliers.

Explore 5 other fair value estimates on TechnipFMC - why the stock might be worth as much as 27% more than the current price!

Build Your Own TechnipFMC Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your TechnipFMC research is our analysis highlighting 3 key rewards that could impact your investment decision.
• Our free TechnipFMC research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate TechnipFMC's overall financial health at a glance.

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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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