Technip Energies raises TPS margin guidance despite Q2 earnings miss
Investing.com -- Technip (EPA:FTI) Energies on Thursday reported mixed second-quarter 2025 results, missing earnings estimates but raising its Technology, Products & Services (TPS) margin guidance for the full year.
The energy engineering company posted adjusted net income of €90 million, falling 19% short of company consensus expectations of €111 million.
Adjusted EBITDA came in at €157 million with an 8.7% margin, slightly below consensus estimates of €163 million at an 8.9% margin.
The company’s Projects Delivery segment reported EBITDA of €100.9 million with a 7.6% margin, missing consensus expectations of €107 million at an 8.1% margin.
Technip attributed this to "resilient performance despite a higher proportion of early-phase projects, for which we recognize limited margin contribution."
Meanwhile, the TPS segment delivered its highest-ever margin at 15.6%, with EBITDA reaching €71.7 million, exceeding consensus estimates of €68 million at a 13.7% margin.
The strong TPS performance was driven by "ethylene furnaces deliveries, catalyst supply, and project management consultancy."
Order intake for the quarter totaled €1,991 million with a book-to-bill ratio of 1.1x, slightly ahead of consensus expectations. However, the company’s backlog decreased 2% to €18 billion from €18.2 billion, impacted by a €667 million unfavorable foreign exchange effect.
Technip Energies’ backlog for 2026 increased to €6.5 billion, representing 79% coverage of expected revenue, up from €6 billion and 73% coverage reported in the first quarter.
The company’s adjusted net cash position stood at €3.269 billion, below consensus expectations of €3.352 billion and down from €3.297 billion in the first quarter.
For the full year 2025, Technip Energies maintained its Projects Delivery revenue guidance at €5.2-5.6 billion with an EBITDA margin of approximately 8%.
However, it raised its TPS segment margin guidance to 14.0-14.5% from 13.5% previously, implying a 2% increase in group EBITDA to €662 million.
Looking ahead, the company expressed confidence in its positioning for important awards in the next six to eighteen months across both business segments, particularly in LNG, blue molecules, and sustainable fuels, with the United States expected to be one of the most active regions.
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