TechnipFMC plc FTI reported fourth-quarter 2023 adjusted earnings of 14 cents per share, which beat the Zacks Consensus Estimate of 12 cents. The bottom line also improved from the year-ago quarter’s reported loss per share of 5 cents. The improvement can be attributed to better-than-expected performance in the Subsea and Surface Technologies segments.

Revenues of $2.1 billion beat the Zacks Consensus Estimate by 9.9%. The top line also increased from the year-ago quarter’s reported figure of $1.7 billion. This was primarily due to a higher revenue contribution from the aforementioned segments.

FTI’s fourth-quarter inbound orders decreased 16.9% from the year-ago period’s level to $1.5 billion. The company’s backlog rose during the same time frame. As of December-end, TechnipFMC’s order backlog totaled $13.2 billion, up about 41.5% from that recorded a year ago.

On Feb 20, FTI’s board of directors declared a quarterly cash dividend of 5 cents per share to its common shareholders of record as of Mar 19. The payout, which remained flat quarter over quarter, will be made on Apr 3.

In the reported quarter, the company repurchased 2.7 million of its common shares for a total of $55 million. Total shareholder distributions were $76.7 million, including a $21.7 million dividend.

TechnipFMC plc Price, Consensus and EPS Surprise

TechnipFMC plc price-consensus-eps-surprise-chart | TechnipFMC plc Quote

Segmental Analysis

Subsea:  Revenues from this segment totaled $1.72 billion, up 28.4% from the year-ago quarter’s level of $1.34 billion. The figure also beat our projection of $1.45 billion.The increase in revenues was primarily due to increased project activity in the Gulf of Mexico, Asia Pacific and Africa.

Adjusted EBITDA amounted to $225.5 million, up about 61% from the year-ago quarter’s level. The figure also surpassed our estimate of $190.5 million. Inbound orders declined 16.2% year over year to $1.27 billion. The backlog rose 49.6% during the same time frame.

Surface Technologies:  This segment recorded revenues of $357.2 million, up 1.5% year over year. The figure also beat our projection of $351.3 million.

The unit’s adjusted EBITDA increased 18.2% to $52.5 million. The figure also exceeded our estimate of $46 million. The segment’s inbound orders fell 19.9% year over year. The quarter-end backlog decreased 12.7% during the same time frame.

Financials

TechnipFMC reported $1.94 million in costs and expenses, up 16.4% from the year-ago quarter’s level of $1.67 million.

During the reported quarter, the company spent $71.5 million on capital programs. Free cash flow amounted to $629.6 million, while operating cash flow totaled $701.1 million.