Adi Modak

Adi Modak asked for the directional outlook for Surface Technologies in 2026, the drivers for the raised 2025 margin guidance, and an update on the all-electric subsea infrastructure opportunity, including its impact on orders and margins.

Answer

Chair and CEO Douglas Pferdehirt expressed pride in the Surface Technologies team's improved results, noting less certainty for 2026 but highlighting success with iComplete™ and Middle East investments. He discussed the progression of all-electric solutions in carbon capture, brownfield tiebacks, and a new application: retrofitting hydraulic trees with electric actuation, revising earlier expectations for widespread greenfield adoption.

Adi Modak asked for the directional outlook for Surface Technologies for 2026, considering Saudi activity and the drivers behind the raised 2025 margin guidance. He also inquired about the status of all-electric subsea infrastructure opportunities, its topicality, potential orders, margins, and recent peer announcements.

Answer

Doug Pferdehirt, Chair and CEO, praised the Surface Technologies team for improving results through strategic focus, but noted the 2026 outlook for this segment is less certain and predictable than subsea, hence no early guidance. He highlighted strong positioning in the Middle East and success with the iComplete offering. Regarding all-electric subsea, he clarified that while TechnipFMC secured the first award, the transition of all new greenfield developments might not be as strong as initially anticipated. He identified key benefit areas as carbon capture and storage, brownfield tiebacks, and a new application: retrofitting hydraulic trees with electric actuation in situ on the seafloor.

Adi Modak asked Ron Gusek to elaborate on the steps involved in signing power contracts, given the longer timeline compared to oilfield services. He also asked Michael Stock if equity or convertible debt would be considered as financing tools.

Answer

CEO Ron Gusek explained that power contracts involve aligning multiple parties (land, permitting, fiber, fuel, end-use contracts for hyperscalers), which takes time before a final Energy Services Agreement (ESA) can be signed. CFO Michael Stock stated that while nothing is necessarily off the table for financing, Liberty has a clear path to fund a large portion of these projects without major dilution, always seeking the most cost-effective and efficient methods.