Mark Bianchi

Mark Bianchi from TD Cowen asked about the performance of Nova LT orders, noting a strong first half but less activity in Q3. He sought expectations for Nova LT orders in Q4 and into 2026, as well as insights into the lead time for customers placing these orders.

Answer

CFO Ahmed Moghal confirmed a sharp increase in Nova LT orders year-to-date across data centers and industrial markets, expecting over $1 billion in Nova LT orders for 2025, a record year. He noted that oil and gas applications account for roughly one-third, with data centers and broader industrial markets making up the rest. Moghal highlighted a strong pipeline and broad demand for power generation applications. He also mentioned significant increases in manufacturing capacity and targeted investments to enhance Nova LT performance (power range, startup time). Demand for delivery slots extends well into 2028 and beyond, indicating strong market durability. The expanding installed base is expected to drive substantial aftermarket services growth and recurring revenue opportunities.

Mark Bianchi asked about the mix of TechnipFMC's subsea services (installation vs. installed base servicing), the growth rate for services in 2026, and the impact of integrated awards on future servicing opportunities. He also inquired about the fourth-quarter subsea revenue guide and the effect of vessel downtime.

Answer

Chair and CEO Douglas Pferdehirt clarified that subsea services growth is substantial and not decelerating, breaking down the mix into installation, inspection/maintenance/repair, refurbishment, and intervention services. EVP and CFO Alf Melin explained that Q4 subsea revenue decline is due to seasonal vessel utilization, particularly in the North Sea, but full-year revenue is expected above the midpoint of guidance.

Mark Bianchi asked about the mix of services (installation vs. servicing installed base) and why the 2026 service growth rate might appear to decelerate if it's in line with overall subsea growth. He also inquired about the longer-term impact of integrated awards on servicing opportunities and the vintaging of the installed base. He followed up on the Q4 subsea revenue guide, noting high backlog coverage but potential extra vessel downtime beyond normal seasonality, asking for clarification and progression into Q1.

Answer

Doug Pferdehirt, Chair and CEO, clarified that subsea services growth is not decelerating and benefits from a compounding effect of a larger installed base, breaking down services into installation, inspection/maintenance/repair, refurbishment, and intervention. He noted the substantial growth of the subsea services business. Alf Melin, EVP and CFO, confirmed the Q4 revenue decline is largely due to vessel utilization and normal seasonal activity, particularly in the North Sea, affecting offshore revenue generation, but reiterated that the full-year revenue expectation remains above the midpoint.