Technip Energies NV reported a mixed fourth-quarter performance, issuing a new share buyback program and a higher dividend even as adjusted net income fell short of expectations.
Adjusted net income for the quarter amounted to €82 million, missing the company consensus estimate of €106 million by 23%. Management attributed the shortfall in part to elevated non-recurring charges totaling €31 million, which included investments into Reju and expenses related to merger and acquisition activity.
On an adjusted basis, EBITDA reached €160 million with a margin of 9.0%. That outcome was marginally below the company consensus of €167 million, although the consensus showed a very similar margin at 8.9%. Segment-level results were split between Projects, which produced EBITDA of €108 million at an 8.0% margin, and TPS, which delivered €60 million of EBITDA at a 12.8% margin.
In a shareholder return move, Technip Energies announced a fiscal year 2025 dividend of €1.00 per share, an 18% increase from the prior year payout of €0.85 per share. The company also unveiled a €150 million buyback program to be executed in 2026, allocating €120 million to repurchase common shares and €30 million to cover equity compensation plans.
Order intake for the fourth quarter was reported at €1.27 billion, outpacing the company consensus of €1.17 billion by 9%. Despite the stronger intake, the company recorded a book-to-bill ratio of 0.7x. Backlog declined 5% quarter over quarter to €16.0 billion, down from €16.8 billion in the third quarter.
Cash metrics reflected the completion of a transaction and the related cash outflow. Adjusted net cash stood at €2.82 billion, down from €3.32 billion in the prior quarter following the completion of the AM&C transaction for €472 million.
Looking ahead to fiscal 2026, Technip Energies provided revenue and margin guidance with Projects Delivery revenue forecast between €6.3 billion and €6.7 billion and an EBITDA margin of approximately 8%. For the TPS business, management expects revenue of €2.0 billion to €2.2 billion with an EBITDA margin of approximately 14.5%. At the midpoint of guidance, the combined implication is an EBITDA of €770 million, which aligns with consensus estimates. Corporate costs are expected to range from €50 million to €60 million, and the effective tax rate is projected between 26% and 30%.
The company also set an ambition for 2026 order activity, stating it expects to achieve its highest-ever annual order intake in 2026 and aims to reach a backlog of €24 billion by the first half of 2026 - a target that represents a roughly 50% increase from current backlog levels.
Key points
- Technip Energies reported adjusted net income of €82 million in Q4, below the €106 million consensus.
- The company announced a €150 million buyback program for 2026 and raised the fiscal 2025 dividend to €1.00 per share.
- Order intake beat estimates at €1.27 billion, but backlog fell to €16.0 billion and adjusted net cash decreased to €2.82 billion after an AM&C transaction.
Risks and uncertainties
- Backlog declined 5% quarter over quarter to €16.0 billion, which may affect near-term revenue visibility for Projects and TPS segments.
- Adjusted net cash reduced to €2.82 billion following a €472 million AM&C transaction, tightening liquidity relative to the prior quarter.
- The company’s 2026 targets - including its goal of the highest-ever annual order intake and a €24 billion backlog by H1 2026 - are forward-looking objectives and will depend on future order flow.