TechnipFMC (NYSE:FTI) Chief Executive Officer Doug Pferdehirt told investors the company is entering 2026 with “a high level of confidence,” citing revenue and EBITDA margin growth expectations in its subsea business and a strategy built around reducing offshore project cycle times and improving certainty of outcomes for customers.
Speaking at a Goldman Sachs conference, Pferdehirt said the company was “very proud” of its accomplishments in 2025, though results have not yet been publicly reported. He emphasized that the company issued 2026 guidance in October and expects “compounding growth to EBITDA dollars” as subsea revenue and margins rise.
Strategy: Integrated delivery and “Subsea 2.0” to reduce cycle times
He traced the effort back to 2015, when TechnipFMC entered a joint venture (Forsys Subsea) to “really understand the value of integration,” and to the creation of the current entity in January 2017. He said the integration helped remove “waste” and “interfaces” and improved “certainty of outcome.”
A major component is the company’s Subsea 2.0 architecture, which Pferdehirt said replaces bespoke engineering with configurable, pre-engineered components. He contrasted the approach with earlier processes that required “nine to 12 months of engineering” before manufacturing could begin, versus going “straight into assembly and test” under Subsea 2.0.
According to Pferdehirt, customer adoption has supported pricing and market position, noting that 80% of TechnipFMC’s business is directly awarded and “never goes out to a competitive tender,” which he said reflects differentiation created by Subsea 2.0 and integrated project execution (iEPCI).
Market view: Offshore economics and capital flows
When asked about competition and the potential for other offshore service names to see faster gains if activity accelerates, Pferdehirt said he believes investors should “go with the winners,” arguing the opportunity is not simply a cyclical trade but reflects a “redefined” company and a changed market structure.
On the relationship between offshore and U.S. unconventional production, he said North America represents about 10% of TechnipFMC’s business and he preferred to focus on capital allocation trends. Pferdehirt said offshore reservoirs are “much more prolific” with “a much lower decline rate,” supporting project returns. He also said offshore economics had previously deteriorated due to industry performance, adding, “That was our fault as an industry,” and that the company’s redesign was meant to reverse that dynamic.
He said the company’s objective is straightforward: “We have to beat the economics of U.S. unconventionals,” adding that it does so today, as evidenced by customer order flows.
Regional outlook: Brazil, Guyana, Suriname, and multiple gas-focused basins
Pferdehirt provided a broad regional tour, citing multiple areas of activity and potential growth:
- Brazil: He highlighted the Equatorial Margin as “extremely exciting” and “a whole incremental leg of growth,” while noting exploration is underway and more will be learned from results. Asked about concerns around longer-dated activity levels and budget constraints, he said he had “nothing in particular” to highlight.
- Guyana: Pferdehirt said TechnipFMC does “all of ExxonMobil’s work in Guyana” and continues to receive “continued direct awards.” He called ExxonMobil’s execution “unprecedented.”
- Suriname: He pointed to Block 58 (GranMorgu) with TotalEnergies as the first iEPCI 2.0 project in Suriname and said he anticipates additional projects, including potential FIDs from other operators.
- West Africa: He said the region could “surprise to the upside,” despite being “a bit quiet.”
- Eastern Mediterranean and Norway: He cited continuing strength, particularly gas-related activity supplying Europe.
- Mozambique and Indonesia: He said Mozambique now has multiple projects underway, and described Indonesia as “very interesting” with multiple tenders, largely gas-focused.
- U.S. Gulf of Mexico: He said Paleogene activity has moved faster than he anticipated and noted a direct award from BP for the Tiber project, following Kaskida.
- Namibia: He said the company is actively tendering and expects multiple projects.
Orders, margins, and the next phase of Subsea 2.0
Discussing order expectations, Pferdehirt said the company believes an approximately $10 billion annual order level is “sustainable,” and added, “we do believe there’s upside,” though he cautioned against reading too much into the apparent steadiness of the number. He said TechnipFMC has visibility “out beyond the end of the decade,” partly because it participates with customers in architecture and FEED or pre-FEED work that can begin years before FID.
On cycle-time improvements, he said Subsea 2.0 represents “over 50%” of orders today and uses about “a third to 40%” of manufacturing capacity. He said the original Subsea 2.0 work largely focused on seabed equipment, while future opportunity includes the water column (umbilicals, risers, and flowlines) and vessel/installation processes. Using a hockey analogy, he said the company is “about a third of the way there,” with “two-thirds of opportunity” remaining to industrialize within its scope.
Pferdehirt also outlined margin drivers, pointing to internal efficiency gains from lean methodology applied across the organization, not only in manufacturing. He said the culture is built around finding time and process savings, enabling growth without major consolidation, large-scale capital investment, or M&A, and improving returns on invested capital.
On Subsea 2.0 adoption, he said the company has not seen customers revert after adopting the system, calling it “very sticky.” While he said adoption is approaching 100%, he indicated 100% may not be necessary due to project-specific nuances, and said any remaining “1.0” capability would be isolated to avoid disrupting Subsea 2.0 manufacturing flow.
Services growth, robotics-enabled repairs, electrification, and capital allocation
On the mix of activity in 2026, Pferdehirt said he expects the market may be “pleasantly surprised” by greenfield awards, alongside incremental brownfield awards in emerging geographies. He emphasized Life of Field services as an “OEM model” driven by an expanding and aging installed base, which increases inspection, maintenance, and repair needs.
He said the company expects services to grow in line with overall segment growth, with potential upside. He also described technology that enables subsea repairs “in situ” using advanced robotics—reducing downtime from “plus or minus nine months” to “days,” which he said can materially reduce lost production for customers.
Pferdehirt also discussed the move from hydraulic to electric actuation for subsea infrastructure, citing limitations of hydraulics over long distances due to friction pressure. He highlighted a carbon capture and storage application with BP’s Northern Endurance Partnership in the U.K., describing it as the first full-field, all-subsea electric actuation project, designed to transport captured CO2 145 kilometers offshore for injection and permanent storage.
On capital allocation, Pferdehirt said the company has an investment-grade, “pristine” balance sheet, is a net cash company, and is generating material cash flow. He reiterated a commitment that 70% of free cash flow will be distributed to shareholders, primarily through share buybacks and dividends. He said the company’s strategy is not built around large M&A, and that any acquisitions would need to materially reduce cycle time or add customer value. He also said TechnipFMC has been disciplined on capital spending, targeting 3.5% to 4.5% and spending below 3.5% while growing, and noted that gross debt has been reduced with no major maturities for multiple years.
About TechnipFMC (NYSE:FTI)
TechnipFMC is an integrated oilfield services and technology company that designs, manufactures and delivers systems and services for the energy industry. The company’s activities span the full lifecycle of oil and gas projects, with capabilities in subsea production systems, surface wellhead and intervention equipment, and onshore/offshore engineering and construction. TechnipFMC combines engineering and project management with fabrication, installation and maintenance services to help operators develop and produce hydrocarbon resources.
Its product and service portfolio includes subsea hardware such as trees, manifolds, umbilicals, risers and flowlines, as well as surface equipment for drilling, completions and well intervention.
