Technip Energies forecasts robust growth to 2028

PARIS - Technip (EPA:FTI ) Energies (PARIS:TE), a global leader in energy transition infrastructure, outlined a robust growth strategy and financial outlook during its Capital Markets Day in London, projecting significant expansion through 2028. CEO Arnaud Pieton emphasized the company's role in securing sustainable energy and its readiness to thrive in various energy transition scenarios.

The company, which has seen strong financial performance since its inception in 2021, is targeting a diversified portfolio to bolster its presence in new markets. Technip Energies anticipates a commercial pipeline exceeding €75 billion through 2026, with a balanced focus on energy, energy derivatives, and decarbonization markets.

For the medium term, by 2025, Technip Energies expects Project Delivery revenue to range between €5.0 and €5.4 billion with an EBITDA margin of roughly 8%, while the Technology, Products & Services (TPS) segment is projected to generate €2.0 to €2.2 billion in revenue with a 13.5% EBITDA margin. Corporate costs are estimated to be between €50 and €60 million.

Looking further ahead to 2028, the company's financial framework projects Project Delivery revenue to exceed €6.0 billion with an EBITDA margin of approximately 8.5%. TPS revenue is anticipated to surpass €2.6 billion, with an EBITDA margin nearing 14.5%, and corporate costs are expected to be around €60 million. The free cash flow conversion from EBITDA is expected to be between 70% and 85%, excluding working capital, with a cumulative free cash flow from 2024 to 2028 ranging from €2.2 to €2.6 billion.

Technip Energies' growth is underpinned by strong market demand and business diversification, particularly in the decarbonization sector, which includes carbon capture, clean hydrogen, and sustainable fuels. The company's addressable market is expanding, driven by structural megatrends such as population growth, urbanization, and economic development.

The company's capital allocation strategy focuses on shareholder returns and strategic investments. The balance sheet, with over €1 billion of available firepower, supports a dividend payout policy of 25% to 35% of free cash flow, excluding working capital, with potential share buybacks depending on market conditions.

Technip Energies' approach to growth combines continuous innovation, smart engineering, and execution excellence, aiming to bridge prosperity and sustainability for the long term. This growth strategy and financial outlook are based on the company's assessment of the current macro-economic and geopolitical environment, without anticipating major changes. The information presented here is based on a press release statement from Technip Energies.

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Source: Investing.com