TechnipFMC plc

Hello, and thank you for standing by. My name is Regina, and I will be your conference operator today. At this time, I would like to welcome everyone to the TechDeep FMC first quarter 2026 earnings conference call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press star followed by the number one on your telephone keypad. If you'd like to withdraw your question, press star one again. We ask that you please limit yourself to one question and one follow-up. I would now like to turn the conference over to Matt Seinzheimer, Senior Vice President of Investor Relations and Corporate Development. Please go ahead.

Thank you, Regina. Good morning and good afternoon, and welcome to Technip FMC's first quarter 2026 earnings conference call. Our news release and financial statements issued earlier today can be found on our website. I'd like to caution you with respect to any forward-looking statements made during this call. Although these forward-looking statements are based on our current expectations, beliefs, and assumptions regarding future developments and business conditions, they are subject to certain risks and uncertainties that could cause actual results to differ materially from those expressed in or implied by these statements. Known material factors that could cause our actual results to differ from our projected results are described in our most recent 10K, most recent 10Q, and other periodic filings with the U.S. Securities and Exchange Commission. We wish to caution you not to place undue reliance on any forward-looking statements which speak only as of the date hereof. We undertake no obligation to publicly update or revise any of our forward-looking statements after the date they are made. whether as a result of new information, future events, or otherwise. I will now turn the call over to Doug Ferdinand, Technique FMC's Chair and Chief Executive Officer.

Thank you, Matt. Good morning and good afternoon. Thank you for participating in our first quarter earnings call. Our quarterly results reflect strong operational performance throughout the company, driven by solid executions. Total company revenue in the period was 2.5 billion. Adjusted EBITDA was 453 million with a margin of 18.2% when excluding foreign exchange. Free cash flow was 277 million with total shareholder distributions of 285 million in the quarter. This early momentum positions us well to achieve our full year financial targets. Turning to sub C, orders in the quarter were 1.9 billion, driven by robust services and unannounced project activity. Our inbound highlights the importance of strong and enduring customer relationships as we continue to benefit from a high level of direct awards to our company. Importantly, we see a strengthening trend in order activity as we move through the year, supporting our confidence in achieving 10 billion of subsea orders in 2026. Turning to the Middle East, our thoughts are first and foremost with the people who have been affected. The well-being of our employees and their families is paramount. We took immediate and comprehensive measures to ensure the safety of our teams in the region. We were able to operate safely with minimal disruption. As a reminder, only 4% of our revenue is derived from the Middle East. This is almost entirely related to work we execute through onshore activities within our surface technology segment. Our offshore operations in subsea have not been impacted. Even before the conflict, the queue of potential deepwater projects had been expanding over the last five years. The significant impacts to both security and energy supply resulting from the conflict are likely to have lasting impacts on the perceived risk assigned to the region. We believe this builds further momentum in the ongoing shift in capital flows toward offshore developments, with the potential to accelerate opportunities in markets with extensive infrastructure, including the U.S. Gulf and the North Sea, and regions with previously discovered and well-identified resources that can add material volumes to an operator's reserve base, such as West Africa. Our subsea opportunities list highlights several of these opportunities. With our quarterly update, the list now identifies approximately 30 billion of opportunities for potential award over the next 24 months. representing the seventh consecutive quarterly increase in value. Over the last two years, this list has grown by more than 30% when using the midpoint of project values. While all global regions have experienced growth during this time, the most significant increases have come from Africa, Asia Pacific, and the North Sea. The average project size has expanded to nearly $800 million, driven by a more than doubling of potential developments over $1 billion versus just two years ago. Additionally, this list now includes 22 distinct clients, which speaks to our expanding customer base. This trend has been supported by our unique capabilities and integrated execution as demonstrated by our proven IEPCI model. Looking ahead, we believe there will be a step up in inbound orders in 2027 and extending through the end of the decade. Importantly, This growth will be supported by IEPCI, Subsea 2.0, and Subsea Services, much of which will be direct awarded to our company. I now want to close with a few key messages. First, we remain focused on the relentless pursuit of the reduction of cycle time. With every activity we undertake, With every change in process we pursue and with every capital investment we propose, we ask ourselves, does this shorten project cycle time? This unique mindset continues to serve as the fundamental driver to improving project economics, benefiting both our customers and Technipa FMC. Second, As we continue to drive a different paradigm around capital investment, we are delivering improved capital efficiency and higher free cash flow conversion. Importantly, we remain committed to returning at least 70% of free cash flow to shareholders through both dividends and share repurchases. Lastly, our strong commercial success and high-quality backlog built upon an expanding mix of direct awards, IEPCI, and services position us well to increase subsea inbound revenue and EBITDA margin in 2027. Technip FMC is in full growth mode. I will now turn the call over to Elf to discuss our financial results.