Technip Energies Nv

Good afternoon. This is the conference operator. Welcome and thank you for joining the Technip Energy's first quarter 2025 financial results conference call. As a reminder, all participants are in listen-only mode. After the presentation, there will be an opportunity to ask questions by pressing star and one on your telephone keypad. Should anyone need assistance during the conference call, they may signal an operator by pressing star and zero on their telephone. At this time, I would like to turn the conference over to Mr. Philippe Lindsay, Head of Investor Relations. Please go ahead, sir.

Thank you, Sabrina. Hello and welcome to Technip Energy's financial results for the first quarter of 2025. On the call today, our CEO, Arnaud Piertan, will discuss our Q1 performance and business highlights. This will be followed by CFO Bruno Viver, who will provide more details on our financials. Arnaud will then come back to conclude before opening for questions. Before we start, I would urge you to take note of the forward-looking statements on slide three. I will now pass the call over to Arnaud.

Thank you, Phil, and welcome everyone to our first quarter earnings presentation. I will begin with the highlights of our strong performance. Technip Energies kicks off 2025 with significant year-over-year growth of plus 22% in revenues and plus 19% in EBITDA. This outstanding performance is reflective of the quality of order intake over the last two years and our team's relentless focus on execution. We confirm 2025 group guidance. which, I remind you, was provided five months ago in November 2024, with solid revenue growth and segment EBITDA margins unchanged. Project delivery posted robust year-over-year growth, plus 34% in revenues and plus 28% in EBITDA. PDD is long-cycle and is our largest business segment. And since, over the period, full year visibility has improved further, we raised 2025 guidance for this segment. Revenues for TPS technology products and services were slightly lower year over year by 5%, while EBITDA improved by plus 8% as we reached the tail end of some proprietary equipment deliveries. Given the uncertainty surrounding policies and macroeconomic environment, we are widened the revenue range for our shorter cycle segment while confirming continued EBITDA margin expansion. Commercially, the momentum remains solid with TPS posting a book to build above 1.0, demonstrating our ability to capitalize on demand for our services and solution offerings, and project delivery in April, winning a major contract in the U.S. for the world's largest blue ammonia plant. This prestigious award, combined with our active commercial pipeline, position us well for enhanced project delivery order intake in the coming quarters. Backlog at period end stood at €18.2 billion, equivalent to 2.7 times our 2024 revenues, underpinning the strength and sustainability of our business. Turning to our key priority for 2025, Execution. As we embark on 2025 with our highest-level backlog position, I wanted to reiterate our foremost priority, a sound and high-quality execution. This includes projects moving towards completion over the next several quarters, including Midor, Babco, and Energia Costa Azul for SEMPRA. In addition, following cumulative order intake of more than $20 billion for 2023 and 2024, we are diligently ramping up a new wave of major projects. These projects are well diversified by size, market, technology, and geography. Notable projects include Huwais LNG in the UAE, the top site for Grand Morgue FPSO in Suriname, and Net Zero T-Site in the UK. These projects will maturely contribute to the delivery of our 2028 financial framework. Simultaneously, we are progressing on performance-enhancing strategic initiatives, such as the implementation of our digital acceleration plan, poised to generate 100 million euros in annualized cost savings beyond 2028. We have launched more than 80 initiatives aimed at improving efficiency. These initiatives leverage our extensive project database, fostering greater certainty and predictability in execution. They include... faster feed study delivery, enhanced safety, and reinforced sharing of expertise across our organization. In short, the group remains focused on delivering a record high quality and good mix backlog while improving internal processes for greater operational efficiency. Now I want to touch upon the current macro environment and showcase how TEN will remain strong in any scenario. Recent months have seen increase in certainty surrounding trade policies and macroeconomic environment. The situation remains fluid and we are actively monitoring developments while working closely with our customers to provide visibility. In the last 18 months, we have expanded our approved vendor list, allowing us to offer clients greater flexibility in sourcing and execution schemes. This enables their projects to move forward with the assurance of TEN's unique delivery capabilities and financial strength. The global push towards a pragmatic yet ambitious decarbonization is seeing industries pursue affordable, sustainable developments. Despite policy uncertainties surrounding clean technology, Our customer engagements remain positive, and projects are materializing, as illustrated by the Blue Point number one project, which was awarded to Technip Energies in April. I will address this shortly. So regardless of the external environment, TEN's vitals are strong. We possess a world-class backlog that ensures extensive revenue coverage. We have a solid commercial pipeline providing upside to existing performance. We consistently generate strong, positive free cash flows, and we maintain a robust balance sheet, enabling us to return cash to shareholders and seize value-enhancing investment opportunities. In summary, Penn is a healthy and financially robust company with a clear pathway to continued sound performance and solid value creation. We stand resilient and ready to capitalize on any scenario that unfolds. So let's take a deeper look at our commercial pipeline, which shows opportunities exceeding 70 billion euros over the next two years. Our commercial pipeline remains robust, mirroring the prospects presented at our November 2024 CMD. These opportunities are well diversified by geography and market, reflecting our selective engagement policy, striving for quality, not volume. It is important to note that here are presenting our address market, which encompasses only the opportunities that we have chosen to pursue. The pace of our customer engagement is unwavering, and we continue to benefit from high interest across the board from traditional as well as new customers on all markets and offering. It's enabling us to further promote innovative design and solutions to make projects viable. Our pipeline is balanced, with no single geography accounting for more than 30% of the total, and prospects are well distributed across markets. Energy remains the largest element in our pipeline at over 40%, including significant LNG prospects. Decarbonization accounts for more than 30% of the total, equivalent to more than 22 billion of opportunities. This includes major prospects across blue molecules, sustainable fuels, and carbon capture. In summary, we have a solid commercial pipeline with high-quality prospects in both traditional and new markets. This provides significant value beyond our backlog, with orders starting to materialize from Q2 onwards. As an illustration, in April, we secured a groundbreaking contract in the U.S. for Bluepoint No. 1 ATR. This major award to be booked in Q2 and valued at over 1 billion euros, net to 10, aims to establish the world's largest low-carbon ammonia plant with a capacity of approximately 1.4 million tons per annum. Technip Energies will undertake the engineering, procurement, equipment, and module fabrication for this state-of-the-art production facility, leveraging our unrivaled expertise in modularization and delivering large-scale facilities that integrate cutting-edge technologies. The design of the project will enable more than 95% CO2 recovery with a low carbon ammonia earmarked for both traditional applications, such as fertilizers, and innovative uses, including co-combustion for power generation. In summary, A pivotal award for TEN, demonstrating our leading credential in blue molecules and reinforcing why Technip Energies is part of the solution in a global effort towards affordable decarbonization at scale. Now, before passing the call back to Bruno, let me provide an update on Reju, our material regeneration company, and its progress in building a circular Plexiles ecosystem to solve for post-consumer Plexiles waste. Since we last updated the market in November, Reju has been advancing on multiple fronts, including the technology, finalizing site selection for our first commercial-scale plant, and working towards securing vital feedstock and uptake agreements. The commissioning and certification of our demo plant in Frankfurt was successfully completed in the first quarter, and we are now producing. We anticipate the core technology to reach technology readiness level 7 by mid-year. In addition, in collaboration with IBM, we are establishing a digital product passport to certify the circularity, something that top brands are demanding and Reju will be providing. We have preselected the location for Regeneration Lab 1, the first industrial scale plant in Europe, and will soon reveal its location. as Reju has made significant strides in securing the essential feedstock for this first full-scale plant with several collaborations announced in Europe. Lastly, Reju has had substantial commercial interest following the initial production from our demo plant, marking a significant milestone in its evolution. I will now pass the call over to Bruno.