Technip Energies Nv

Good afternoon. This is the conference operator. Welcome and thank you for joining the Technip Energy's full year 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 1 on your telephone. Should anyone in 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 Philippe Lindsay, Head of Investor Relations. Please go ahead, sir.

Thank you, Maria. Hello and welcome to Technip Energy's Financial Results for Full Year 2025. On the call today, our CEO, Arnaud Piertan, will discuss our full year performance and business highlights, This will be followed by CFO Bruno Bubert, who will discuss our financials. Arnaud will then return for the outlook and conclusion before opening the questions. Before we start, I encourage you to take note of the forward-looking statements on slide three. I'll now pass the call over to Arnaud.

Thank you, Phil, and a very warm welcome to our 2025 full-year results presentation. Before discussing the highlights, let me remind you of what truly sets Technip Energies apart. We are focused on delivering controlled quality growth underpinned by our robust selectivity-driven backlog and differentiated market positioning. We are frontrunners in energy and decarbonization, harnessing our distinct strength and driving transformation to unlock superior profitability. Our strong net cash balance sheet gives us real clout and we consistently convert most of our profits into free cash flow. And as we execute our business strategy, channeling capital into dividend growth and value enhancing investments, we are accelerating value creation for our shareholders. Turning to the highlights. 2025 was a year of successful delivery. We demonstrated strong execution across our global portfolio. We strategically positioned the company for sustained, profitable growth, and through some disciplined capital deployment, we enhanced our earnings quality, reinforcing the resilience and stability of our business model. In terms of headline figures, 2025 marks our strongest year yet, with revenue and recurring EBITDA both rising by 5% to reach new highs at $7.2 billion and $638 million, respectively. Both our business segments delivered year-over-year growth in EBITDA. With a robust performance for project delivery, and solid margin expansion in TPS to above 14%. Free cash flow excluding non-recurring items increased by 5%, reaching 578 million euros. And consistent with our capital allocation framework, we are proposing a dividend of 1 euro per share, up 18%, and a $150 million share buyback program. In summary, a solid 2025 that sets a strong foundation for us to achieve our growth objectives. Let me turn now to our execution, beginning with project delivery. Our portfolio continues to demonstrate the power of replication, modularization, digital tools, and we are executing with disciplined management of scope, cost, and risk. To provide perspective into the scale of our operations, at 10, our workforce now exceeds 18,000. Yet, we take on responsibility and care for more than 100,000 across our sites. In 2025 alone, we surpassed 320 million worked hours with zero fatalities. We strive to be the industry's reference on safety. Operationally, across our major projects, we achieved strong progress on LNG execution, including NFE and NFS in Qatar, advancement towards completion of key downstream and petrochemical assets, and solid early progress on decarbonization projects, including Net Zero Decide and Blue Point No. 1. This performance reflects the culture of operational discipline that defines Technip Energies. And as you know, excellence in execution is the cornerstone of our value proposition and a prerequisite to our continued commercial success. Staying on the execution theme, but now spotlighting TPS, an important component of our equity story. In 2025, TPS delivered solid EBDA margins, advancing by 140 basis points year-over-year to more than 14%. This improvement was driven by a strong performance in our product activities, including ethylene furnace deliveries. Furthermore, Catalyst's supply and strength in project management consultancy also contributed to this margin expansion. What this performance clearly demonstrates is the potential of TPS to drive margin accretion and improved quality of earnings for the group. 2025 was further distinguished with the completion of our first major acquisition. This transaction exemplifies our disciplined capital allocation strategy to enhance our technology and products offering. It extends TEN's capability across material science and the catalyst value chain and enhances our ability to deliver high-performance, process-critical solutions to our clients. With around 70% of its revenues tied to operating expenditure, AMNC materially expands our TPS offering across the asset lifecycle. In terms of financial impact, we closed the transaction on December 31st, and the cash outlay is reflected in our year-end balance sheet. As a result, TPS will benefit from a full-year contribution in 2026, which we anticipate exceeding €200 million in revenue with EBITDA margins of around 25%. In summary, AAM MC is immediately accretive and accelerates our TPS growth strategy. It benefits from positive long-term market trends and establishes a strong platform to unlock further value for our stakeholders.