TechnipFMC PLC Q1 2025 Earnings Call Summary

The following is excerpted from the question-and-answer section of the transcript.

Question: J. David Anderson - Barclays Capital Inc. - Analyst : US Gulf is a fairly small component of your Subsea opportunities chart. But just wondering if you think that is pushed out because of some of the higher development costs, either with tariffs or wellheads or whatnot?On the other hand could Petrobras push forward even faster with that growing project list? Intuitively I was thinking some of these orders could get pushed out to '26 but you don't seem very concerned.

Question: J. David Anderson - Barclays Capital Inc. - Analyst : Appreciate the color. We are facing another downturn, you've been here before, we've all been here before, but you haven't had this iEPCI model really as fully comprehensive and this is today. I'm just curious what, if anything your customers are asking of you and what you're trying to do for them? I mean, we're clearly -- if you -- you're clearly not talking pricing concessions considering the current market structure. But with most of your orders point from direct awards, is there anything you could do to push forward those environments? Or is it just simply about projects certainty like you talked about and customers just need to look through the oil market uncertainty? Is there anything you can kind of do here, I'm just I'm curious about.

Question: Arun Jayaram - J.P. Morgan Securities LLC - Analyst : Doug, last quarter, you mentioned how you thought 2026 would be kind of a significant year for Subsea orders with further margin expansion potential. I think you just mentioned in response to Dave's question that the tenor of your conversations with customers really hasn't changed too much. So my question is, how do you -- how would you gauge the order outlook for 2026? And when do you think you'd be in a position maybe to provide maybe even a soft outlook for 2026 relative to the $10 billion per annum orders you've been clipping over the last 3 years, including 2025?

Question: Arun Jayaram - J.P. Morgan Securities LLC - Analyst : Great. That's super helpful. Maybe my follow-up, we were pleasantly surprised the tariff impact is very, very minor, call it, less than $20 million. So maybe just if you could dig down a little bit, is this a function of FTI? Obviously, a lot of local content. Is the relatively low number a function of your ability to adjust the supply chain? Or is this maybe embedded in some of your contractual agreements with customers where you were not taking on this risk? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. APRIL 24, 2025 / 12:30PM, FTI.N - Q1 2025 TechnipFMC PLC Earnings Call

Question: Ati Modak - Goldman Sachs & Company, Inc. - Analyst : Doug, you mentioned that most of your conversations are for 2028 and beyond. I'm just curious what those customers are saying with respect to those long-dated projects. Has the current environment affected that at all versus what you were hearing earlier or is it steady?

Question: Ati Modak - Goldman Sachs & Company, Inc. - Analyst : That's very helpful. And then on the Surface Technologies side, just wondering if there's any sensitivity around that in the current environment?

Question: Mark Wilson - Jefferies - Analyst : I'd like to ask Doug regarding which, if any of those subsea markets that you show, you're seeing competition to your offering? And here, I'm speaking specifically to not only the iEPCI, but the Subsea 2.0 setup because clearly that's been adopted by pretty much all the major deepwater companies, Exxon, Shell, Total, et cetera. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. APRIL 24, 2025 / 12:30PM, FTI.N - Q1 2025 TechnipFMC PLC Earnings Call But I note that all six of the opportunities in Brazil are with Petrobras, which obviously has its own standard setup and that works for it, but you've seen a Subsea 2.0 into Brazil now with Shell. What is the potential for take-up on a broader scale in Brazil? And what broader competition are you seeing in other areas?

Question: Scott Gruber - Citi Investment Research - Analyst : Yes. On the project outlook list, there's a large award for Petrobras simply as revitalization of field. Is it a bunch of step-outs? Is there intervention component? Just what does that refer to?

Question: Scott Gruber - Citi Investment Research - Analyst : And does it involve new technology that they're looking at applying? Or just to kind of feel the configuration. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. APRIL 24, 2025 / 12:30PM, FTI.N - Q1 2025 TechnipFMC PLC Earnings Call

Question: Scott Gruber - Citi Investment Research - Analyst : Okay. We'll continue to watch. I had another kind of execution or efficiency question. As you've shifted towards Subsea 2.0, you've been reconfiguring the plants, and based on past comments you have been finding some surprising gains as you do so. Where do you stand on that process, does the plant reconfiguration in tandem with product flow, does it happen in anticipation of greater Subsea 2.0 load? Just some color on kind of how you're reconsidering the plants and the efficiency gains you're finding would be great.

Question: Scott Gruber - Citi Investment Research - Analyst : The flow through the [plant], yes, the flow through the plants -- means previous one, you had some kind of at each station like targets with gains and you're beating that and just some of that color, I think it's interesting.

Question: Victoria McCulloch - RBC Capital Markets - Analyst : Just one question remaining from me today. We saw quite a wide range of pricing from the Petrobras awards at the start of the year. Obviously the macro changed a quite a lot from that time. Any read across we can take from that? Is that a reflection of some of the capacity constraints that you are dealing with in sort of 25-26, or risk appetite you approach these contracts with?