Technip Energies NV (THNPF) (Q3 2024) Earnings Call Highlights: Strong Revenue Growth and ...

GuruFocus News
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In This Article:

  • Revenue Growth: 13% year-over-year increase, reaching EUR 5 billion for the first nine months of 2024.

  • 2024 Revenue Guidance: Upgraded by 5% at the midpoint to a range of EUR 6.5 billion to EUR 6.8 billion.

  • EPS Growth: Increased by 35% year-over-year.

  • Net Profit: EUR 280 million, up 35% year-over-year.

  • Free Cash Flow: EUR 360 million, excluding working capital and provisions.

  • Gross Cash: EUR 3.5 billion.

  • Recurring EBIT: Increased by 12% year-over-year to EUR 257 million.

  • Order Intake: EUR 4.8 billion for the first nine months.

  • Project Delivery Revenue: Up 17% year-over-year to EUR 3.5 billion.

  • EBIT Margins: Solid performance with margins around 100 basis points above EBIT margins for project delivery.

  • Backlog: EUR 14.2 billion, up 2% since the beginning of the year.

  • TPS Revenue: Up 3% year-over-year.

  • Adjusted Recurring Margin: Increased by 20 basis points to 12.8% for TPS.

  • Shareholder Returns: Over EUR 170 million returned through dividends and buybacks in 2024.

  • Effective Tax Rate: Increased guidance to 29% to 33% for full year 2024.

Release Date: October 31, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • Technip Energies NV (THNPF) reported robust revenue growth of 13% year-on-year, driven by strong project delivery and strategic initiatives.

  • The company upgraded its 2024 revenue guidance by 5% at the midpoint, indicating a new range of EUR 6.5 billion to EUR 6.8 billion.

  • EPS grew by 35%, benefiting from increased revenues and higher financial income.

  • Technip Energies NV (THNPF) secured significant projects, including a major LNG export terminal in the US and a green ammonia plant in India, enhancing its backlog for 2025 and beyond.

  • The completion of a share buyback program and planned cancellation of treasury shares returned over EUR 170 million to shareholders, demonstrating a commitment to shareholder returns.

Negative Points

  • The adjusted order intake of EUR 4.8 billion in the first nine months was below expectations, tracking in line with revenues.

  • The company's effective tax rate increased to a range of 29% to 33% due to changes in earnings mix and potential French tax impacts.

  • Non-recurring expenses rose to EUR 60 million, attributed to development projects and new business ventures, impacting overall profitability.

  • The TPS segment experienced a 7% year-to-date backlog decline due to the absence of significant awards in Q3.

  • Concerns were raised about potential delays in LNG projects due to a forecasted supply glut around 2028, which could impact future project timelines.

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