Technip Energies unveils 2025 and 2028 outlook

By Anna Peverieri

Nov 21 (Reuters) - French infrastructure and technology company Technip Energies announced its short-term and mid-term financial targets at its Capital Market Day on Thursday, unveiling its strategy for the next four years.

The company, which specialises in engineering and technology for the energy sector, expects 2025 Project Delivery revenue of between 5.0 billion euros and 5.4 billion euros ($5.27 billion and $5.69 billion), with a core profit (EBITDA) margin of around 8%.

For its Technology, Product & Services segment, the group announced 2025 targets for an EBITDA margin of 13.5% on revenue of 2.0 billion to 2.2 billion euros. The 2025 PD and TPS segments growth is underpinned by backlog strength and commercial opportunity set, the management said during a press call.

"Technip Energies' commercial pipeline of more than 75 billion euros through to the end of 2026 is well balanced by market and geography," the company added in a statement. North America and Europe each comprise 20%, the Middle East 30%, India 5%, the Asia-Pacific region 10%, and the rest of the world 15%.

The group, which lifted its full year guidance in October, also revealed its 2028 financial outlook. In the PD segment, it guides for an EBITDA margin of 8.5% revenue above 6.0 billion euros. Additionally, in the TPS segment it expects an EBITDA margin of 14.5% on revenue of 2.6 billion euros.

Asked about the United States and the posture of President-elect Donald Trump towards the green energy transition, CEO Arnaud Pieton defined the U.S. as "pro-business" country.

"I do not think the United States will allow itself to fall behind in the race for energy transition, nor will it let China gain an advantage or a lead that cannot be overcome. Therefore, I anticipate that the future administration will want to stay competitive in this arena," Pieton added.

During his campaign, Trump vowed to reverse dozens of environmental policies deemed onerous by oil and gas drillers.

The group forecasted a cumulative free cash flow of between 2.2 billion and 2.6 billion euros for 2024-2028 and outlined its dividend strategy, planning to pay out between 25% and 35% of free cash flow, excluding working capital.

($1 = 0.9490 euro)

(Reporting by Anna Peverieri; editing by Jonathan Oatis)

((Anna.Peverieri@thomsonreuters.com;))