TechnipFMC plc (FTI): PESTLE Analysis [Nov-2025 Updated]

You're looking for a clear, actionable breakdown of the forces shaping TechnipFMC plc (FTI), and honestly, the PESTLE framework is the best way to map near-term risks and opportunities. The oil and gas services sector is in a fascinating pivot, so understanding these external pressures is defintely key to any investment decision.

TechnipFMC is navigating a dual mandate: capturing a massive deepwater upcycle while pivoting to a low-carbon future. The company is set to exceed $10 billion in Subsea inbound orders for the 2025 fiscal year, fueled by its integrated technology. But still, this growth is shadowed by geopolitical instability and the rising cost of capital. You need to focus on how their technology-driven margin expansion offsets the macro-headwinds in a global energy market that is investing a record $3.3 trillion in energy this year.

Political

The political landscape is always volatile for a global operator like TechnipFMC. When you have major subsea projects in regions like West Africa or Brazil, any shift in local regulatory stability or international trade policy can instantly change your risk profile. Sanctions on key oil-producing nations limit market access, and US-China trade relations continue to affect global supply chains for specialized equipment.

This is why diversification across geographies is a core risk mitigation strategy. Honestly, you can't hedge against a sudden coup, but you can spread your exposure. TechnipFMC's ability to secure large, long-term contracts in diverse regions, like the significant awards in Brazil, helps stabilize the revenue stream against regional political shocks.

Economic

The economic environment is directly tied to the upstream sector's willingness to spend. Global oil and gas capital expenditure (CapEx) is estimated at around $654.14 billion in 2025, which drives new orders for TechnipFMC. We've seen CapEx cycles accelerate as oil prices stabilize, but still, inflation is a real headwind.

For example, the cost of steel and specialized equipment has risen, directly squeezing margins on fixed-price contracts. Here's the quick math: TechnipFMC is guiding for full-year 2025 Free Cash Flow (FCF) of between $1.3 billion and $1.45 billion, a strong signal of operational efficiency, but that FCF is constantly under pressure from inflationary material and labor costs. Plus, US interest rate hikes affect project financing costs for their clients, which can delay final investment decisions (FIDs).

Sociological

The 'S' in Environmental, Social, and Governance (ESG) is becoming a major factor, plus the demand for highly specialized engineers is intense. Public pressure for a sustainable energy transition is rising, and investors are shifting their focus toward ESG metrics. This means TechnipFMC needs to compete globally for the best talent in subsea engineering.

This talent scarcity is a major operational risk. If onboarding takes 14+ days, churn risk rises for critical personnel. Also, local content requirements in host countries mean the company must invest heavily in local training and supply chains, which adds complexity but secures long-term operating licenses.

Technological

Technology is where TechnipFMC truly differentiates itself. Their Subsea 2.0 initiative-simplifying and standardizing subsea production systems-is a game-changer for project economics. It cuts complexity and installation time, which is a massive competitive advantage and a key margin driver. They are constantly innovating to make deepwater projects viable at lower oil prices.

This focus is paying off: the company's total backlog grew to a robust $16.8 billion as of Q3 2025, providing strong revenue visibility. Advancements in all-electric subsea systems reduce emissions, and digitalization and remote operations improve efficiency, helping to lock in their market share.

Legal

Operating globally means navigating a patchwork of laws, and honestly, non-compliance is not an option. TechnipFMC must maintain strict compliance with international anti-corruption laws, like the Foreign Corrupt Practices Act (FCPA), and stringent offshore safety regulations, which naturally increase operational costs.

The legal costs associated with maintaining compliance in high-risk regions are significant, but they are a necessary cost of doing business. Varying national content and taxation laws across jurisdictions also require constant legal oversight. Any legal misstep can lead to massive fines and reputational damage, so this is a permanent, high-priority cost center.

Environmental

The environmental block is the fastest-moving area. Global energy investment is expected to hit a record $3.3 trillion in 2025, with two-thirds of that (around $2.2 trillion) going into clean technologies. TechnipFMC is heavily involved in the energy transition, moving into offshore wind and carbon capture and storage (CCS) technology expertise.

This is a huge opportunity, but still, they must manage the environmental impact of their core oil and gas business, facing increasing regulation on methane emissions and strict decommissioning rules for old assets. Pressure to reduce the carbon footprint of the supply chain is also intense. Finance: track the percentage of new contract awards related to non-fossil fuel projects by Friday.

TechnipFMC plc (FTI) - PESTLE Analysis: Political factors

The political landscape is always volatile for a global operator like TechnipFMC. When you have major subsea projects in regions like West Africa or Brazil, any shift in local regulatory stability or international trade policy can instantly change your risk profile. This is why diversification across geographies is a core risk mitigation strategy.

Geopolitical instability impacts project execution and cost

Geopolitical friction is a primary driver of operational risk in 2025, particularly in the energy sector. Conflicts like the ongoing Russia-Ukraine war and the Israel-Hamas war fuel regional instability, directly impacting energy security and pricing. For TechnipFMC, this volatility influences the capital expenditure (CapEx) decisions of major oil companies, but also introduces direct project execution risk. For example, a temporary halt at a key Russian export hub like the Novorossiysk port in November 2025, following a drone strike, shows how quickly supply chain choke points can be disrupted, driving up crude prices and increasing the cost of vessel operations and materials globally.

Here's the quick math: higher crude prices generally boost client confidence for deepwater investments, which is great for the Subsea segment's order book, but the cost of steel, specialized components, and vessel fuel also rises. This compresses project margins unless contracts have strong escalation clauses. TechnipFMC's total company backlog stood at a robust $16.81 billion as of Q3 2025, but a portion of that is always exposed to these unforeseen political execution risks.

US-China trade relations affect global supply chains

The strategic decoupling between the United States and China, which escalated in 2025, creates a complex environment for a company that sources and manufactures globally. While a 'trade truce' was announced in late 2025, temporarily pausing some escalatory measures, the underlying competition over technology and supply chain dominance persists.

The primary concern is the potential for new tariffs or export controls on critical components used in TechnipFMC's advanced subsea production systems or Surface Technologies equipment. The US administration's focus on tightening export controls on emerging technologies like semiconductors, as seen in 2025, forces global manufacturers to rethink sourcing. The risk is not just tariffs, but the fragmentation of the global manufacturing base, which can delay project timelines and increase the cost of goods sold (COGS). You defintely need a dual-sourcing strategy for high-value components.

Government support for offshore energy projects varies

Government policy is a critical lever, shifting capital toward specific energy projects, both traditional and new. This political support is a major opportunity for TechnipFMC, particularly in the new energy space where the company is leveraging its subsea expertise.

• Norway: The Norwegian government, through Innovation Norway, provided support for TechnipFMC's 'Deep Purple' pilot project, which focuses on offshore hydrogen generation and storage. This backing validates the company's pivot to new energy solutions.
• United Kingdom: The UK's commitment to net-zero emissions has driven the Northern Endurance Partnership (NEP) for Carbon Capture and Storage (CCS). TechnipFMC is a key supplier for the offshore storage site, providing integrated Engineering, Procurement, Construction, and Installation (iEPCI™) services.
• United States: The Inflation Reduction Act (IRA) in the US provides significant incentives for renewables and decarbonization, creating a favorable political and economic tailwind for the new energy segment.

This political support helps to underwrite the risk of new technologies, directly contributing to the company's long-term revenue visibility. The Subsea segment's full-year 2025 revenue is guided to be between $8.4 billion and $8.8 billion, a portion of which is underpinned by these politically-driven, long-cycle projects.

Sanctions on key oil-producing nations limit market access

US and international sanctions on major oil-producing nations, notably Russia, Iran, and Venezuela, represent a hard-stop on market access for TechnipFMC. These sanctions, which were intensified with new US measures on Russian oil firms like Rosneft and Lukoil in October 2025, are designed to limit their oil revenues and export volumes.

While TechnipFMC cannot directly engage in sanctioned markets, the indirect effect is a positive one for their core business: reduced global supply from these nations tightens the market, pushing up crude prices. Higher crude prices incentivize exploration and production (E&P) spending by non-sanctioned clients like Petrobras in Brazil and ExxonMobil in Guyana, which are major customers. This is why TechnipFMC expects to receive more than $10 billion in Subsea contracts during 2025.

The political environment in 2025 is a mix of high-impact risks that require careful supply chain management, balanced by strong government policy support for the energy transition projects that TechnipFMC is uniquely positioned to deliver.

TechnipFMC plc (FTI) - PESTLE Analysis: Economic factors

The economic environment is directly tied to the upstream sector's willingness to spend. We've seen CapEx cycles accelerate as oil prices stabilize, but still, inflation is a real headwind. For example, the cost of steel and specialized equipment has risen, directly squeezing margins on fixed-price contracts. Here's the quick math: a 1% rise in material costs on a $500 million contract is a $5 million hit to gross profit.

Global oil and gas capital expenditure (CapEx) drives new orders.

TechnipFMC's core business is fundamentally driven by the capital expenditure (CapEx) decisions of global oil and gas operators. While the overall global upstream oil and gas investment is set to decline by approximately 4% in 2025 to around $565 billion, the company's focus on deepwater and subsea infrastructure provides a significant buffer. The International Energy Agency (IEA) notes that a large portion of the overall reduction comes from US independent shale producers, a market segment where TechnipFMC has a smaller footprint for its Subsea segment.

The company's commercial success is evident in its order intake, which has largely decoupled from the broader CapEx slump. The company is confident that its Subsea orders will exceed $10 billion in 2025, driven by major integrated Engineering, Procurement, Construction, Installation, and Commissioning (iEPCI™) awards in high-potential basins like deepwater Latin America, including its seventh award from ExxonMobil in Guyana for the Hammerhead project. This strong order flow has pushed the total company backlog to over $16.8 billion as of the third quarter of 2025. Strong backlog is defintely a good sign.

Inflationary pressures increase material and labor costs.

Inflation remains a persistent challenge, threatening to erode the profitability of long-cycle projects. The oil and gas industry is facing cost increases driven by global supply chain bottlenecks and trade policy. For instance, import tariffs on key materials in the US are projected to increase costs by 2% to 5%, squeezing margins across the sector. This is not just a materials issue; labor costs are also rising, particularly for specialized engineers and field personnel, as the industry competes for talent.

TechnipFMC mitigates this risk through its iEPCI™ model, which allows for better control over the supply chain and earlier procurement of long-lead items. Still, the impact is clear: higher capital expenditure for clients means projects need a stronger economic case to reach the Final Investment Decision (FID), and for TechnipFMC, it means constant pressure on the cost of goods sold (COGS).

US interest rate hikes affect project financing costs.

The cost of capital for massive offshore projects is highly sensitive to US interest rates, as many global energy deals are financed in US dollars. The Federal Reserve's policy shift in 2025, moving to lower rates, has been a positive development for project economics. Following the second rate cut in October 2025, the target range for the federal funds rate was reduced to 3.75% to 4%. This easing cycle lowers the borrowing costs for operators, making multi-billion dollar offshore developments more financially viable and increasing the likelihood of new project sanctions-which directly translates to new orders for TechnipFMC.

Lower interest rates support the discounted cash flow (DCF) valuation of long-term assets, making the high upfront CapEx of subsea projects more palatable for clients. It is a clear tailwind.

Strong US dollar impacts international revenue translation.

As a global company, TechnipFMC is highly exposed to foreign exchange (FX) volatility, a critical factor given that an estimated 95 percent of its total Company revenue in 2025 is generated from activity outside of the US land market. When the US dollar strengthens, international revenues earned in local currencies (like the Brazilian Real or Norwegian Krone) translate into fewer US dollars on the income statement.

This currency headwind is a tangible financial risk. For example, in the third quarter of 2025 alone, the company reported a foreign exchange loss of $12.5 million. This loss, while often excluded from adjusted earnings before interest, taxes, depreciation, and amortization (Adjusted EBITDA) for operational clarity, remains a real cash flow impact. The ongoing strength of the US dollar, driven by global economic uncertainty, will continue to be a drag on reported earnings.

• Monitor the US Dollar Index (DXY) for further strengthening.
• FX losses directly reduce reported GAAP net income.
• Hedging strategies are crucial to protect project margins.

TechnipFMC plc (FTI) - PESTLE Analysis: Social factors

The 'S' in ESG is becoming a major factor, plus the demand for highly specialized engineers is intense. TechnipFMC needs to compete globally for the best talent, and that means offering competitive packages and a clear path in the energy transition. If onboarding takes 14+ days, churn risk rises for critical personnel.

Public pressure for sustainable energy transition is rising

Public and political pressure for a sustainable energy transition is no longer a fringe issue; it's a core driver of capital allocation. This pressure forces TechnipFMC to accelerate its New Energy focus on technologies like carbon capture and storage (CCS), floating wind, and hydrogen. For instance, the company is actively involved in offshore CCS projects, leveraging its subsea expertise to create a dual benefit of continued energy production alongside environmental responsibility. This strategic pivot is defintely a necessity, not an option, to maintain social license to operate.

Here's the quick math on their environmental commitment, which directly addresses social concerns:

• Target a 50% reduction in Scope 1 and 2 emissions by 2030, benchmarked against a 2017 re-baseline.
• Achieved nearly 50% of their three-year goal (2024-2026) for increasing renewable energy usage in the first year of the scorecard (2024).

Talent scarcity in specialized subsea engineering fields

The specialized nature of subsea engineering-the core of TechnipFMC's business-creates a perpetual talent scarcity challenge. The company had a total employee count of 25,304 as of year-end 2024, but the need for highly skilled engineers in integrated projects (iEPCI™) continues to outpace the supply of experienced professionals. This scarcity is a direct cost driver, pushing up compensation for niche roles. To combat this, TechnipFMC is investing in localized training, which is a smart, long-term talent pipeline strategy.

One clean one-liner: You can't deliver a $14.9 billion Subsea backlog without the right people.

Focus on local content requirements in host countries

Operating in global deepwater basins, TechnipFMC faces stringent local content requirements (LCRs) from host governments, particularly in emerging energy markets like Namibia and Brazil. Meeting these requirements is critical for securing major contracts and maintaining strong government relations. The company's strategy is to turn this regulatory risk into a social opportunity by investing in local workforce development.

For example, in Namibia, TechnipFMC was recognized as a Local Content Champion at the Namibia Energy Connect 2025. Their Subsea Engineering course at the Namibia University of Science and Technology (NUST) is a concrete example of this commitment. The program's enrollment had an outstanding 51% female participation, directly addressing both local content and diversity goals. This investment in human capital is a non-negotiable cost of doing business in frontier markets.

Shift in investor focus toward Environmental, Social, and Governance (ESG)

Investor scrutiny on ESG factors is at an all-time high in 2025. Institutional investors are using ESG metrics as a proxy for long-term risk management and operational excellence. For TechnipFMC, this focus is tied directly to executive compensation; sustainability is a measurable performance metric in their annual cash incentive plan. This alignment ensures that 'S' factors, like diversity and community impact, are treated as financial imperatives.

The company's commitment to shareholder returns is strong, with a plan to distribute at least 70 percent of free cash flow to shareholders in 2025, a financial outcome that is underpinned by their strong operational and ESG performance. Their 2024-2026 Sustainability Scorecard provides clear, measurable targets that address stakeholder concerns.

Here is a snapshot of the 'S' and 'G' components driving investor confidence:

TechnipFMC plc (FTI) - PESTLE Analysis: Technological factors

Technology is where TechnipFMC truly differentiates itself. Their Subsea 2.0 initiative-simplifying and standardizing subsea production systems-is a game-changer for project economics. It cuts complexity and installation time, which is a massive competitive advantage. They are defintely innovating to make deepwater projects viable at lower oil prices.

Subsea 2.0 platform standardizes equipment for cost reduction

The Subsea 2.0 platform is TechnipFMC's core technological lever, moving the industry from custom-built, long-cycle projects to standardized, short-cycle manufacturing. This shift is powerful because it drastically reduces the number of unique components and interfaces, streamlining the entire subsea architecture. When combined with their integrated Engineering, Procurement, Construction, and Installation (iEPCI™) model, it allows a field design to remove over half of the subsea structures while maintaining the same operability. For clients, this translates directly to better project economics.

Here's the quick math on the impact of Subsea 2.0 and iEPCI:

• Schedule Reduction: Up to a 6-month reduction in project schedule.
• Capital Expenditure (CAPEX) Savings: Up to a 10% reduction in CAPEX for the all-electric subsea production systems that leverage this platform.
• Break-even Price: Enabling deepwater projects, like the Shell Kaikias development, to achieve a break-even price of less than $30/bbl.

This technological advantage is a primary driver for the company's robust order book. For the full fiscal year 2025, Subsea inbound orders are anticipated to exceed $10 billion, demonstrating strong market adoption of this standardized, cost-effective approach. That's a clear signal the market is buying into the simplified subsea paradigm.

Digitalization and remote operations improve efficiency

Digitalization is the connective tissue for TechnipFMC's integrated offerings, enabling remote operations and improving project execution across both Subsea and Surface Technologies segments. The use of digital twin technology-a virtual replica of a physical system-allows for real-time monitoring, predictive maintenance, and remote control of assets, which is crucial for reducing non-productive time (NPT).

The company's iProduction platform, which takes the Subsea playbook to onshore production, is a concrete example of this digital leverage. The integrated offering operates under a single digital interface, helping clients:

• Accelerate Time to First Oil: Achieve a greater than 30% acceleration in time to first oil.
• Reduce Operational Costs: Realize up to $1 million in savings per well through the integrated Surface Technologies offering.

This push toward remote monitoring and control, often involving unmanned fields, is a key strategic move that cuts down on personnel risk and logistics costs, which are significant expenses in the energy sector.

Advancements in all-electric subsea systems reduce emissions

The push for all-electric subsea systems is a major technological trend that aligns with the energy transition and is a direct extension of the Subsea 2.0 philosophy. By replacing traditional hydraulic components with electric actuators, the system removes the need for hydraulic lines and simplifies umbilicals (the cables that run from the surface to the seabed). This simplification is the key to reducing the overall infrastructure footprint and installation time.

A significant milestone in 2025 was the selection of TechnipFMC to deliver the first all-electric iEPCI™ project for Carbon Capture and Storage (CCS) for the Northern Endurance Partnership (NEP). This project leverages their proprietary CO2.0® technology for subsea carbon transportation and storage. The all-electric design is critical to:

• Enable Longer Tie-back Distances: The removal of hydraulic power limitations allows for a 4X+ increase in subsea tie-back reach, unlocking previously uneconomical reserves.
• Reduce Local Emissions: The all-electric systems are designed to achieve a 100% reduction in greenhouse gas (GHG) emissions from the subsea production system itself, by removing the need for hydraulic fluid and associated power generation.

Robotics and autonomous underwater vehicles (AUVs) enhance inspection

TechnipFMC's subsidiary, Schilling Robotics, is a leader in subsea robotics, providing the core technology for inspection, maintenance, and repair (IMR) operations. This is not just about using robots; it is about accelerating the industry's shift toward 'supervised autonomy.'

The company's advanced Remotely Operated Vehicles (ROVs) and tooling systems, such as the GEMINI® manipulators, are rated for depths up to 4,000 meters. The key technological benefit here is speed and precision. The integration of advanced manipulators and tooling is designed to reduce task time from hours to mere minutes, ensuring predictable results and minimizing the risk of human error in complex deepwater environments.

The table below summarizes the core technological impact points, which are driving the efficiency and margin expansion in the Subsea segment, which is expected to see a 2025 adjusted EBITDA margin in the range of 19% to 20%.

TechnipFMC plc (FTI) - PESTLE Analysis: Legal factors

Operating globally means navigating a patchwork of laws, and honestly, non-compliance is not an option. The legal costs associated with maintaining compliance in high-risk regions are significant, but they are a necessary cost of doing business. Any legal misstep can lead to massive fines and reputational damage.

Compliance with international anti-corruption laws (e.g., FCPA)

You must understand that the legacy of past corruption investigations still dictates a hyper-vigilant compliance environment today. TechnipFMC plc operates under the shadow of prior settlements with multiple authorities, which means the cost of compliance is baked into the operating model. The company must strictly adhere to the U.S. Foreign Corrupt Practices Act (FCPA), the U.K. Bribery Act of 2010, and French anti-corruption laws.

To be fair, the company has paid substantial penalties to resolve historical issues. For instance, the combined criminal fine with the U.S. Department of Justice and Brazilian authorities totaled over $296 million in 2019. More recently, the company was responsible for a fine of €179.45 million to the French Parquet National Financier (PNF) related to historical subsea projects, which was paid in installments through July 2024. This history means that every contract, especially in high-risk jurisdictions, requires intense due diligence and compliance oversight, which slows down the sales cycle but protects the balance sheet from future nine-figure liabilities.

Varying national content and taxation laws across jurisdictions

The global nature of the subsea business means local laws on content and taxation are a major strategic variable. These rules are not just bureaucratic hurdles; they directly impact project profitability and supply chain strategy. This is why you must constantly adapt your operating model to satisfy local requirements.

Brazil, a core market for TechnipFMC, provides a clear example. The new Law 15.075/2024, effective in December 2024, significantly changed the local content (LC) landscape. This law now allows for the transfer of LC surpluses between different exploration and production contracts held by the same operator, which is a big win for flexibility. Plus, the law grants incentives like accelerated depreciation for new vessels built in Brazilian shipyards that meet minimum LC levels, directly influencing the company's capital investment decisions in that country.

Here's the quick math on tax: TechnipFMC's 2025 financial guidance projects an expected consolidated Effective tax rate in the range of 28% to 32%. This wide range reflects the complexity of operating across dozens of jurisdictions, each with unique tax codes, exemptions, and local content compliance penalties that can shift the effective rate.

Stringent offshore safety regulations increase operational costs

Safety is non-negotiable, and regulatory bodies worldwide are pushing for stricter standards, especially in deepwater and harsh environments like the North Sea and the U.S. Gulf of Mexico. The Bureau of Safety and Environmental Enforcement (BSEE) in the U.S., for example, is continually enhancing its oversight, with a total FY 2025 budget request of $252.6 million to support offshore safety and environmental enforcement programs, which signals increased regulatory scrutiny for all operators and service providers.

For TechnipFMC, compliance translates into tangible capital expenditures (CapEx) and operating expenses (OpEx). The company's full-year 2025 guidance for Capital expenditures is approximately $340 million. A portion of this CapEx is defintely allocated to fleet maintenance and vessel upgrades to meet evolving safety and environmental standards, such as those that reduce vessel downtime and ensure compliance with new well control rules. You can see this impact in the Subsea segment, where Q1 2025 results noted a sequential decline in activity partly due to reduced fleet availability from higher scheduled maintenance-a direct cost of maintaining regulatory readiness.

Intellectual property protection for proprietary subsea technology

The core of TechnipFMC's competitive advantage lies in its proprietary technology, specifically the integrated Engineering, Procurement, Construction, and Installation (iEPCI™) model and the standardized Subsea 2.0® platform. Protecting this intellectual property (IP) is a critical legal task that underpins future profitability.

The company's patent portfolio is heavily focused on subsea and climate change related technologies. In Q2 2024, the company saw a 0.94% increase in patent grants compared to Q1 2024, highlighting a sustained investment in IP defense. The risk factors explicitly call out the potential for 'the cumulative loss of major contracts, customers or alliances and unfavorable credit and commercial terms of certain contracts' if their new technologies and intellectual property are not adequately protected.

The primary IP jurisdictions reflect their market focus and technology origins:

• United States (US): Accounts for 29% of their top granted patents.
• European Patent Office (EPO): Accounts for 24% of their top granted patents.
• Australia (AU): Accounts for 15% of their top granted patents.

This geographic spread shows where the company is spending its legal resources to maintain its technology moat against competitors.

TechnipFMC plc (FTI) - PESTLE Analysis: Environmental factors

The environmental block is the fastest-moving area. TechnipFMC is heavily involved in the energy transition, moving into offshore wind and carbon capture. This is a huge opportunity, but still, they must manage the environmental impact of their core oil and gas business. Finance: track the percentage of new contract awards related to non-fossil fuel projects by Friday.

Increasing regulation on methane emissions from offshore operations.

The regulatory environment is tightening fast, especially around methane, which has a warming potential roughly 28 times that of CO2. The new EU Methane Regulation (EU 2024/1787) is the game-changer here, with implementation beginning in 2025. This isn't just an EU problem; it pushes requirements down the supply chain to every global operator exporting to the region, which is a big part of TechnipFMC's customer base. The most immediate compliance deadline for operators is submitting their Leak Detection and Repair (LDAR) programs by May 5, 2025, for existing sites. If your clients don't comply, they face penalties, and that means they need our technology now.

TechnipFMC is positioned to capitalize on this with its digital offerings, particularly the E-Mission™ Suite. This configurable digital ecosystem is designed to help clients achieve net zero by identifying the root causes of greenhouse gas (GHG) emission sources, including methane leaks, and moving from reactive to preventative maintenance. It's a direct solution to a major regulatory headache.

Demand for carbon capture and storage (CCS) technology expertise.

CCS is no longer a niche concept; it's a massive commercial driver. TechnipFMC's subsea expertise gives them a natural advantage in the offshore storage market, which is where the largest volumes of CO2 will be permanently sequestered. This is where the money is right now. Here's the quick math: the company secured a 'large' contract for the Northern Endurance Partnership's all-electric CCS project, valued between $500 million and $1 billion, recorded in Q3 2024 inbound orders.

The overall market confidence is clear in the company's guidance. Subsea inbound orders are expected to exceed $10 billion in 2025, and a significant portion of that growth is tied to New Energy solutions like CCS. To keep this momentum, the company's 2024-2026 Sustainability Scorecard targets introducing three new fully qualified products across the New Energy technology portfolio by the end of 2026. That's a clear product roadmap for a growing revenue stream.

Strict waste management and decommissioning rules for old assets.

The industry is aging, and decommissioning is a non-negotiable cost and a growing service market. Regulators are increasingly strict on the disposal of subsea infrastructure, pushing for higher recycling and material reuse rates. TechnipFMC offers 'OWI Decommissioning and Abandonment' services, which is a key part of their 'Life of field services' segment. This service line directly addresses the regulatory and public pressure to clean up old fields.

Their internal performance reflects this focus on material circularity. The 2024 UK Annual Report, released in Q1 2025, showed the company's waste recycling/material reuse ratio improved to 71%, up from 70% in 2023. That one percentage point improvement shows a continuous, measurable effort to comply with and exceed waste management standards, which ultimately lowers long-term project liability for their clients.

Pressure to reduce the carbon footprint of the supply chain.

The pressure to decarbonize the supply chain is a cost-management challenge, not just a PR exercise. TechnipFMC is a key part of their clients' Scope 3 emissions (emissions from assets not owned or controlled by the reporting entity, but that indirectly affect its value chain), so their own footprint matters a lot. They have a public target to reduce their Scope 1 and Scope 2 greenhouse gas (GHG) emissions by 50% by 2030, from a 2017 baseline. This is a serious commitment that requires capital expenditure on fleet and facilities.

The company is taking concrete steps to meet this goal. They are actively investing in cleaner power for their operations, aiming to increase the usage of renewable energy to 60% by the end of 2026, up from a 2023 baseline of 35%. Furthermore, they are upgrading their fleet; for example, the Deep Arctic dive support vessel was converted to a battery hybrid system, which reduces the vessel's fuel use and emissions by 20%. This investment makes their services more attractive to environmentally-conscious operators like Equinor and TotalEnergies.

The shift is real, and it's quantified in their capital allocation. The company's focus on integrated solutions (iEPCI™) that bake in lower carbon intensity is defintely a key competitive advantage right now.

• Cut Scope 1 & 2 GHG emissions by 50% by 2030.
• Increase renewable energy usage to 60% by 2026.
• Recycle/reuse 71% of waste materials (2024 performance).