Technip Energies Projects Strong Growth by 2028
PARIS - Technip Energies (PARIS:TE), a global leader in energy transition infrastructure, presented a robust growth strategy and financial outlook forecasting significant expansion by 2028 during its Capital Markets Day held in London. CEO Arnaud Pieton emphasized the company's role in securing sustainable energy and its preparedness to succeed in various energy transition scenarios.
Since its establishment in 2021, Technip Energies has demonstrated strong financial performance and aims to strengthen its presence in new markets through a diversified portfolio. The company anticipates a commercial pipeline exceeding €75 billion by 2026, with a balanced focus on energy, energy derivatives, and decarbonization markets.
In the medium term, by 2025, Technip Energies expects Project Delivery revenues to be between €5.0 and €5.4 billion, aiming for an EBITDA margin of approximately 8%. The Technology, Products, and Services (TPS) segment is forecasted to generate revenues between €2.0 and €2.2 billion with an EBITDA margin of 13.5%. Corporate costs are estimated to be between €50 and €60 million.
Looking towards 2028, the company's financial framework projects that Project Delivery revenues will exceed €6.0 billion, with an EBITDA margin around 8.5%. TPS revenues are expected to surpass €2.6 billion, and the EBITDA margin is anticipated to approach 14.5%. Corporate costs are expected to be around €60 million. Excluding working capital, the conversion of free cash flow from EBITDA is expected to range between 70% and 85%, with cumulative free cash flow from 2024 to 2028 projected between €2.2 and €2.6 billion.
Technip Energies' growth is supported by strong market demand and diversification in the decarbonization sector, particularly involving carbon capture, clean hydrogen, and sustainable fuels. The market the company addresses is expanding due to structural mega trends such as population growth, urbanization, and economic development.
The company's capital allocation strategy focuses on shareholder returns and strategic investments. With more than €1 billion in available balance sheet strength, it supports a dividend payout policy of 25% to 35% of free cash flow, excluding working capital, and includes potential share buybacks depending on market conditions.
Technip Energies' growth approach combines continuous innovation, smart engineering, and excellent execution aimed at merging prosperity and sustainability in the long term. This growth strategy and financial outlook are based on the company’s evaluation of the current macroeconomic and geopolitical environment, with no major changes anticipated. The information presented here is based on Technip Energies' press release.