Why TechnipFMC’s latest contract wins matter for the stock

TechnipFMC (FTI) just secured a large iEPCI contract with Vår Energi in the North Sea and a significant subsea award from Azule Energy in Angola, both feeding directly into its subsea backlog.

TechnipFMC’s recent iEPCI win with Vår Energi in the North Sea and the subsea contract with Azule Energy in Angola come after a period where the share price has softened in the short term, with the 1 day, 7 day, 30 day and 90 day share price returns all in decline, even as the year to date share price return of 36.21% and 1 year total shareholder return of 87.33% point to momentum that has been strong over a longer horizon.

If these contract wins have you thinking about where else project driven growth could show up, it may be worth scanning opportunities in related infrastructure by checking out 35 power grid technology and infrastructure stocks

With TechnipFMC’s shares down over the past month and quarter but still up 36.2% year to date and 87.3% over 1 year, investors face a key question: is there still upside here, or has the market already priced in any future growth?

Most Popular Narrative: 15.2% Undervalued

At a last close of $64.44 versus a narrative fair value of $76.00, TechnipFMC is framed as undervalued, with that view anchored in subsea orders and margins.

Robust and growing pipeline of offshore oil & gas and deepwater projects globally, driven by increased capital allocation to longer-cycle offshore developments in regions such as Brazil, Guyana, Mozambique, and Namibia, is underpinning TechnipFMC's record Subsea order intake and high backlog, supporting visibility into sustained revenue growth over the coming years.

Want to see what turns that backlog into a higher fair value for TechnipFMC? The narrative focuses on steady top line expansion, rising margins, and a rich future earnings multiple. Curious which of those assumptions contributes most in the model and how far the pricing power argument really goes? The full story sits inside that narrative.

Result: Fair Value of $76.00 (UNDERVALUED)

However, the story of TechnipFMC can change quickly if subsea order momentum slows or if geopolitical issues delay projects and squeeze margins tied to its global footprint.

Another View on TechnipFMC’s valuation

The first narrative paints TechnipFMC as about 15.2% undervalued at $64.44 versus a $76.00 fair value, but the simple P/E picture is more mixed. The stock trades on 23.7x earnings, below the US Energy Services industry at 26.2x, yet above the peer average of 20.1x and its own fair ratio of 20.5x. That mix of discount and premium suggests some valuation risk if sentiment or growth expectations cool. Which signal you treat as more important may influence how you size a position.

Next Steps

With TechnipFMC’s mix of risks and rewards in focus, the key question is how you see the balance and how quickly you act to refine that view using 3 key rewards and 1 important warning sign

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.