Corrected: France's Technip Energies H1 profit falls on Middle East disruption; order intake hits record

Technip Energies

30/07/2026 06:42

Corrects metric in Key Details table to "adjusted recurring EBIT margin" from "EBIT margin"

Overview
France engineering firm's H1 revenue stable yr/yr, profitability declines on Middle East disruption
Company's H1 net profit and EBITDA fell sharply due to provisions and higher costs
Record €12.7 bln order intake lifts backlog to €25 bln; completed €150 mln share buyback

Outlook
Technip Energies sees 2026 Project Delivery revenue at €5.7-6.3 bln, unchanged from prior guidance
Company lowers 2026 Project Delivery EBITDA margin guidance to >5.0% from 6.5%-7.5%
Technip Energies raises 2026 Technology, Products & Services EBITDA margin guidance to ~15%

Result Drivers
MIDDLE EAST DISRUPTION - Profitability was hurt by operational and contractual challenges, higher costs and provisions related to the ongoing conflict in the Middle East
PROJECT DELIVERY SLOWDOWN - Growth in LNG and decarbonization projects in the US and Europe was mostly offset by slower progress on Middle East projects and adverse foreign exchange movements
RECORD ORDER INTAKE - Major new contracts, especially in LNG and floating LNG, drove order intake to €12.7 bln and expanded the backlog, supporting medium-term growth

Company press release: ID:nGNX6m7FwQ

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
H1 Revenue
 
EUR 3.65 bln
 
H1 EPS
 
EUR 0.54
 
H1 Net Income
 
EUR 95.90 mln
 
H1 Adjusted Recurring EBIT
 
EUR 137.50 mln
 
H1 Adjusted Recurring EBIT Margin
 
3.80%
 
H1 Orders
 
EUR 12.73 bln
 

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 11 "strong buy" or "buy", 7 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the oil related services and equipment peer group is "buy"
Wall Street's median 12-month price target for Technip Energies NV is €45.00, about 38% above its July 29 closing price of €32.62
The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 13 three months ago

Reuters Recommended Reads
July 30 - Technip Energies cuts margin outlook as Middle East hit deepens
July 28 - Saipem cuts 2026 forecast, signals Middle East hit for energy contractors
July 28 - France's GTT H1 net income jumps amid strong order intake

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 (This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)