Technip Energies tumbles as Mideast hit forces margin cut for project delivery unit (updated)

Technip Energies

30/07/2026 08:38

Adds share move in paragraph 1 and headline, CFO comment in paragraph 6
By Jesus Calero
July 30 (Reuters) - French engineering group Technip Energies TE.PA cut the 2026 margin outlook for its Project Delivery division on Thursday, as Middle East disruption and provisions pushed quarterly core earnings far below market expectations, sending its shares tumbling more than 15%.
Adjusted recurring earnings before interest, taxes, depreciation and amortisation fell 60% to €63.5 million ($72.3 million), far below the €152 million expected in a company-compiled consensus.
Revenue rose 4% to €1.87 billion, missing analysts' expectations of €1.92 billion.
The results mark a deterioration from April, when Technip largely described the impact of the Middle East conflict as delayed project activity and revenue. It has now recognised provisions related to disputed items, as well as additional logistics, safety and business continuity costs.
Technip said its projects in the region remained fully mobilised and activity had stabilised, but the extent and timing of cost recovery under contractual protections would depend on the evolution of the conflict and discussions with customers.
"Where we have agreements with clients, we have included the recovery ... Where negotiations are still ongoing, we have not assumed any recovery in our guidance," Chief Financial Officer Bruno Vibert told reporters.
The company cut its 2026 EBITDA margin forecast for the Project Delivery division to above 5% from between 6.5% and 7.5%, while maintaining a revenue guidance of €5.7 billion to €6.3 billion.
The revised outlook assumes current operating conditions persist through the end of the year, it said.
Project Delivery EBITDA fell to €23.8 million from €100.9 million a year earlier, while the unit's margin dropped to 1.7% from 7.6%, despite a 7% increase in revenue to €1.42 billion.
Technip meanwhile raised the margin outlook for its Technology, Products and Services unit to around 15% from 14.5%, after the unit posted quarterly EBITDA of €69 million and a margin of 15.4%.
First-half order intake reached €12.7 billion, lifting backlog to a record €25 billion, compared with €16 billion at the end of 2025. However, €14.4 billion of that backlog is scheduled for 2028 and beyond.
($1 = 0.8787 euros)

(Reporting by Jesus Calero in Gdansk; Editing by Matt Scuffham and Milla Nissi-Prussak)
((jesus.calero@thomsonreuters.com))