Technip Energies misses profit forecast on M&A costs, delayed investment decisions (updated)

Technip Energies NV

30/10/2025 10:35

Adds share reaction in paragraphs 1, 6, adds details on results and analyst comments in paragraphs 5, 7, 8

By Alban Kacher

Oct 30 (Reuters) - French energy infrastructure firm Technip Energies TE.PA reported third-quarter core profit below expectations on Thursday, sending its shares falling, as acquisition-related costs and clients' delayed decisions on final investments weighed on the results.

Adjusted recurring earnings before interest, taxes, depreciation and amortisation (EBITDA) were 159 million euros ($185 million) in the quarter, missing the 167 million euros expected by analysts on average, according to a company-compiled consensus.

The shortfall was linked to higher costs from investments in Technip's textile-to-textile recycling firm Reju and the recent acquisition of Ecovyst's advanced materials and catalysts business, the group's finance chief Bruno Vibert said during a media call.

The Paris-listed group's non-recurring expenses rose by more than threefold to 49.4 million euros in the quarter, from 16.4 million euros a year earlier.

Net income was 20% below consensus due to non-recurring costs while order backlog stood at 16.8 billion euros, missing analysts' consensus by 8%, Jefferies said in a note to investors.

The stock was down 6% at 0945 GMT, the worst performer of the SBF 120 index .SBF120 of Paris' most traded stocks.

"We are somewhat cautious ... of the outlook for LNG sanctions, underpinned by the upcoming LNG supply wave and risk of further delays to US LNG projects," RBC analyst Victoria McCulloch wrote in a research note.

Further gains for Technip are likely to hinge on demand in the Technology, Products & Services segment, which is linked to energy transition spending, she added.

The TPS business, which generated around 30% of the group's revenue last year, was affected by delayed final investment decisions in the third quarter, notably in the United States, Vibert said.

Technip expects the segment's revenue to end up in the lower end of its guidance range for this year, the CFO added, as the group confirmed its forecasts for 2025.

($1 = 0.8575 euros)

(Reporting by Alban Kacher. Editing by Jane Merrman and Milla Nissi-Prussak)

((Alban.kacher@thomsonreuters.com; +48 58 769 65 87))