TechnipFMC plcFTI
TechnipFMC plc Revenue Disclosure
REVENUE
The majority of our revenue is from long-term contracts associated with designing and manufacturing products and systems and providing services to customers involved in the exploration and production of oil and natural gas.
Revenue Recognition by Segment
The following is a description of principal activities separated by reportable segments from which TechnipFMC generates its revenue. See Note 5 for more detailed information about reportable segments.
Subsea
Our Subsea segment designs and manufactures products and systems, performs engineering, procurement and project management, and provides services used by oil and natural gas companies involved in offshore exploration and production of oil and natural gas. Systems and services may be sold separately, or as integrated systems and services offered within one contract. Many of the systems and products TechnipFMC supplies for subsea applications are engineered to meet the unique demands of our customers’ field properties and are typically ordered one to two years prior to installation. We often receive advance payments and progress billings from our customers in order to fund initial development and working capital requirements.
Revenue for engineering, procurement, construction, and installation projects is principally generated from long-term contracts with customers. We have determined these contracts generally have one performance obligation as the delivered product is built to customer and field specifications. We generally recognize revenue over time for such contracts as the customized products do not have an alternative use for TechnipFMC and we have an enforceable right to payment plus a reasonable profit for performance completed to date.
Our Subsea segment also performs an array of subsea services including (i) installation services, (ii) asset management services (iii) product optimization (iv) inspection, maintenance, and repair services, and (v) well access and intervention services, where revenue is generally earned through the execution of either installation-type or maintenance-type contracts. For either contract type, management has determined that the performance of the service generally represents one single performance obligation. We have determined that revenue from these contracts is recognized over time as the customer simultaneously receives and consumes the benefit of the services.
Surface Technologies
Our Surface Technologies segment designs, manufactures, and supplies technologically advanced wellhead systems and pressure control products used in well completion and stimulation activities for oilfield service companies. We also provide installation, flowback, and other services for exploration and production companies.
Performance obligations within these systems are satisfied either through delivery of a standardized product or equipment or the delivery of a customized product or equipment.
For contracts with a standardized product or equipment performance obligation, management has determined that because there is limited customization to products sold within such contracts and the asset delivered can be resold to another customer, revenue should be recognized as of a point in time, upon transfer of control to the customer, and after the customer acceptance provisions have been met.
For contracts with a customized product or equipment performance obligation, the revenue is recognized over time, as customized products do not have an alternative use for us, and we have an enforceable right to payment plus a reasonable profit for performance completed to date.
Disaggregation of Revenue
Revenues are disaggregated by geographic location and contract types. The following table presents total revenue by geography for each reportable segment for the years ended December 31, 2025, 2024, and 2023:
| Reportable Segments | |||||||||||||||||||||||||||||||||||
| Year Ended December 31, | |||||||||||||||||||||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||||||||||||||||||||
| (In millions) | Subsea | Surface Technologies | Subsea | Surface Technologies | Subsea | Surface Technologies | |||||||||||||||||||||||||||||
| Latin America | $ | 3,103.0 | $ | 90.3 | $ | 2,506.2 | $ | 96.6 | $ | 2,182.9 | $ | 122.9 | |||||||||||||||||||||||
| Europe and Central Asia | 2,184.6 | 135.2 | 1,999.0 | 125.4 | 1,927.4 | 198.5 | |||||||||||||||||||||||||||||
| Africa | 1,240.9 | 58.6 | 1,218.7 | 48.8 | 920.8 | 49.1 | |||||||||||||||||||||||||||||
| North America | 1,129.5 | 439.8 | 1,426.3 | 470.9 | 1,064.2 | 574.1 | |||||||||||||||||||||||||||||
| Asia Pacific | 738.9 | 95.3 | 578.6 | 97.2 | 331.3 | 95.2 | |||||||||||||||||||||||||||||
| Middle East | 269.0 | 447.5 | 91.1 | 424.5 | 8.2 | 349.6 | |||||||||||||||||||||||||||||
| Total revenue | $ | 8,665.9 | $ | 1,266.7 | $ | 7,819.9 | $ | 1,263.4 | $ | 6,434.8 | $ | 1,389.4 | |||||||||||||||||||||||
The following table represents revenue by contract type for each reportable segment for the years ended December 31, 2025, 2024, and 2023:
| Reportable Segments | |||||||||||||||||||||||||||||||||||
| Year Ended December 31, | |||||||||||||||||||||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||||||||||||||||||||
| (In millions) | Subsea | Surface Technologies | Subsea | Surface Technologies | Subsea | Surface Technologies | |||||||||||||||||||||||||||||
| Services | $ | 5,376.9 | $ | 265.7 | $ | 5,319.1 | $ | 201.7 | $ | 4,072.7 | $ | 210.6 | |||||||||||||||||||||||
| Products | 3,183.6 | 814.3 | 2,428.4 | 891.4 | 2,264.1 | 1,003.3 | |||||||||||||||||||||||||||||
Lease(a) | 105.4 | 186.7 | 72.4 | 170.3 | 98.0 | 175.5 | |||||||||||||||||||||||||||||
| Total revenue | $ | 8,665.9 | $ | 1,266.7 | $ | 7,819.9 | $ | 1,263.4 | $ | 6,434.8 | $ | 1,389.4 | |||||||||||||||||||||||
(a)Represents revenue not subject to ASC Topic 606.
Contract Balances
The timing of revenue recognition, billings, and cash collections results in billed accounts receivable, costs, and estimated earnings in excess of billings on uncompleted contracts (contract assets), and billings in excess of costs and estimated earnings on uncompleted contracts (contract liabilities) in the consolidated balance sheets. Any expected contract losses are recorded in the period in which they become probable.
Contract Assets - Contract assets include unbilled amounts typically resulting from sales under long-term contracts when revenue is recognized over time and revenue recognized exceeds the amount billed to the customer, and right to payment is not just subject to the passage of time. Amounts may not exceed their net realizable value. Costs and estimated earnings in excess of billings on uncompleted contracts are generally classified as current.
Contract Liabilities - We sometimes receive advances or deposits from our customers, before revenue is recognized, resulting in contract liabilities.
The following table provides information about net contract assets (liabilities) as of December 31, 2025 and 2024:
| December 31, | |||||||||||
| (In millions) | 2025 | 2024 | |||||||||
| Contract assets | $ | 1,065.5 | $ | 967.7 | |||||||
| Contract (liabilities) | (2,148.9) | (1,786.6) | |||||||||
| Net contract (liabilities) | $ | (1,083.4) | $ | (818.9) | |||||||
The increase in our contract assets from December 31, 2024 to December 31, 2025 was due to the timing of project milestones.
The increase in our contract liabilities was driven from an overall portfolio and client mix enabling an acceleration of client cash payments in advance.
In order to determine revenue recognized in the period from contract liabilities, we first allocate revenue to the individual contract liability balance outstanding at the beginning of the period until the revenue exceeds that balance. Any subsequent revenue we recognize increases the contract asset balance. Revenue recognized for the years ended December 31, 2025 and 2024 that was included in the contract liabilities balance as of December 31, 2024 and 2023 was $1,316.8 million and $1,091.7 million, respectively.
Net revenue recognized from our performance obligations satisfied or partially satisfied in previous periods had a favorable impact of $141.7 million and $11.1 million for the years ended December 31, 2025 and 2024, respectively.
For the year ended December 31, 2025, there were no projects with an individually material impact. For the year ended December 31, 2024 certain projects were materially favorably impacted by $97.3 million, as a result of improved performance in execution and materially unfavorably impacted by $58.9 million, as a result of changes in project timing. These material impacts were offset by individually immaterial projects with net negative impacts of $27.3 million for the year ended December 31, 2024.
Transaction Price Allocated to the Remaining Unsatisfied Performance Obligations
Remaining unsatisfied performance obligations (“order backlog”) represent the transaction price for products and services for which we have a material right, but work has not been performed. The transaction price of the order backlog includes the base transaction price, variable consideration, and changes in transaction price. The order backlog table does not include contracts for which we recognize revenue at the amount to which we have the right to invoice for services performed. The transaction price of order backlog related to unfilled, confirmed customer orders is estimated at each reporting date. As of December 31, 2025, the aggregate amount of the transaction price allocated to order backlog was $16,571.6 million. TechnipFMC expects to recognize revenue on approximately 38.5% of the order backlog through 2026 and 61.5% thereafter.
The following table details the order backlog for each business segment as of December 31, 2025:
| (In millions) | 2026 | 2027 | Thereafter | ||||||||||||||
| Subsea | $ | 5,977.5 | $ | 4,380.5 | $ | 5,513.7 | |||||||||||
| Surface Technologies | 403.9 | 202.6 | 93.4 | ||||||||||||||
| Total remaining unsatisfied performance obligations | $ | 6,381.4 | $ | 4,583.1 | $ | 5,607.1 | |||||||||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 19, 2026 | Showing above |
| 2024 | Feb 27, 2025 | |
| 2023 | Feb 27, 2024 | |
| 2022 | Feb 24, 2023 | |
| 2021 | Feb 28, 2022 | |
| 2020 | Mar 5, 2021 | |
| 2019 | Mar 3, 2020 | |
| 2018 | Mar 11, 2019 | |
About Revenue Disclosures
Revenue disclosures under ASC 606 explain how a company identifies performance obligations, allocates transaction prices, and determines when revenue is recognized. This section is essential for understanding whether reported revenue reflects genuine economic activity or aggressive accounting choices. Analysts examine the mix of point-in-time versus over-time recognition, which directly affects revenue timing and comparability.
Key signals: rising contract liabilities (deferred revenue) suggest strong future revenue visibility, while declining contract assets may indicate slowing project milestones. Watch for variable consideration estimates — rebates, returns, and performance bonuses that require management judgment. Significant changes in disaggregated revenue by geography or product line can reveal shifting business mix before it appears in headline numbers. Compare revenue growth against contract liability growth to assess sustainability, and scrutinize any changes in the timing of recognition that coincide with earnings pressure.