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Publish Date: Thu, 21 Nov 2024, 06:38 AM
Nov 21 (Reuters) - French infrastructure and technology company Technip Energies (TE.PA) , opens new tab set out its short-term and medium-term targets at its Capital Market Day event on Thursday, unveiling its strategy for the next four years.
The company, which specialises in technology for the energy sector, expects Project Delivery revenue of between 5.0 billion and 5.4 billion euros ($5.27 billion and $5.69 billion) in 2025, with a core profit (EBITDA) margin of around 8%.
For its Technology, Product & Services segment, it targets 2025 EBITDA margin of 13.5% on revenue of 2.0-2.2 billion euros.
The 2025 growth expectations for both segments are underpinned by backlog strength and a set of commercial opportunities, the management said during a press call.
Technip Energies' shares, which had gained 18% since it reported its last quarterly results, were down 2% by 1056 GMT.
"The recent outperformance since third quarter results and lack of a firm buyback commitment ... have led to the somewhat weak performance in the shares this morning," BNP Paribas analyst Daniel Thomson said.
The company said its commercial pipeline of more than 75 billion euros through to the end of 2026 was "well balanced by market and geography".
It also outlined its 2028 goals. In the PD segment, it guides for an EBITDA margin of 8.5% on revenue of more than 6.0 billion euros. In the TPS segment, it sees a margin of 14.5% and revenue of 2.6 billion.
Asked about the United States and the posture of President-elect Donald Trump towards the green energy transition, CEO Arnaud Pieton defined the U.S. as a "pro-business" country.
"I do not think the United States will allow itself to fall behind in the race for energy transition, nor will it let China gain an advantage or a lead that cannot be overcome. Therefore, I anticipate that the future administration will want to stay competitive in this arena," Pieton said.
During his campaign, Trump vowed to reverse dozens of environmental policies deemed onerous by oil and gas drillers.
Technip Energies forecast a cumulative free cash flow of 2.2-2.6 billion euros for 2024-2028 and said it planned to pay out between 25% and 35% of its free cash flow as dividends, excluding working capital.
($1 = 0.9490 euro)
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https://www.reuters.com/business/energy/technip-energies-unveils-2025-2028-outlook-2024-11-21/