Technip Energies N.V. (TE.PA) | Investment Case

1. Company Snapshot

1.a. Company Description

Technip Energies N.V., together with its subsidiaries, operates as an engineering and technology company for the energy transition in Europe, Russia, the Asia Pacific, Africa, the Middle East, and the Americas.The company operates through two segments, Projects Delivery, and Technology, Products and Services.It is involved in the engineering, procurement, construction management, commissioning, and transport and installation of various energy projects.

The company also engages in designing, engineering, procurement, construction, and project management of various onshore and offshore facilities related to gas monetization, ethylene, hydrogen, refining, and chemical processing from biofuels and hydrocarbons.In addition, it develops, designs, commercializes, and integrates a range of technologies in gas monetization, refining, petrochemicals, and fertilizers, hydrogen, and sustainable chemistry; provides land and marine-based loading and transfer systems services to the oil and gas, petrochemical, chemical, and decarbonization industries; and offers a range of project management consulting services to the energy industry.Further, it offers robotics, asset monitoring, and surveillance solutions, as well as nondestructive testing and material testing solutions for harsh environments of a range of industries, such as nuclear, oil and gas, offshore wind, or aerospace; commercializes a complete solution for inspection, and maintenance and repair for its proprietary software supervision Cyxense Commander, which is used to remotely control an heterogeneous fleet of robots; develops a range of proprietary third party robots; and provides digital services.

Technip Energies N.V. was incorporated in 2019 and is headquartered in Nanterre, France.

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1.b. Last Insights on TE

Negative drivers behind Technip Energies' recent performance include concerns about valuation and competition, as noted by analysts. The company's acquisition of Ecovyst's Advanced Materials & Catalysts business may also pose integration challenges. Additionally, the energy sector's transition to renewable sources may impact Technip Energies' traditional business lines, such as oil and gas contracting.

1.c. Company Highlights

Last Price	33.6
Change Percentage	-0.41%
Open	33.72
Previous Close	33.74
Market Cap ( Millions)	5912
Volume	273720
Year High	42.82
Year Low	24.9
M A 50	32.66
M A 200	35.8

FCF Yield	23.98%
Dividend Yield	2.53%
ROE	23.35%
Debt / Equity	45.62%
Net Debt / EBIDTA	-413.85%
Price To Book	2.77
Price Earnings Ratio	12.08
Price To FCF	4.17
Price To sales	0.65
EV / EBITDA	4.32

2. Technip Energies' Solid 9-Month Performance

Technip Energies reported a 9% year-over-year revenue growth, reaching EUR 5.4 billion for the first 9 months of 2025. The company's recurring EBITDA rose by 9% to EUR 478 million, delivering a healthy margin of 8.8%. Earnings per share (EPS) recorded a modest increase of 2% year-over-year, coming in at EUR 1.06, significantly beating analyst estimates of EUR 0.612. Free cash flow conversion from EBITDA remained robust at 87%. As Bruno Vibert, CFO, highlighted, the company's financial performance reflects its disciplined execution and asset-light business model.

Publication Date: Nov -01

                                    📋 Highlights
                                    Revenue Growth:
                                                9% YoY increase to EUR 5.4 billion for first 9 months of 2025.
EBITDA Margin Resilience:
                                                Recurring EBITDA rose 9% to EUR 478 million, maintaining 8.8% margin.
Major Contract & Acquisition:
                                                Secured U.S. Commonwealth LNG contract and acquired Ecovyst’s Advanced Materials & Catalysts for EUR 700 million.
Free Cash Flow Strength:
                                                Achieved 87% free cash flow conversion from EBITDA, up from prior periods.
TPS Backlog Visibility:
                                                EUR 7 billion in 2026 backlog, with ethylene market capacity expected to grow from 200M to 300M tons by 2040.

                                

Segment Performance

The company's Project Delivery portfolio continues to deliver solid progress, with year-to-date revenue trends and margin resilience. Technip Energies is transitioning into pre-commissioning activities for the first of its 4 trains on the NFE project and is intensifying activities on the adjacent NFS project. The TPS segment has seen a bit of a blip in 2025 due to the unsupportive environment for low-carbon solutions, but the company remains committed to investing in traditional markets.

Growth Prospects

Despite the macroeconomic and geopolitical backdrop, Technip Energies sees opportunities across its markets to build upon its growth potential. The company is well-positioned in the LNG market, with several projects in progress, including Commonwealth LNG, Coral, and Rovuma. The global ethylene industry's capacity is expected to grow from 200 million metric tons per annum to over 300 MTPA by 2040, driven by demand in various sectors.

Valuation

With a P/E Ratio of 12.66 and an EV/EBITDA of 4.77, the market appears to be pricing in moderate growth expectations. The company's ROE of 23.35% and ROIC of 12.33% indicate a strong ability to generate returns on equity and invested capital. The Dividend Yield of 2.41% provides a relatively stable source of return for investors. Given the company's solid 9-month performance and growth prospects, the current valuation multiples seem reasonable.

Outlook

Technip Energies has confirmed its full-year guidance, and analysts estimate next year's revenue growth at 18.0%. The company's acquisition of Ecovyst's Advanced Materials & Catalysts is expected to be immediately accretive to its financial profile. With a significant commercial pipeline and a strong backlog, Technip Energies is well-positioned for future growth.

3. NewsRoom

Technip Energies announces the appointment of Jesse Stanley as President, Technologies & Products, and the new composition of its Executive Committee

Feb -19

Source:

Is Technip Energies (ENXTPA:TE) Pricing Reflect Its Cash Flow And Earnings Potential?

Feb -17

Source:

Reju selects France for new circular textile hub

Feb -16

Source:

Reju Selects Site for First Industrial-Scale Regeneration Hub in France

Feb -13

Source:

Reju Announces Site Selection for French Regeneration Hub in Lacq Advancing Europe's Circular Textile Infrastructure

Feb -13

Source:

Technip Energies awarded a substantial contract for SkyNRG’s Sustainable Aviation Fuel project in the Netherlands

Feb -12

Source:

Assessing Technip Energies (ENXTPA:TE) Valuation As Share Price Momentum Cools

Jan -24

Source:

Technip Energies Announces Publication Date for Full Year 2025 Financial Results and Conference Call

Jan -22

Source:

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (8.64%)

6. Segments

Project Delivery

Expected Growth: 8%

Technip Energies N.V.'s 8% project delivery growth is driven by increasing demand for energy transition and LNG projects, strategic partnerships, and expansion into new geographies. Additionally, the company's focus on digitalization, modularization, and standardization of projects enhances efficiency and reduces costs, leading to improved project delivery and growth.

Technology, Products & Services

Expected Growth: 10%

Technip Energies N.V.'s 10% growth in Technology, Products & Services is driven by increasing demand for energy transition and decarbonization solutions, expansion in liquefied natural gas (LNG) and offshore wind projects, and growing adoption of digital technologies such as artificial intelligence and data analytics in the energy sector.

7. Detailed Products

Subsea

Design, manufacture, and installation of subsea equipment and systems for the oil and gas industry

Surface International

Engineering, procurement, and construction (EPC) services for onshore oil and gas facilities

Surface Process

Design, engineering, and construction of onshore oil and gas processing facilities

Offshore Wind

Engineering, procurement, and construction (EPC) services for offshore wind farms

Hydrogen and CO2 Management

Design, engineering, and construction of hydrogen production and CO2 capture, transportation, and storage facilities

Biofuels and Renewable Energy

Design, engineering, and construction of biofuels and renewable energy facilities

8. Technip Energies N.V.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Technip Energies N.V. is medium due to the availability of alternative energy sources and the increasing adoption of renewable energy.

Bargaining Power Of Customers

The bargaining power of customers for Technip Energies N.V. is low due to the company's strong market position and the lack of alternative suppliers.

Bargaining Power Of Suppliers

The bargaining power of suppliers for Technip Energies N.V. is medium due to the company's dependence on a few key suppliers and the potential for supply chain disruptions.

Threat Of New Entrants

The threat of new entrants for Technip Energies N.V. is low due to the high barriers to entry in the energy industry and the company's established market position.

Intensity Of Rivalry

The intensity of rivalry for Technip Energies N.V. is high due to the competitive nature of the energy industry and the presence of several established players.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

	Value
Debt Weight	30.54%
Debt Cost	3.95%
Equity Weight	69.46%
Equity Cost	7.66%
WACC	6.53%
Leverage	43.97%

11. Quality Control: Technip Energies N.V. passed 4 out of 9 key points

Strong Liquidity

Low Debt

Strong Interest Coverage

Healthy Cash Flow

Operating Efficiency

Strong Return On Equity

Consistent Revenue Growth

Consistent Operating Cash Flow Growth

Margin Improvement

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Gaztransport Technigaz

A-Score: 6.9/10

Value: 3.0

Growth: 8.1

Quality: 9.4

Yield: 6.9

Momentum: 8.5

Volatility: 5.7

1-Year Total Return ->

Subsea 7

A-Score: 6.4/10

Value: 6.9

Growth: 6.9

Quality: 5.1

Yield: 6.2

Momentum: 6.0

Volatility: 7.0

1-Year Total Return ->

Technip Energies

A-Score: 6.2/10

Value: 7.5

Growth: 5.2

Quality: 6.1

Yield: 4.4

Momentum: 9.0

Volatility: 5.0

1-Year Total Return ->

SBM Offshore

A-Score: 5.9/10

Value: 6.7

Growth: 5.3

Quality: 4.1

Yield: 3.1

Momentum: 9.0

Volatility: 7.0

1-Year Total Return ->

TechnipFMC

A-Score: 4.9/10

Value: 4.0

Growth: 5.1

Quality: 7.1

Yield: 0.6

Momentum: 9.0

Volatility: 3.3

1-Year Total Return ->

Saipem

A-Score: 4.7/10

Value: 7.8

Growth: 3.2

Quality: 4.4

Yield: 5.0

Momentum: 3.5

Volatility: 4.3

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

-9.73%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

6.53%

Technip Energies N.V. - NL0014559478

1. Company Snapshot

1.a. Company Description

1.b. Last Insights on TE

1.c. Company Highlights

Stable Momentum

Fairly Valued

Medium Volatility

Earnings Beats

Average Growth

Average Quality

Revenues Beats

Earnings Miss

Strong Momentum

Expensive

Average Yield

2. Technip Energies' Solid 9-Month Performance

Segment Performance

Growth Prospects

Valuation

Outlook

3. NewsRoom

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (8.64%)

6. Segments

Project Delivery

Expected Growth: 8%

Technology, Products & Services

Expected Growth: 10%

7. Detailed Products

Subsea

Surface International

Surface Process

Offshore Wind

Hydrogen and CO2 Management

Biofuels and Renewable Energy

8. Technip Energies N.V.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Bargaining Power Of Customers

Bargaining Power Of Suppliers

Threat Of New Entrants

Intensity Of Rivalry

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

11. Quality Control: Technip Energies N.V. passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

33.6$

Current Price

33.6$

Potential

-0.00%

Expected Cash-Flows

12.e Scoring ^Insights

12.f DCF ^BETA