Technip Energies reported an adjusted net profit of €95.9 million for the first half of 2026, a 50% decline from €191.0 million in H1 2025, as ongoing conflicts in the Middle East disrupted operations and increased costs. While profitability contracted, the company secured exceptional commercial momentum, with order intake reaching €12.7 billion and driving its adjusted backlog to a record €25.0 billion, equivalent to three years of revenue. This robust pipeline positions the firm for medium-term growth despite near-term margin pressures, though management has lowered its full-year Project Delivery EBITDA margin guidance to greater than 5.0%, down from the previous range of 6.5% to 7.5%. The results, released on July 30, 2026, reflect a complex operating environment where stable revenue generation was offset by significant logistical and contractual headwinds.

Arnaud Pieton, Chief Executive Officer of Technip Energies, attributed the margin compression to secondary cost impacts and disputed items linked to the Middle East situation, noting that while cost recovery is expected under strong contractual protections, timing remains uncertain. Procedurally, the company presented its financial performance under adjusted IFRS measures, excluding non-recurring items such as purchase accounting impacts from the AM&C acquisition and strategic investments in adjacent business models. The Board also highlighted increased corporate costs of €41.9 million for the period, partly due to the ESOP 2026 employee share offering, which saw a 42% subscription rate among eligible employees.

Financial Performance

Revenue remained stable at €3,653.0 million, a marginal increase from €3,646.4 million in H1 2025. However, recurring EBITDA fell sharply by 33% to €212.3 million, with the margin contracting to 5.8% from 8.7% year-ago. Recurring EBIT declined 47% to €137.5 million. The following table details the key adjusted financial metrics for the period.

The Project Delivery segment bore the brunt of the operational challenges, with recurring EBITDA falling 45% to €117.6 million and margins slipping 350 basis points to 4.3%. Conversely, the Technology, Products & Services (TPS) segment demonstrated resilience, maintaining stable recurring EBITDA of €136.6 million and improving its EBITDA margin by 30 basis points to 15.4%, leading management to raise its full-year TPS margin guidance to approximately 15%.

Order Intake and Backlog

Commercial activity accelerated significantly, with adjusted order intake reaching €12,728.9 million, a substantial increase from €2,653.8 million in H1 2025. This surge was driven largely by major awards in the Project Delivery segment, including a Full Notice To Proceed for Commonwealth LNG’s 9.5 Mtpa facility in the United States and a major contract for the Coral Norte FLNG project in Mozambique. Consequently, the adjusted backlog expanded by 57% to €25,035.0 million as of June 30, 2026, compared to €15,955.4 million at the end of FY 2025.

What the Numbers Show

A critical divergence exists between Technip Energies’ top-line stability and bottom-line contraction. While revenue remained flat year-over-year, the 33% drop in recurring EBITDA indicates that the company is absorbing significant incremental costs—particularly in logistics and safety within the Middle East—without fully passing them through or recognizing them immediately. This suggests that near-term profitability will remain pressured until the geopolitical situation stabilizes and contractual claims are resolved. However, the massive expansion in backlog provides a cushion, ensuring that revenue visibility remains high for the next three years even if margins take time to recover.

Balance Sheet and Cash Flow

Technip Energies maintained a strong liquidity position, with gross cash rising to €4.8 billion at June 30, 2026, up from €3.8 billion at the end of 2025. Gross debt increased to €1.4 billion following the issuance of €500 million in 4% senior unsecured notes due June 10, 2033. Free cash flow, excluding working capital and provisions, stood at €183.0 million, representing an 86% conversion from recurring EBITDA. The company also completed its €150 million share buyback program, acquiring 4,246,851 shares at an average price of €36.64.

Technip Energies and EDF have signed a strategic framework agreement to support the execution, construction management, and delivery of EDF’s nuclear new-build program, specifically the EPR2 reactors. This partnership addresses critical operational challenges in large-scale nuclear infrastructure by combining EDF’s reactor engineering mastery with Technip Energies’ complex project management expertise. The move is designed to strengthen execution discipline and improve schedule predictability across all of EDF’s nuclear new-build activities, ensuring projects are delivered on time, within budget, and to expected safety levels.

Under the non-exclusive agreement, Technip Energies will deploy experienced personnel into key operational roles within EDF, particularly in project and construction management processes. These experts will work as part of integrated teams alongside EDF’s personnel. This model allows EDF to draw on Technip Energies’ proven expertise in delivering major complex industrial and energy projects. The agreement establishes a common foundation for long-term cooperation, enabling both companies to combine complementary capabilities and capitalize on lessons learned from large-scale industrial projects in support of EDF’s future nuclear developments.

Partnership Details

The collaboration focuses on integrating specialized skills to enhance the French nuclear team’s capacity. EDF brings its efficient supply chain dedicated to building EPR2s, while Technip Energies contributes world-renowned complex project management skills. The agreement does not specify a monetary value but outlines a structural cooperation model aimed at operational efficiency.

Loïc Chapuis, President Project Delivery and Services at Technip Energies, stated that the agreement marks a new chapter between the two companies. He noted that by combining EDF’s long-standing nuclear expertise with Technip Energies’ experience in delivering highly complex industrial and energy infrastructure, their integrated teams will support execution and schedule certainty across major nuclear projects. Chapuis emphasized that beyond operational benefits, this partnership reflects the kind of long-term industrial cooperation needed to deliver France’s nuclear ambitions and support the future of the EPR2 program.

Thierry Le Mouroux, Group Senior Executive Vice President with responsibility for the Nuclear Projects and Industrial Partnership Division at EDF, highlighted that this strategic partnership combines the complementary expertise of both companies. He underscored that together, they strengthen the French nuclear team to ensure the EPR2 program is delivered successfully—on time, within budget, and to the expected levels of safety.

What the Numbers Show

While the agreement itself does not disclose specific financial terms or contract values, the scale of the partners indicates significant strategic weight. Technip Energies generated revenues of €7.2 billion in 2025 and operates with over 18,000 employees across 35 countries. EDF, a global leader in low-carbon energy, generated €113.3 billion in 2025 and supplies energy to around 41 million customers. The integration of Technip Energies’ project delivery capabilities into EDF’s massive €113.3 billion operation suggests a focus on optimizing capital expenditure efficiency and timeline adherence for the EPR2 fleet, rather than immediate revenue recognition for Technip Energies. This structural support aims to mitigate delays and cost overruns common in large-scale nuclear builds.