Technip Energies Trims 2026 Guidance After Hormuz Disruption Delays Revenue
Technip Energies Revises Financial Outlook Amid Middle East Tensions
By Hugo Lhomedet, Lucie Barbier and ELENA SMIRNOVA
April 30 (Reuters) - French engineering and technology company Technip Energies cut its full-year guidance on Thursday, citing disruptions from the Middle East conflict and the closure of the Strait of Hormuz.
2026 Revenue and Profit Margin Adjustments
The company, which designs and delivers large energy infrastructure including liquefied natural gas plants, expects 2026 revenue at its Project Delivery division to land between 5.7 billion euros and 6.3 billion euros ($6.7 billion and $7.4 billion), down from a previous forecast of 6.3 billion to 6.7 billion euros.
Core Profit Margin Forecast
It sees a core profit margin, or the proportion of earnings before interest, taxes, depreciation and amortisation to sales, of between 6.5% and 7.5% for the division, versus around 8% previously.
Technology, Products & Services Business Outlook
It also trimmed the lower end of its revenue range for the Technology, Products & Services business by 100 million euros, seeing it between 1.9 billion and 2.2 billion euros, while keeping the unit's EBITDA margin forecast unchanged at around 14.5%.
Impact of Middle East Exposure
Technip Energies has significant exposure to the Middle East through major LNG projects in Qatar, Oman, the United Arab Emirates and Saudi Arabia, where some worksites have experienced temporary stoppages before phased resumptions.
CEO and CFO Commentary
"Assuming the situation in the Middle East normalizes by the end of the second quarter, we estimate that around 500-600 million euros in revenue will be deferred beyond 2026, while the impact on project margins should be substantially mitigated," CEO Arnaud Pieton said in a press release.
Finance Chief's Statement
Finance chief Bruno Vibert told reporters that no contracts had been cancelled as a result of the disruption and that it was "just a shift" of revenue and activity from this year to 2027 and 2028.
Order Intake and Quarterly Results
Quarterly order intake rose to 6.05 billion euros from 662.7 million euros a year earlier, driven by major LNG and sustainable fuels awards, with backlog growing to a record 20.2 billion euros.
First-Quarter Revenue Performance
The company's first-quarter adjusted revenue was 1.78 billion euros, which missed the 1.88 billion euros expected by analysts in a company-compiled consensus.
($1 = 0.8573 euros)
(Reporting by Hugo Lhomedet, Lucie Barbier and Elena Smirnova. Editing by Milla Nissi-Prussak.)
