THNPY - Technip Energies N.V. (THNPY) Q4 2024 Earnings Call Transcript

2025-02-28 10:17:34 ET

Technip Energies N.V. (THNPY)

Q4 2024 Earnings Conference Call

February 27, 2025 07:00 AM ET

Company Participants

Phil Lindsay - Vice President-Investor Relations

Arnaud Pieton - Chief Executive Officer

Bruno Vibert - Chief Financial Officer

Conference Call Participants

Kate O'Sullivan - Citi

Bertrand Hodee - Kepler Cheuvreux

Richard Dawson - Berenberg

Jean-Luc Romain - CIC Market Solutions

Sebastian Erskine - Redburn Atlantic

Jamie Franklin - Jefferies

Daniel Thomson - BNP Paribas Exane

Presentation

Phil Lindsay

Hello, and welcome to Technip Energies’ Financial Results for Full Year 2024. On the call today, our CEO, Arnaud Pieton, will discuss our full year performance and business highlights. This will be followed by our CFO, Bruno Vibert, who will share more details on our financials. Then Arnaud will come back with the outlook and conclusion. We will then open for questions. Before we start, I would urge you to take note of the forward-looking statements on Slide 3.

I will now pass the call over to Arnaud.

Arnaud Pieton

Thank you, Phil and hello, everyone. Before diving into our results and 2024 highlights, I would like to remind you of who we are at Technip Energies and of our unparalleled value proposition. We are leaders in energy and decarbonization markets, prioritizing safety and innovation and our 17,000 talents are the cornerstone of our success. We are a technology and engineering powerhouse, focused on value creation, expanding and diversifying our portfolio. Our ambitious road map through 2028 underscores T.EN's growth credentials; over €8.6 billion in revenue, over €800 million EBITDA and a free cash flow conversion between 70% to 85%. We are equipped with a strong balance sheet generating significant and sustainable free cash flow. As we execute our growth strategy, prioritize capital allocation for dividend growth and value enhancing investments; we will accelerate value creation for all our shareholders.

Now let me remind you of our business models, which have complementary strength and business cycles. Project Delivery PD is cash generative, negative capital employed and derisked with a business cycle that brings several years of workload and cash flow visibility. PD is a portfolio of many types of projects and contractual schemes with rigorous active risk management. Therefore, Project Delivery at T.EN, represents a sound and robust base load for cash generation not just now but for the foreseeable future as you will see through our results presentation.

Now on TPS; Technology Products & Services; our higher margin, faster growth segment. In many instances, TPS is the precursor to Project Delivery. It broadens our offering of proprietary solutions, it reinforces our differentiation through productization and technology scale up and it is the gateway to market with accelerated growth. For all these reasons, TPS is where our capital will be further deployed. Thanks to our success in PD and TPS and our balance sheet strength, we have the ability to venture and pioneer in adjacent business models. It's about generating recurring earnings and about longer-term value retention. In 2023, we started with Reju, a T.EN company that could be a €2 billion revenue company by 2034 subject to investment decisions.

Before highlighting our full year achievements, let's revisit the transformative milestones from our November Capital Markets Day. We demonstrated how our strategic choices are paying off and discussed the promising future of our expanding market landscape with continued growth in energy and energy derivatives markets and faster double-digit growth in decarbonization and circularity. We also showcased a robust and diverse commercial pipeline valued at €75 billion through 2026....

For further details see: