Jefferies Maintains Buy Rating on Technip Energies
Jefferies maintains its Buy rating on Technip Energies, with an unchanged price target of 48 euros. The research firm anticipates positive surprises regarding the 2025 dividend and outlook for 2026 for the global engineering and technology specialist in the energy transition sector.
"Our forecasts are 4% above the 2026 consensus, with EBITDA of 800 million euros and revenue of 8.7 billion euros, mainly due to higher income from the 'Projects Delivery' division, supported by strong order book coverage in the third quarter," the firm explains.
"The completion of the AM&C acquisition at the end of 2025 (earlier than the initially planned Q1 2026 deadline) leads us to raise our estimates for TPS ('Technology & Product Solutions'). For the group in the fourth quarter, we anticipate order intake of 1.15 billion euros, representing a book-to-bill ratio of 0.6x, with an order backlog of 16 billion euros at the end of 2025 (-5% quarter-on-quarter)," Jefferies adds.
According to the broker, Technip Energies' fourth-quarter results will allow for estimates for 2026, including revenue and EBITDA margin ranges by segment.
For the PD (Projects Delivery) division, Jefferies expects revenue of 6.6 billion euros; this is already 91% covered by an order backlog of 6 billion euros as of Q3 2025 (compared to 4.1 billion euros and 76% coverage in Q3 2024 for the year 2025). This is supplemented by fourth-quarter order intake, notably a major purchase authorization of 250 to 500 million euros for Commonwealth LNG, for which the final investment decision (FID) is expected in Q1 2026, potentially further boosting PD division revenues for 2026.
For the TPS (Technology, Products & Services) segment, Jefferies forecasts revenue of 2.1 billion euros in 2026 including AM&C, and margins of 15.4%, a year-on-year increase of 90 basis points thanks to the contribution of AM&C, which has higher margins.
Technip Energies N.V. is an Engineering and Technology company specialized in providing projects, technologies, products and services on energy infrastructure both onshore and offshore (LNG, downstream, sustainable chemistry, hydrogen, CO2 management and marine infrastructure). Net sales break down by activity as follows:
- project delivery (70.6%);
- technology integration, equipment sale and services (29.4%).
Net sales are distributed geographically as follows: Europe and Central Asia (16.8%), Africa and the Middle East (59.4%), America (12.9%) and Asia/Pacific (10.9%).
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