TechnipFMC plc (FTI)

CIK: 0001681459. SIC: 3533 Oil & Gas Field Machinery & Equipment. Latest 10-K as of: 2026-02-19.

SIC breadcrumb: Manufacturing > Industrial And Commercial Machinery And Computer Equipment > SIC 3533 Oil & Gas Field Machinery & Equipment

SEC company page: https://www.sec.gov/edgar/browse/?CIK=1681459. Latest filing source: 0001681459-26-000010.

Selected Fundamentals

Metric	Value	Unit	FY	Filed
Revenue	9,932,600,000	USD	2025	2026-02-19
Net income	963,900,000	USD	2025	2026-02-19
Assets	10,118,200,000	USD	2025	2026-02-19

Financials

Annual standardized facts from SEC companyfacts as of latest extracted filing date 2026-02-19. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001681459.json. Derived margins are computed from the extracted annual SEC facts.

Flow metrics use full-year FY periods from 10-K/10-K/A filings; balance-sheet metrics use FY-end instants. Missing metrics are omitted rather than fabricated.

Metric	2016	2017	2018	2019	2020	2021	2022	2023	2024	2025
Revenue	9,199,600,000	15,056,900,000	12,552,900,000	6,950,200,000	6,530,600,000	6,403,500,000	6,700,400,000	7,824,200,000	9,083,300,000	9,932,600,000
Net income	393,300,000	113,300,000	-1,921,600,000	-2,415,200,000	-3,287,600,000	13,300,000	-107,200,000	56,200,000	842,900,000	963,900,000
Operating income	766,100,000	1,354,100,000	-532,700,000	-2,105,400,000	-3,244,800,000	183,400,000	375,900,000	658,200,000	1,157,300,000	1,436,100,000
Diluted EPS	3.16	0.24	-4.20	-5.39	-7.33	0.03	-0.24	0.12	1.91	2.30
Assets	18,679,300,000	28,263,700,000	24,784,500,000	23,518,800,000	19,692,600,000	10,020,100,000	9,444,300,000	9,656,600,000	9,869,200,000	10,118,200,000
Liabilities		14,854,300,000	14,357,100,000	15,789,600,000	15,434,600,000	6,601,700,000	6,167,600,000	6,484,500,000	6,730,800,000	6,712,900,000
Stockholders' equity	5,055,800,000	13,387,900,000	10,357,600,000	7,659,300,000	4,154,200,000	3,402,700,000	3,240,200,000	3,136,700,000	3,093,800,000	3,363,800,000
Cash and cash equivalents	6,269,300,000	6,737,400,000	5,540,000,000	1,563,100,000	1,269,200,000	1,327,400,000	1,057,100,000	951,700,000	1,157,700,000	1,031,900,000
Net margin	4.28%	0.75%	-15.31%	-34.75%	-50.34%	0.21%	-1.60%	0.72%	9.28%	9.70%
Operating margin	8.33%	8.99%	-4.24%	-30.29%	-49.69%	2.86%	5.61%	8.41%	12.74%	14.46%

Financial Charts

Quarterly

Quarterly standardized facts from SEC companyfacts as of latest extracted filing date 2026-04-30. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001681459.json.

Flow metrics use discrete quarter-length periods from 10-Q/10-Q/A filings. Q4 revenue and net income are derived only when annual FY and nine-month YTD facts exist for the same fiscal year; derived Q4 values are labeled. EPS Q4 is not derived.

Quarter	End Date	Revenue	Net Income	Diluted EPS	Method
2022-Q2	2022-06-30			0.00	reported discrete quarter
2022-Q3	2022-09-30			-0.02	reported discrete quarter
2023-Q1	2023-03-31			0.00	reported discrete quarter
2023-Q2	2023-06-30	1,972,200,000	-87,200,000	-0.20	reported discrete quarter
2023-Q3	2023-09-30	2,056,900,000	90,000,000	0.20	reported discrete quarter
2023-Q4	2023-12-31	2,077,700,000	53,000,000		derived Q4 = FY annual - nine-month YTD
2024-Q1	2024-03-31	2,042,000,000	157,100,000	0.35	reported discrete quarter
2024-Q2	2024-06-30	2,325,600,000	186,500,000	0.42	reported discrete quarter
2024-Q3	2024-09-30	2,348,400,000	274,600,000	0.63	reported discrete quarter
2024-Q4	2024-12-31	2,367,300,000	224,700,000		derived Q4 = FY annual - nine-month YTD
2025-Q1	2025-03-31	2,233,600,000	142,000,000	0.33	reported discrete quarter
2025-Q2	2025-06-30	2,534,700,000	269,500,000	0.64	reported discrete quarter
2025-Q3	2025-09-30	2,647,300,000	309,700,000	0.75	reported discrete quarter
2025-Q4	2025-12-31	2,517,000,000	242,700,000		derived Q4 = FY annual - nine-month YTD
2026-Q1	2026-03-31	2,492,700,000	260,500,000	0.64	reported discrete quarter

Quarterly Charts

Macro Cross-References

CPIAUCSL - Consumer Price Index for All Urban Consumers: All Items in U.S. City Average
UNRATE - Unemployment Rate
FEDFUNDS - Federal Funds Effective Rate
CES0500000003 - Average Hourly Earnings of All Employees, Total Private
DFEDTARU - Federal Funds Target Range - Upper Limit
DFEDTARL - Federal Funds Target Range - Lower Limit
DGS3MO - Market Yield on U.S. Treasury Securities at 3-Month Constant Maturity
DGS2 - Market Yield on U.S. Treasury Securities at 2-Year Constant Maturity
DGS10 - Market Yield on U.S. Treasury Securities at 10-Year Constant Maturity
DGS30 - Market Yield on U.S. Treasury Securities at 30-Year Constant Maturity
T10Y2Y - 10-Year Treasury Constant Maturity Minus 2-Year Treasury Constant Maturity
CPILFESL - Consumer Price Index for All Urban Consumers: All Items Less Food and Energy
CPIUFDSL - Consumer Price Index for All Urban Consumers: Food
CPIENGSL - Consumer Price Index for All Urban Consumers: Energy
CUSR0000SAH1 - Consumer Price Index for All Urban Consumers: Shelter
PCEPI - Personal Consumption Expenditures: Chain-type Price Index
PCEPILFE - Personal Consumption Expenditures Excluding Food and Energy: Chain-type Price Index
PPIACO - Producer Price Index by Commodity: All Commodities
T10YIE - 10-Year Breakeven Inflation Rate
U6RATE - Total Unemployed, Plus All Marginally Attached Workers Plus Total Employed Part Time for Economic Reasons
PAYEMS - All Employees, Total Nonfarm
CIVPART - Labor Force Participation Rate
EMRATIO - Employment-Population Ratio
UNEMPLOY - Unemployed
CE16OV - Employment Level
ICSA - Initial Claims
JTSJOL - Job Openings: Total Nonfarm
JTSQUR - Quits: Total Nonfarm
GDPC1 - Real Gross Domestic Product
A191RL1Q225SBEA - Real Gross Domestic Product: Percent Change from Preceding Period
INDPRO - Industrial Production: Total Index
TCU - Capacity Utilization: Total Index
HOUST - New Privately-Owned Housing Units Started: Total Units
PERMIT - New Privately-Owned Housing Units Authorized in Permit-Issuing Places: Total Units
RSAFS - Advance Retail Sales: Retail Trade
PCE - Personal Consumption Expenditures
DSPIC96 - Real Disposable Personal Income
PSAVERT - Personal Saving Rate
M2SL - M2
BOPGSTB - U.S. International Trade in Goods and Services: Balance
MSPUS - Median Sales Price of Houses Sold for the United States
HSN1F - New One Family Houses Sold: United States
RHORUSQ156N - Homeownership Rate in the United States
TTLCONS - Total Construction Spending: Total Construction in the United States
RRVRUSQ156N - Rental Vacancy Rate in the United States
TOTALSL - Total Consumer Credit Owned and Securitized
REVOLSL - Revolving Consumer Credit Owned and Securitized
DRCCLACBS - Delinquency Rate on Credit Card Loans, All Commercial Banks
GDP - Gross Domestic Product
GPDI - Gross Private Domestic Investment
GCE - Government Consumption Expenditures and Gross Investment
PCEC - Personal Consumption Expenditures
NETEXP - Net Exports of Goods and Services
GFDEBTN - Federal Debt: Total Public Debt
GFDEGDQ188S - Federal Debt: Total Public Debt as Percent of Gross Domestic Product
FYFSD - Federal Surplus or Deficit
FGRECPT - Federal Government Current Receipts
FGEXPND - Federal Government: Current Expenditures
MANEMP - All Employees, Manufacturing
USCONS - All Employees, Construction
USTRADE - All Employees, Retail Trade
USFIRE - All Employees, Financial Activities
USGOVT - All Employees, Government
AWHAETP - Average Weekly Hours of All Employees, Total Private
DGORDER - Manufacturers' New Orders: Durable Goods
NEWORDER - Manufacturers' New Orders: Nondefense Capital Goods Excluding Aircraft
BUSINV - Total Business Inventories
EXPGS - Exports of Goods and Services
IMPGS - Imports of Goods and Services
IR - Import Price Index (End Use): All Commodities
PPIFIS - Producer Price Index by Commodity: Final Demand

Latest quarter (10-Q)

Latest 10-Q source: 0001681459-26-000026.

Extracted between Part I Item 2 and the next Item 3/4 or Part II heading after HTML sanitization. Confidence: high. Filing date: 2026-04-30. Report date: 2026-03-31.

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

BUSINESS OUTLOOK

Overall Outlook – The global economy is expected to show moderate growth in 2026, led by India, China, and the United States. Resilient consumer spending and easing of monetary policy in key regions should be essential drivers of economic growth. Continued investment in artificial intelligence (AI) is expected to provide additional support. The expanded military activity in the Middle East, shifting trade and inflation dynamics, and an uneven global recovery present risk to the growth outlook.

Persistent geopolitical conflict underscores the strategic importance of energy security worldwide. The current conflict in the Middle East also demonstrates how quickly regional disruptions in the production and transportation of oil and natural gas can impact the balance of global supply. We believe the significant impacts to both security and energy supply resulting from the current conflict are likely to have lasting impacts on the perceived risk assigned to the region.

Over the last several years, offshore markets have attracted a growing share of global capital flows, driven by much-improved economic returns and broad access to these resources. This increased activity has been supported by an expanding set of offshore development opportunities worldwide. A re-rating of risk in the Middle East would likely build further momentum in this shift in capital flows. We see the greatest potential for an acceleration in deepwater opportunities in markets with extensive infrastructure, including the Gulf of America and the North Sea, and regions with previously discovered and well-identified resources that can add material volumes to an operator’s reserve base, such as West Africa. We also expect an increasing role for technology innovation in the delivery of both conventional and new energy supply. In that context, TechnipFMC is well positioned to translate our technological and operational strength into value for our clients.

The long-term outlook for oil and natural gas remains positive. Oil is projected to remain the largest primary energy source, with global demand for natural gas projected to significantly increase, largely due to growth in both electricity demand and industrial activity in developing countries. A significant portion of future gas needs will be sourced from offshore reservoirs, utilizing liquified natural gas (“LNG”) infrastructure to enable transport from major gas producing regions—including the Middle East, Asia Pacific, and Africa—to a broader set of consuming economies. Renewables investment continues, although at a slower pace than previously forecast. Notably, the International Energy Agency revised its market outlook, projecting that oil demand could grow through 2050—a major shift from its previous view that demand would peak by 2030.

Within offshore, we are seeing more clients adopt a portfolio approach to development. Instead of focusing on the next project exclusively, operators are taking a broader portfolio view of their opportunities – executing a vision for their entire asset base. One example of this change is simultaneous development of greenfield assets, where an operator will carry out multiple projects in parallel rather than waiting for completion of the first project to incorporate learnings into subsequent phases. By executing as a single unit, operators benefit from integration and standardization that enable them to reach target production more quickly and economically than would be possible as standalone projects.

We also believe that offshore will play a meaningful role in the development of renewable energy resources and the reduction of carbon emissions. Our efforts are focused on greenhouse gas (“GHG”) removal, offshore floating renewables, and hydrogen solutions. We are also building on our partnerships as we look to expand our position as the leading architect for offshore energy.

In our New Energy business, we are executing multiple first-of-its-kind project awards, including the Mero 3 HISEP® project for Petrobras offshore Brazil. This project is enabling the capture, processing, and reinjection of CO2-rich dense gases on the seabed to reduce emission intensity while increasing production. In the UK, we are executing the first all-electric, subsea iEPCI™ for carbon capture and storage for the Northern Endurance Partnership, a joint venture between bp, Equinor, and TotalEnergies.

Subsea – Innovative approaches to subsea projects have improved project economics through more efficient design and installation of the entire subsea field architecture. Our integrated commercial model, iEPCI™, brought together the complementary work scopes of the subsea production system (“SPS”) with the subsea umbilicals, risers, and flowlines (“SURF”), and installation vessels. iEPCI™ created a new market and helped grow the deepwater

opportunity set for our clients. We also foresee the expanding reach of Subsea Services, derived from an aging installed base that continues to grow.

As the subsea industry continues to evolve, we are driving simplification, standardization, and industrialization to reduce cycle times and further reduce costs. An example of this is Subsea 2.0®, our pre-engineered configurable product offering. This technology simplifies projects by leveraging a Configure-to-Order (“CTO”) model to further accelerate time to first production while driving greater efficiencies for TechnipFMC.

With Subsea 2.0® and CTO, we have designed an architecture, process, tools, and culture that are scalable and transformational to the future of our company. Subsea 2.0® has allowed us to redefine our sourcing strategy and transform our manufacturing flow, resulting in up to 25 percent lower product cost and as much as a 12-month reduction in delivery time for subsea production equipment — savings that are both real and sustainable. This has paved the way for us to adopt a similar operating model for other products within our portfolio, enabling an enterprise-wide way of working.

Given these significant improvements, more offshore discoveries can be developed economically below current oil prices. We believe these fundamental changes are sustainable as a result of new business models and technology pioneered by our company – all of which serve as key enablers in our relentless pursuit of the reduction of project cycle time.

There is also momentum in new offshore frontiers as nations look to expand economic growth through the development of natural resources. We were awarded an iEPCI™ contract for TotalEnergies’ GranMorgu project — the first subsea development in Suriname. In Namibia, there have been multiple discoveries, and operators have initiated appraisal drilling campaigns. We recently announced our participation in Mozambique for Eni’s Coral North project, and we believe that other opportunities in the region will soon follow. We remain confident that further exploration and appraisal activity will result in new projects in other new basins for some time.

As we look beyond the current year, we believe that offshore developments will continue to receive an increasing share of capital investment. The change in spending allocation is due in part to the significant improvements made in developing the large, high quality, and prolific reservoirs found offshore. Innovations such as Subsea 2.0® and iEPCI™ also help provide customers with greater schedule certainty in project execution. We believe this combination of higher economic returns and greater project certainty will provide sustainability to current activity levels offshore, reinforcing our confidence that activity will remain strong through the end of the decade and beyond.

Surface Technologies – North American activity is among the most impacted by commodity prices given the relatively high cost of development in the region. Our surface activities on US land represented less than five percent of total Company revenue in 2025.

International markets comprise a significant portion of segment revenue, representing 65 percent in 2025. These markets are less cyclical, as most activities are undertaken by national oil companies with long-term investment horizons and a lower cost of development. This is most evident in the Middle East, where we have made the investment needed to assist our customers in achieving their desired growth in production. TechnipFMC’s unique capabilities in these markets — which demand higher-specification equipment and local presence, including a services footprint — provides a differentiated growth opportunity for our company.

CONSOLIDATED RESULTS OF OPERATIONS OF TECHNIPFMC PLC

THREE MONTHS ENDED MARCH 31, 2026 AND 2025

Three Months Ended

March 31,

Change

(In millions, except %)

2026

2025

Revenue

2,492.7

2,233.6

259.1

11.6

Costs and expenses

Cost of sales

1,907.4

1,768.7

138.7

7.8

Selling, general and administrative expense

215.9

184.2

31.7

17.2

Research and development expense

17.8

19.1

(1.3)

(6.8)

Restructuring, impairment and other expenses

0.6

1.2

(0.6)

(50.0)

Total costs and expenses

2,141.7

1,973.2

168.5

8.5

Other income (expense), net

6.3

(29.6)

35.9

121.3

Income from equity affiliates

4.5

9.4

(4.9)

(52.1)

Net interest expense

(6.0)

(9.9)

3.9

39.4

Income before income taxes

355.8

230.3

125.5

54.5

Provision for income taxes

95.9

87.0

8.9

10.2

Net income

259.9

143.3

116.6

81.4

Net (income) loss attributable to non-controlling interests

0.6

(1.3)

1.9

146.2

Net income attributable to TechnipFMC plc

260.5

142.0

118.5

83.5

Revenue

Revenue increased by $259.1 million during the three months ended March 31, 2026, compared to the prior year period. The increase was primarily attributable to an increase in Subsea revenue of $272.2 million. This growth was driven by the conversion of backlog, which was 17.4% higher as of December 31, 2025, when compared to December 31, 2024, resulting in increased revenue activity across iEPCI™, flexible supply, SPS supply and subsea services, particularly in Brazil, Mozambique, and Suriname. This increase was partially offset by lower activity in Indonesia, the United Kingdom, and Surface Technologies.

Gross Profit

Gross profit (revenue less cost of sales) increased to $585.3 million during the three months ended March 31, 2026 compared to $464.9 million in the prior year period. The increase was primarily attributable to an increase in Subsea gross profit of $117.9 million, of which $63.5 million was due to favorable activity mix and $54.4 million was due to volume increase.

Selling, General and Administrative Expense

Selling, general and administrative expense increased by $31.7 million for the three months ended March 31, 2026, compared to the same period in 2025, primarily driven by higher share-based compensation expenses.

Other Income (Expense), Net

Other income (expense), net, includes gains and losses associated with the remeasurement of net monetary assets and liabilities, gains and losses on sales of property, plant and equipment, and other non-operating gains and losses. This line item improved year-over-year by $35.9 million, from a net expense in the prior year period to net income during the three months ended March 31, 2026, primarily due to a $24.9 million favorable change in foreign currency impacts, driven by foreign currency losses in the prior year compared to gains in the current year, and an $11.0 million decrease in miscellaneous other non-operating charges.

Income from Equity Affiliates

Income from equity affiliates decreased by $4.9 million for the three months ended March 31, 2026, compared to the same period in 2025. The year-over-year decrease was driven by lower operational activity of our joint ventures.

Net Interest E

[Excerpt truncated for page length; source filing is linked above.]

Latest 10-K MD&A

Extracted between Item 7 and the next Item 7A/8 heading after HTML sanitization. Confidence: high. Filing date: 2026-02-19. Report date: 2025-12-31.

ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

EXECUTIVE OVERVIEW

We are a global leader in energy projects, technologies, systems, and services. We have manufacturing operations worldwide, strategically located to facilitate efficient delivery of these products, technologies, systems, and services to our customers. We report our results of operations in two segments: Subsea and Surface Technologies. Management’s determination of our reporting segments was made on the basis of our strategic priorities and corresponds to the manner in which our Chief Executive Officer reviews and evaluates operating performance to make decisions about resource allocations to each segment.

A summarized description of our products and services and annual financial data for each segment can be found in Note 5 to our consolidated financial statements.

Total Company

•Inbound orders of $11.2 billion drove backlog growth of 15% year-over-year to $16.6 billion;

•Cash provided by operating activities increased 84% to $1.8 billion versus the prior year, with free cash flow growing 113% to $1.4 billion;

•Shareholder distributions more than doubled versus the prior year—returning $1.0 billion through share repurchases and dividends—and authorized additional share repurchases of up to $2 billion;

•Increased Company’s financial flexibility by reducing total short-term and long-term debt by $455.2 million while maintaining cash and cash equivalents above $1.0 billion; and

•Reiterated our commitment to robust shareholder distributions, pledging to return at least 70% of free cash flow to shareholders in 2026.

Subsea

•Delivered on our commitment to achieve $30 billion in Subsea inbound orders over the 3-year period ending 2025, including $10.1 billion of orders in 2025;

•Services inbound increased for a fifth consecutive year to more than $1.8 billion, supported by a growing installed base and aging infrastructure;

•Combination of direct awards, iEPCI™ projects, and services exceeded 80% of Subsea inbound orders for the year, highlighting the strength of our differentiated offerings and innovative technologies; and

•New iEPCI™ alliances with Vår Energi and Cairn Oil & Gas provide additional integrated opportunities.

Surface Technologies

•Inbound orders of $1.1 billion were driven by international markets; and

•Revenue from international markets increased year-over-year, representing 65% of segment revenue; and

•Experienced further commercial success of iComplete®—our high-performance, surface pressure containment ecosystem—with increased client adoption in high activity basins.

We finished the year having delivered on many notable achievements. Importantly, these results reflect major milestones on our more ambitious journey ahead. We enter 2026 with a strong market outlook and a further step-up in our targeted financial performance.

BUSINESS OUTLOOK

Overall Outlook – The global economy is expected to show moderate growth in 2026, led by India, China, and the United States. Resilient consumer spending and easing of monetary policy in key regions should be essential drivers of economic growth. Continued investment in artificial intelligence (AI) is expected to provide additional support. Shifting trade and inflation dynamics and an uneven global recovery present risk to the growth outlook. At the same time, persistent geopolitical conflicts underscore the strategic importance of energy security worldwide.

In April 2025, OPEC+ members took actions to unwind a series of voluntary production cuts. After restoring over two million barrels of production, further output expansion was postponed to prevent oversupply and maintain market stability. Oil forecasts for Brent crude average between $50 and $60 per barrel in 2026, with increased supply expected to outpace growth in near-term demand. Natural gas prices are forecast to remain relatively stable, with rising demand from AI-driven data centers likely to be met by growth in global supply, primarily from increased exports of liquefied natural gas (LNG) from the United States.

The long-term outlook for oil and natural gas is positive. Oil is projected to remain the largest primary energy source, with global demand for natural gas projected to significantly increase, largely due to growth in both electricity demand and industrial activity in developing countries. Renewables investment continues, although at a slower pace than previously forecast. Notably, the International Energy Agency revised its market outlook, projecting that oil demand could grow through 2050—a major shift from its previous view that demand would peak by 2030.

We believe that offshore and Middle East markets will maintain investment preference for operators, with deepwater attracting a growing share of global capital flows, driven by much-improved economic returns and broad access to these resources. We also expect an increasing role for technology innovation in the delivery of both conventional and new energy supply. In that context, TechnipFMC is well positioned to translate our technological and operational strength into value for our clients.

operator will carry out multiple projects in parallel rather than waiting for completion of the first project to incorporate learnings into subsequent phases. By executing as a single unit, operators benefit from integration and standardization that enable them to reach target production more quickly and economically than would be possible as standalone projects.

Subsea – Innovative approaches to subsea projects have improved project economics through more efficient design and installation of the entire subsea field architecture. Our integrated commercial model, iEPCI™, brought together the complementary work scopes of the subsea production system (SPS) with the subsea umbilicals, risers, and flowlines (SURF), and installation vessels. iEPCI™ created a new market and helped grow the deepwater opportunity set for our clients. We also foresee the expanding reach of Subsea Services, derived from an aging installed base that continues to grow.

investment needed to assist our customers in achieving their desired growth in production. TechnipFMC’s unique capabilities in these markets — which demand higher-specification equipment and local presence, including a services footprint — provides a differentiated growth opportunity for our company.

CONSOLIDATED RESULTS OF OPERATIONS

This section of this Annual Report on Form 10-K generally discusses 2025 and 2024 items and year-to-year comparisons between 2025 and 2024. Discussions of 2023 items and year-to-year comparisons between 2024 and 2023 that are not included in this Annual Report on Form 10-K can be found in “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in Part II, Item 7 of our Annual Report on Form 10-K for the year ended December 31, 2024.

We report our results of operations in U.S. dollars; however, our earnings are generated in various currencies worldwide. In order to provide worldwide consolidated results, the earnings of subsidiaries functioning in their local currencies are translated into U.S. dollars based upon the average exchange rate during the period. While the U.S. dollar results reported reflect the actual economics of the period reported upon, the variances from prior periods include the impact of translating earnings at different rates.

Year Ended December 31,

Change

(In millions, except percentages)

2025

2024

2023

2025 vs. 2024

2024 vs. 2023

Revenue

9,932.6

9,083.3

7,824.2

849.3

9.4

1,259.1

16.1

Costs and expenses

Cost of sales

7,751.2

7,360.2

6,550.1

391.0

5.3

810.1

12.4

Selling, general and administrative expense

705.3

667.1

675.9

38.2

5.7

(8.8)

(1.3)

Research and development expense

83.1

73.4

69.0

9.7

13.2

4.4

6.4

Restructuring, impairment and other expenses

72.8

25.8

20.0

47.0

182.2

5.8

29.0

Total costs and expenses

8,612.4

8,126.5

7,315.0

485.9

6.0

811.5

11.1

Other income (expense), net

(57.7)

(45.9)

(248.3)

(11.8)

(25.7)

202.4

81.5

Income from equity affiliates

47.0

21.7

34.4

25.3

116.6

(12.7)

(36.9)

Gain on disposal of Measurement Solutions business

—

71.3

—

(71.3)

(100.0)

71.3

100.0

Net interest expense

(39.5)

(63.5)

(88.7)

24.0

37.8

25.2

28.4

Income before income taxes

1,270.0

940.4

206.6

329.6

35.0

733.8

355.2

Provision for income taxes

302.9

85.1

154.7

217.8

255.9

(69.6)

(45.0)

Net income

967.1

855.3

51.9

111.8

13.1

803.4

1,548.0

(Income) loss attributable to non-controlling interests

(3.2)

(12.4)

4.3

9.2

74.2

(16.7)

(388.4)

Net income attributable to TechnipFMC plc

963.9

842.9

56.2

121.0

14.4

786.7

1,399.8

Results of Operations in 2025 Compared to 2024

Revenue

Revenue increased by $849.3 million in 2025, compared to the same period in 2024. The increase was primarily attributable to an increase in Subsea revenue of $846.0 million. This growth was driven by the conversion of a backlog, 11.1% higher as of December 31, 2024, when compared to December 31, 2023, resulting in increased revenue activity across iEPCI™, flexible supply and subsea services particularly in Brazil, Norway, Nigeria and Israel. Surface Technologies revenue increased by $3.3 million compared to the same period in 2024, reflecting a $53.0 million increase from higher activity in the Middle East, Europe and Africa. This increase was offset by a $49.7 million decline in revenue due to lower activity in North America, Latin America and the sale of the Measurement Solutions business (“MSB”).

Gross Profit

Gross profit (revenue less cost of sales) increased to $2,181.4 million in 2025 compared to $1,723.1 million in 2024. Subsea gross profit increased year-over-year by $437.3 million, of which $267.5 million was due to a favorable activity mix and $169.8 million was due to volume increase. Surface Technologies gross profit increased by $17.5 million compared to the same period in 2024. The increase was primarily due to $47.4 million attributable to strong

activity in the Middle East, Europe and Africa, partially offset by a decrease of $30.0 million due to lower activity in North America, Latin America, Asia Pacific as well as the sale of MSB.

Selling, General and Administrative Expense

Selling, general and administrative expense increased by $38.2 million year-over-year, driven by an increase in costs associated with our support functions.

Restructuring, Impairment and Other Expenses

We incurred $72.8 million of restructuring, impairment and other expenses in 2025, compared to $25.8 million in 2024, primarily related to additional business transformation initiatives designed to simplify and industrialize our organization, driving increased efficiency and greater operating leverage.

Other Income (Expense), Net

Other income (expense), net includes gains and losses associated with the remeasurement of net monetary assets and liabilities, gains and losses on sales of property, plant and equipment, and non-operating gains and losses. The net increase in expense of $11.8 million was primarily due to an increase in miscellaneous other non-operating charges of $28.7 million, offset by a decrease in foreign currency loss of $16.8 million.

Income from Equity Affiliates

For the year ended December 31, 2025, income from equity affiliates increased by $25.3 million compared to the same period in 2024. The year-over-year increase was driven by an increase in the operational activity of our joint ventures.

Gain on disposal of Measurement Solutions business

For the year ended December 31, 2024, we recognized a gain of $71.3 million from the sale of equity interests and assets of MSB.

Net Interest Expense

Net interest expense decreased by $24.0 million in 2025, compared to 2024, primarily due to the reduction in outstanding debt.

Provision for Income Taxes

Our provision for income taxes for 2025 and 2024 reflected effective tax rates of 23.9% and 9.0%, respectively. The change in the effective tax rate was mainly due to changes of valuation allowances on some of our deferred tax assets and geographical profit mix year-over-year.

Our effective tax rate can fluctuate depending on our country mix of earnings, since our foreign earnings are generally subject to tax rates that differ from the United Kingdom’s statutory rate.

OPERATING RESULTS OF BUSINESS SEGMENTS

Segment operating profit is defined as total segment revenue less segment operating expenses. Certain items have been excluded in computing segment operating profit and are included in corporate items. See Note 5 to our consolidated financial statements for further details.

Subsea

Year Ended December 31,

Favorable/(Unfavorable)

(In millions, except %)

2025

2024

2023

2025 vs. 2024

2024 vs. 2023

Revenue

8,665.9

7,819.9

6,434.8

846.0

10.8

1,385.1

21.5

Operating profit

1,299.4

953.1

543.6

346.3

36.3

409.5

75.3

Operating profit as a percentage of revenue

15.0

12.2

8.4

2.8

bps

3.8

bps

Subsea revenue increased $846.0 million during the year ended December 31, 2025, compared to the same period in 2024, related to higher energy demand and upstream spending, further aided by our unique commercial offerings. The increase in revenue was driven by $433.7 million from Brazil, $211.5 million from Norway, $211.3 million from Nigeria and $177.6 million from Israel, driven by higher iEPCI™, flexible supply and services activities. The rest of the world contributed a net decrease of $188.1 million primarily due to completion of projects in the United States and Angola.

Subsea operating profit for the year ended December 31, 2025, increased by $346.3 million. This was largely due to favorable activity mix, which contributed $267.5 million, and higher volume, which added $169.8 million. These improvements were partially offset by $51.6 million in increased operating expense related to the higher activity and $39.4 million of restructuring expense.

Surface Technologies

Year Ended December 31,

Favorable/(Unfavorable)

(In millions, except %)

2025

2024

2023

2025 vs. 2024

2024 vs. 2023

Revenue

1,266.7

1,263.4

1,389.4

3.3

0.3

(126.0)

(9.1

Operating profit

136.7

204.2

114.6

(67.5)

(33.1

89.6

78.2

Operating profit as a percentage of revenue

10.8

16.2

8.2

(5.4)

bps

8.0

bps

Surface Technologies revenue increased by $3.3 million, compared to the same period in 2024, largely attributable to $53.0 million increase in revenue from strong activity in the Middle East, Europe and Africa. This increase was offset by a $49.7 million decrease due to lower activity in North America, Latin America and the sale of MSB.

Surface Technologies operating profit decreased by $67.5 million compared to the same period in 2024. The decline was mainly due to the $75.2 million gain on the sale of MSB recorded in the first quarter of 2024, partially offset by $12.0 million in higher restructuring and impairment charges in 2025. Excluding these items, operating profit increased by $19.7 million, driven by stronger profitability in the Middle East, Europe, and Africa, partially offset by lower activity in North America and other international regions.

Corporate Items

Year Ended December 31,

Favorable/(Unfavorable)

(In millions, except %)

2025

2024

2023

2025 vs. 2024

2024 vs. 2023

Corporate expense

(114.9)

(124.9)

(243.9)

10.0

8.0

119.0

48.8

Corporate expense decreased by $10.0 million compared to the same period in the prior year, due to decreased costs associated with our corporate support functions.

INBOUND ORDERS AND ORDER BACKLOG

Inbound orders — Inbound orders represent the estimated sales value of confirmed customer orders received during the reporting period.

Inbound Orders

Year Ended December 31,

(In millions)

2025

2024

Subsea

10,060.4

10,403.5

Surface Technologies

1,095.8

1,171.1

Total inbound orders

11,156.2

11,574.6

Order backlog - Order backlog is calculated as the estimated sales value of unfilled, confirmed customer orders at the reporting date. Backlog reflects the current expectations for the timing of project execution. See Note 4 to our consolidated financial statements for further details.

Order Backlog

December 31,

(In millions)

2025

2024

Subsea

15,871.7

13,518.1

Surface Technologies

699.9

858.2

Total order backlog

16,571.6

14,376.3

Subsea - Subsea backlog of $15,871.7 million as of December 31, 2025 increased by $2,353.6 million compared to December 31, 2024, and was composed of various subsea projects, including TotalEnergies GranMorgu and Mozambique LNG; bp Tiber, Kaskida and NEP, Shell Orca and Bonga North; Equinor Raia and Johan Sverdrup Phase 3; Petrobras Mero 3 HISEP® and Buzios 6; Energean Katlan; ENI Coral North and ExxonMobil Whiptail and Hammerhead.

Surface Technologies - Order backlog for Surface Technologies as of December 31, 2025, decreased by $158.3 million, compared to December 31, 2024. Surface Technologies’ backlog of $699.9 million as of December 31, 2025, was composed primarily of projects for customers in the Middle East, namely ADNOC and Saudi Aramco. The remaining backlog was composed of various projects in the rest of the world.

LIQUIDITY AND CAPITAL RESOURCES

Most of our cash is managed centrally and flows through bank accounts controlled and maintained by TechnipFMC globally in various jurisdictions to best meet the liquidity needs of our global operations.

Net Cash - Net cash is a non-GAAP financial measure reflecting cash and cash equivalents, net of debt. Management uses this non-GAAP financial measure to evaluate our capital structure and financial leverage. We believe net cash, or net debt, is a meaningful financial measure that may assist investors in understanding our financial condition and recognizing underlying trends in our capital structure. Net cash should not be considered an alternative to, or more meaningful than, cash and cash equivalents as determined in accordance with GAAP or as an indicator of our operating performance or liquidity.

The following table provides a reconciliation of our cash and cash equivalents to net cash, utilizing details of classifications from our consolidated balance sheets.

Year Ended December 31,

(In millions)

2025

2024

Cash and cash equivalents

1,031.9

1,157.7

Short-term debt and current portion of long-term debt

(34.3)

(277.9)

Long-term debt, less current portion

(395.7)

(607.3)

Net cash

601.9

272.5

Cash Flows

Cash flows for the years ended December 31, 2025, 2024, and 2023 were as follows:

Year Ended December 31,

(In millions)

2025

2024

2023

Cash provided by operating activities

1,764.6

961.0

693.0

Cash required by investing activities

(298.3)

(75.8)

(125.6)

Cash required by financing activities

(1,620.9)

(648.0)

(656.5)

Effect of exchange rate changes on cash and cash equivalents

28.8

(31.2)

(16.3)

Increase (decrease) in cash and cash equivalents

(125.8)

206.0

(105.4)

(Increase) decrease in working capital

302.1

(98.9)

302.2

Free cash flow

1,447.4

679.4

467.8

Operating cash flows - During 2025 and 2024, we generated $1,764.6 million and $961.0 million in operating cash flows, respectively. The increase of $803.6 million in 2025, as compared to 2024, was due to increased volume and an improved mix of projects resulting in strong cash collections, offset by a higher volume of vendor payments to support the higher business activity.

Investing cash flows - We used $298.3 million and $75.8 million in investing activities during 2025 and 2024, respectively. The increase of $222.5 million in cash used was primarily due to $186.1 million in proceeds received from the sale of MSB in 2024, and a $35.6 million increase in capital expenditures in 2025 as compared to the same period in 2024.

Financing cash flows - Financing activities used $1,620.9 million and $648.0 million in 2025 and 2024, respectively. The increase of $972.9 million was mainly due to an increase of $518.2 million in share repurchases and an increase in net debt repayments of $382.0 million as compared to the same period in 2024. The 5.75% 2020 Private Placement Notes matured and were repaid and the 6.50% 2021 Notes were repaid during 2025.

The change in working capital represents total changes in current assets and liabilities.

Free cash flow is defined as operating cash flows from operations less capital expenditures. Management uses this non-GAAP financial measure to evaluate our financial condition. We believe free cash flow is a meaningful financial measure that may assist investors in understanding our financial condition and results of operations. The following table reconciles cash provided by operating activities, which is the most directly comparable financial measure determined in accordance with GAAP, to free cash flow (non-GAAP measure).

Year Ended December 31,

(In millions)

2025

2024

2023

Cash provided by operating activities

1,764.6

961.0

693.0

Capital expenditures

(317.2)

(281.6)

(225.2)

Free cash flow

1,447.4

679.4

467.8

Debt and Liquidity

We are committed to maintaining a capital structure that provides sufficient cash resources to support future operating and investment plans. We maintain a level of liquidity sufficient to allow us to meet our cash needs in both the short term and long term.

Availability of borrowings under the Credit Agreement is reduced by the outstanding commercial paper and letters of credit issued against the facility. As of December 31, 2025 there were no letters of credit or commercial paper outstanding, and our availability under the Credit Agreement was $1,250.0 million.

As of December 31, 2025, TechnipFMC was in compliance with all debt covenants. See Note 14 to our consolidated financial statements for further detail.

Credit Ratings - As of December 31, 2025, our credit ratings were as follows:

•S&P: BBB- (long‑term) and A‑3 (short‑term)

•Moody’s: Baa2 (long‑term) and P‑2 (short‑term)

•Fitch: BBB- (long‑term)

During 2024 and 2025, S&P, Moody’s and Fitch upgraded our ratings to investment‑grade levels. The investment-grade ratings from S&P (March 2024) and Fitch (June 2024), together with the satisfaction of the other conditions under our Credit Agreement, resulted in the release of the collateral that previously secured the Credit Agreement and the Performance LC Credit Agreement.

Restoration of investment‑grade status enhances our financial flexibility by improving access to the commercial paper market and lowering our cost of borrowing. Additional information regarding our debt is provided in Note 14.

Dividends - Our Board of Directors authorized and declared a quarterly cash dividend of $0.05 per share during each quarter of 2025. The cash dividends paid during the year ended December 31, 2025 were $82.3 million. These dividends represent $0.20 per share on an annualized basis. We intend to pay dividends on a quarterly basis, subject to review and approval by our Board of Directors in its sole discretion.

Share Repurchase - On October 22, 2025, our Board of Directors authorized additional share repurchases of up to $2.0 billion, which increased the Company’s total share repurchase authorization to $3.8 billion under our share repurchase program, and pursuant to this share repurchase program, we repurchased $918.3 million of ordinary shares during the year ended December 31, 2025.

Based upon the remaining repurchase authority of $2.2 billion and the closing stock price as of December 31, 2025, approximately 48.8 million ordinary shares could be subject to repurchase. Since the initial share repurchase authorization in July 2022, we have purchased an aggregate amount of $1.6 billion of ordinary shares through December 31, 2025. All shares repurchased were immediately cancelled.

Credit Risk Analysis

For the purposes of mitigating the effect of the changes in exchange rates, we hold derivative financial instruments. Valuations of derivative assets and liabilities reflect the fair value of the instruments, including the values associated with counterparty risk. These values must also take into account our credit standing, thus including the valuation of the derivative instrument and the value of the net credit differential between the counterparties to the derivative contract. Adjustments to our derivative assets and liabilities related to credit risk were not material for any period presented.

The income approach was used as the valuation technique to measure the fair value of foreign currency derivative instruments on a recurring basis. This approach calculates the present value of the future cash flow by measuring the change from the derivative contract rate and the published market indicative currency rate, multiplied by the contract notional values. Credit risk is then incorporated by reducing the derivative’s fair value in asset positions by the result of multiplying the present value of the portfolio by the counterparty’s published credit spread. Portfolios in a liability position are adjusted by the same calculation; however, a spread representing our credit spread is used.

Our credit spread, and the credit spread of other counterparties not publicly available, are approximated using the spread of similar companies in the same industry, of similar size, and with the same credit rating. See Notes 21 and 22 to our consolidated financial statements for further details.

At this time, we have no credit-risk-related contingent features in our agreements with the financial institutions that would require us to post collateral for derivative positions in a liability position.

Contractual and Other Obligations

The Company’s principal contractual commitments include purchase obligations, repayments of long-term debt and related interest, and payments under operating and finance leases. As of December 31, 2025, we had $2.9 billion of purchase obligations, more than 93% of which is short-term. Substantially all of these commitments are associated with purchases made to fulfill our customer’s orders, the costs associated with these agreements will ultimately be reflected in cost of sales in our consolidated statements of income.

Refer to respective notes to the consolidated financial statements for further information about our share repurchase program (Note 15), long-term debt obligations (Note 14), guarantees (Notes 10 and 18), and lease payment obligations (Note 3).

Financial Position Outlook

We are committed to a strong balance sheet. We continue to maintain sufficient liquidity to support the needs of the business through growth, cyclicality and unforeseen events. We continue to maintain and drive sustainable leverage to preserve access to capital throughout the cycle. Our capital expenditures can be adjusted and managed to match market demand and activity levels. Projected capital expenditures do not include all contingent capital that may be needed to respond to contract awards. In maintaining our commitment to sustainable leverage and liquidity, we expect to be able to continue to generate cash flow available for investment in growth and distribution to shareholders through the business cycle.

CRITICAL ACCOUNTING ESTIMATES

The preparation of financial statements in conformity with GAAP requires management to make certain estimates, judgments and assumptions about future events that affect the reported amounts of assets and liabilities at the date of the financial statements, the reported amounts of revenue and expenses during the periods presented and the related disclosures in the accompanying notes to the financial statements. Management has reviewed these critical accounting estimates with the Audit Committee of our Board of Directors. We believe the following critical accounting estimates used in preparing our financial statements address all important accounting areas where the nature of the estimates or assumptions is material due to the levels of subjectivity and judgment necessary to account for highly uncertain matters or the susceptibility of such matters to change. See Note 1 to our consolidated financial statements for further details.

Revenue Recognition

The majority of our revenue is derived from long-term contracts that can span several years. We account for revenue in accordance with Accounting Standard Codification (“ASC”) 606, Revenues from Contracts with Customers. The unit of account in ASC 606 is a performance obligation. A contract’s transaction price is allocated to each distinct performance obligation and recognized as revenue when, or as, the performance obligation is satisfied. Our performance obligations are satisfied over time as work progresses or at a point in time.

A significant portion of our total revenue recognized over time relates to our Subsea segment, for the subsea exploration and production equipment projects that involve the design, engineering, manufacturing, construction, and assembly of complex systems. Because of control transferring over time, revenue is recognized based on the extent of progress towards completion of the performance obligation. The selection of the method to measure progress towards completion requires judgment and is based on the nature of the products or services to be provided. We generally use the cost-to-cost measure of progress for our contracts because it best depicts the transfer of control to the customer that occurs as we incur costs on our contracts. Under the cost-to-cost measure of progress, the extent of progress towards completion is measured based on the ratio of costs incurred to date to the total estimated costs at completion of the performance obligation. Revenues are recorded proportionally as costs are incurred.

Due to the nature of the work required to be performed on many of our performance obligations, the estimation of total revenue and cost at completion is complex, subject to many variables, and requires significant judgment. It is common for our long-term contracts to contain award fees, incentive fees, or other provisions that can either increase or decrease the transaction price. We include estimated amounts in the transaction price when we believe we have an enforceable right to the modification, the amount can be estimated reliably, and its realization is probable. The estimated amounts are included in the transaction price to the extent it is probable that a significant reversal of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is resolved.

We execute contracts with our customers that clearly describe the equipment, systems, and/or services. After analyzing the drawings and specifications of the contract requirements, our project engineers estimate total contract costs based on their experience with similar projects and then adjust these estimates for specific risks associated with each project, such as technical risks associated with a new design. Costs associated with specific risks are estimated by assessing the probability that conditions arising from these specific risks will affect our total cost to complete the project. After work on a project begins, assumptions that form the basis for our calculation of total project cost are examined on a regular basis and our estimates are updated to reflect the most current information and management’s best judgment.

Adjustments to estimates of contract revenue, total contract cost, or extent of progress toward completion are often required as work progresses under the contract and as experience is gained, even though the scope of work required under the contract may not change. The nature of accounting for long-term contracts is such that refinements of the estimating process for changing conditions and new developments are continuous and characteristic of the process. Consequently, the amount of revenue recognized over time is sensitive to changes in our estimates of total contract costs. There are many factors, including, but not limited to, the ability to properly execute the engineering and design phases consistent with our customers’ expectations, the availability and costs of labor and material resources, productivity, and weather, all of which can affect the accuracy of our cost estimates, and ultimately, our future profitability.

Our gross profit for the year ended December 31, 2025 was positively impacted on a net basis by approximately $87.0 million, as a result of aggregate changes in contract estimates related to projects that were in progress as of December 31, 2024 with net $66.1 million favorable and $20.9 million favorable in our Subsea and Surface Technologies segments, respectively.

Certain projects were significantly impacted negatively by changes to estimated project costs during the period, resulting in an impact of $115.5 million. These were offset partially by projects with material positive impacts from favorable negotiations of variable considerations of $72.8 million. The remaining other changes resulted in a net positive impact of $129.7 million.

Accounting for Income Taxes

Our income tax expense, deferred tax assets and liabilities, and reserves for uncertain tax positions reflect management’s best assessment of estimated future taxes to be paid. We are subject to income taxes in the United Kingdom and numerous foreign jurisdictions. Significant judgments and estimates are required in determining our consolidated income tax expense.

In determining our income tax provision, we assess temporary differences resulting from differing treatments of items for tax and accounting purposes. These differences result in deferred tax assets and liabilities, which are recorded in our consolidated balance sheets. When we maintain deferred tax assets, we must assess the likelihood that these assets will be recovered through adjustments to future taxable income. To the extent we believe recovery is not likely, we establish a valuation allowance. We record a valuation allowance to reduce the asset to a value we believe will be recoverable based on our expectation of future taxable income. We believe the accounting estimate related to the valuation allowance is a critical accounting estimate because it is highly susceptible to change from period to period, requires management to make assumptions about our future income over the lives of the deferred tax assets, and finally, the impact of increasing or decreasing the valuation allowance is potentially material to our results of operations.

Forecasting future income requires us to use a significant amount of judgment. In estimating future income, we use our internal operating budgets and long-range planning projections. We develop our budgets and long-range projections based on recent results, trends, economic and industry forecasts influencing our segments’ performance, our backlog, planned timing of new product launches; and customer sales commitments. Significant changes in our judgment related to the expected realizability of a deferred tax asset results in an adjustment to the associated valuation allowance.

We continuously assess the realizability of deferred tax assets at each balance sheet date across all jurisdictions in which we operate. During 2025, $142.8 million was released from our valuation allowance, while we have established positions of $134.2 million related to different jurisdictions. The release of the valuation allowance was primarily attributable to the anticipated utilization of deferred tax assets in Brazil and foreign tax credits in the United States. This outcome was influenced by sustained positive earnings, projected taxable profits, and internal restructuring initiatives that are expected to enable the utilization of existing tax attributes. We continue to assess the need to record a valuation allowance when it is not more likely than not that the deferred tax assets will be utilized in upcoming years or prior to expiration.

The calculation of our income tax expense involves dealing with uncertainties in the application of complex tax laws and regulations in numerous jurisdictions in which we operate. We recognize tax benefits related to uncertain tax positions when, in our judgment, it is more likely than not that such positions will be sustained on examination, including resolutions of any related appeals or litigation, based on the technical merits. We adjust our liabilities for uncertain tax positions when our judgment changes as a result of new information previously unavailable. Due to the complexity of some of these uncertainties, their ultimate resolution may result in payments that are materially different from our current estimates. Any such differences will be reflected as adjustments to income tax expense in the periods in which they are determined.

Accounting for Pension and Other Post-retirement Benefit Plans

The determination of the projected benefit obligations of our pension and other post-retirement benefit plans are important to the recorded amounts of such obligations in our consolidated balance sheets and to the amount of pension expense in our consolidated statements of income. In order to measure the obligations and expense associated with our pension benefits, management must make a variety of estimates, including discount rates used to value certain liabilities, expected return on plan assets set aside to fund these costs, rate of compensation increase, employee turnover rates, retirement rates, mortality rates and other factors. We update these estimates on an annual basis or more frequently upon the occurrence of significant events. These accounting estimates bear the risk of change due to the uncertainty and difficulty in estimating these measures. Different estimates used by management could result in our recognition of different amounts of expense over different periods of time.

Due to the specialized and statistical nature of these calculations which attempt to anticipate future events, we engage third-party specialists to assist management in evaluating our assumptions as well as appropriately measuring the costs and obligations associated with these pension benefits. The discount rate and expected long-term rate of return on plan assets are based on investment yields available and the historical performance of our plan assets, respectively. The timing and amount of cash outflows related to the bonds included in the indices matches estimated defined benefits payments. These measures are critical accounting estimates because they are subject to management’s judgment and can materially affect net income.

The actuarial assumptions and estimates made by management in determining our pension benefit obligations may materially differ from actual results as a result of changing market and economic conditions and changes in plan participant assumptions. While we believe the assumptions and estimates used are appropriate, differences in actual experience or changes in plan participant assumptions may materially affect our financial position or results of operations.

The following table illustrates the sensitivity of changes in the discount rate and expected long-term return on plan assets on pension expense and the projected benefit obligation:

(In millions, except basis points)

Increase (Decrease) in 2025 Pension Expense Before Income Taxes

Increase (Decrease) in Projected Benefit Obligation as of December 31, 2025

25 basis point decrease in discount rate

0.3

21.4

25 basis point increase in discount rate

(0.3)

(20.4)

25 basis point decrease in expected long-term rate of return on plan assets

1.9

N/A

25 basis point increase in expected long-term rate of return on plan assets

(1.9)

N/A

Impairment of Long-Lived and Intangible Assets

Long-lived assets, including vessels, property, plant and equipment, identifiable intangible assets being amortized, and capitalized software costs are reviewed for impairment whenever events or changes in circumstances indicate the carrying amount of the long-lived asset may not be recoverable. The carrying amount of a long-lived asset is not recoverable if it exceeds the sum of the undiscounted cash flows expected to result from the use and eventual disposition of the asset. If it is determined that an impairment loss has occurred, the loss is measured as the amount by which the carrying amount of the long-lived asset exceeds its fair value. The determination of future cash flows as well as the estimated fair value of long-lived assets involves significant estimates on the part of management. Because there usually is a lack of quoted market prices for long-lived assets, fair value of impaired assets is typically determined based on the present values of expected future cash flows using discount rates believed to be consistent with those used by principal market participants or based on a multiple of operating cash flows validated with historical market transactions of similar assets where possible. The expected future cash flows used for impairment reviews and related fair value calculations are based on judgmental assessments of revenue, forecasted utilization, operating costs and capital decisions, and all available information at the date of review. If future market conditions deteriorate beyond our current expectations and assumptions, impairments of long-lived assets may be identified if we conclude that the carrying amounts are no longer recoverable.

RECENTLY ISSUED ACCOUNTING STANDARDS

See Note 2 to our consolidated financial statements for further details.