Technip Energies reports strong order growth and backlog expansion despite Middle East disruptions, delaying revenue but maintaining long-term growth confidence.
Technip Energies has begun 2026 on a strong commercial footing, securing more than €6 billion in new orders during the first quarter and expanding its total backlog to over €20 billion. This surge in project awards comes despite ongoing geopolitical tensions in the Middle East, which have disrupted certain operations and prompted the company to revise parts of its forward outlook.
For the quarter, the company reported revenues of €1.8 billion, alongside EBITDA of €149 million. It also generated free cash flow of €132 million, excluding working capital movements and provisions, representing a robust conversion rate of 89% from EBITDA. These results highlight the firm’s ability to maintain financial strength even amid challenging external conditions.
Chief Executive Officer Arnaud Pieton emphasized that the company’s performance reflects its operational resilience and adaptability. He noted that despite significant disruptions caused by the Middle East conflict, Technip Energies managed to deliver solid financial results. The organization’s teams demonstrated flexibility and commitment, enabling the company to sustain revenue generation, profitability, and strong cash flow.
Pieton also underscored the importance of the company’s recent commercial achievements. The €6 billion-plus in new orders secured during the quarter exceeded the company’s total order intake for the entirety of 2025. These contract wins further reinforce Technip Energies’ leading position in key sectors such as liquefied natural gas (LNG) and sustainable aviation fuels. Additionally, the enlarged backlog provides greater visibility for future revenues and strengthens confidence in the company’s medium-term growth trajectory.
However, the CEO acknowledged that the situation in the Middle East continues to pose operational challenges. The conflict has disrupted project execution, supply chains, and on-site activities. In response, the company implemented a comprehensive crisis management framework aimed at protecting its workforce and safeguarding contractual commitments. While some project sites experienced temporary shutdowns, operations have gradually resumed under stricter safety protocols, with most locations now approaching full operational capacity.
From a financial perspective, the company identified two primary areas of impact. First, delays in project execution due to logistical constraints and site disruptions are expected to push some revenue recognition into later periods. Second, the company is incurring additional costs related to enhanced safety measures and maintaining business continuity. Although Technip Energies expects to recover these costs through contractual safeguards, the timing and extent of recovery remain uncertain and will depend on how the geopolitical situation evolves and ongoing commercial negotiations progress.
Assuming that conditions in the Middle East stabilize by the end of the second quarter, the company estimates that approximately €500 million to €600 million in revenue may be deferred beyond 2026. Nevertheless, it anticipates that the overall impact on project margins will be largely contained.
Despite these near-term uncertainties, Technip Energies remains optimistic about long-term growth prospects. The company highlighted that global energy dynamics—particularly the need for enhanced energy security, supply diversification, and decarbonization—are likely to drive sustained investment in the sector. The current supply disruptions underscore the importance of expanding capacity and reducing dependency on single regions or energy sources.
Furthermore, the company emphasized the growing relevance of circular economy principles in ensuring local supply stability. With its strong financial position, strategic focus, and global presence, Technip Energies believes it is well-equipped to navigate current challenges while capitalizing on long-term opportunities in the evolving energy landscape.
