Oil drilling equipment manufacturer FMC Technologies, Inc. (FTI) on Tuesday reported an 11% increase in profit for the third quarter from last year, helped by strong demand for its subsea oil and gas processing systems as well as lower expenses. In addition, the year-ago quarter's results include loss from discontinued operations. Looking ahead, the company provided earnings outlook for the fourth quarter above analysts' consensus estimate.
Third-Quarter Results
The Houston, Texas-based company reported net income for the third quarter of $91.6 million ,or $0.73 per share, up from $82.7 million, or $0.64 per share, in the year-ago quarter.
The quarter's results include income from discontinued operations of $0.4 million, while the year-ago quarter results include loss from discontinued operations of $9.7 million, or $0.08 per share.
Income from continuing operations for the quarter declined to $91.8 million from $92.8 million in the previous-year quarter, while earnings per share from continuing operations increased 1% to $0.73 from $0.72 in the prior-year quarter.
On average, fourteen analysts polled by Thomson Reuters expected the company to report earnings of $0.63 per share for the quarter. Analysts' estimates typically exclude special items
Revenue for the third quarter declined 3.5% to $1.09 billion from $1.13 billion in the same period last year, but beat analysts' consensus revenue estimate of $1.04 billion for the quarter.
Peer Performance
Houston, Texas-based Cameron International Corp. (CAM) is slated to report its financial results for the third quarter on November 3. Analysts expect the company to report earnings of $0.53 per share for the quarter on revenues of $1.28 billion.
Other Metrics
FMC Technologies' costs and expenses for the third quarter declined 3.6% to $947.2 million from $982.6 million in the prior-year quarter.
Net foreign exchange losses in the quarter totaled $5.8 million, compared to net gain of $4.7 million in the third quarter of 2008. The company also had an increased liability of $2.1 million associated with company stock held in its non-qualified savings plan, compared to a gain of $5.2 million in the prior-year quarter.
FMC Technologies' total backlog at the end of the third quarter was $3.0 billion, including $2.4 billion in subsea systems. This compares to backlog of $4.29 billion at the end of the year-ago quarter.
The company repurchased 917 thousand shares of its common stock in the third quarter for $38.5 million and now has 5.8 million shares remaining under its share buyback authorization.
Segmental Results
Energy Production Systems Revenue from the company's Energy Production Systems for the third quarter increased 3% year-over-year to $926.9 million. Revenue for subsea systems rose 7% from the year-ago period to $770 million. However, surface wellhead revenue was down 11% from the prior-year quarter, but was flat with the preceding second quarter.
The segment's operating profit for the quarter surged 38% from the previous-year quarter to $140.4 million due to higher operating margins across the segment and increased volume in subsea systems.
Energy Production Systems' inbound orders for the third quarter were $841.6 million, including subsea systems orders of $715 million. This compares to inbound orders of $551.3 million in the year-ago period.
Backlog for Energy Production Systems at the end of the third quarter totaled $2.74 billion, including $2.4 billion in subsea backlog. The segment had reported backlog of $3.92 billion at the end of the previous-year quarter.
Energy Processing Systems
Energy Processing Systems reported revenue for the third quarter of $166.2 million, down 27% from the prior-year period. The decline in revenues came primarily from weakness in the fluid control business, which continued to be impacted by the reduction in North American pressure pumping activity, and from the material handing business that has several projects nearing completion. The segment's operating profit for the quarter fell 42% from the year-ago period to $24.8 million.
Energy Processing Systems' inbound orders for the quarter were $140.8 million, down compared to $237.2 million in the year-ago period. The segment ended the quarter with a backlog of $226.7 million, compared to $375.4 million at the end of the same period last year.
Year-To-Date Results
For the nine months of the year, FMC Technologies reported net income of $268.6 million, down compared to $270 million in the year-ago period. However, on a per share basis, earnings for the period increased to $2.13 from $2.07 in the year-ago period.
The prior-year period results included income from discontinued operations of $11 million, or $0.08 per share.
Income from continuing operations for the nine months increased to $270.0 million, or $2.13 per share, from $260.4 million, or $1.99 per share, in the same period last year.
Revenue for the nine-month period declined 2.9% to $3.25 billion from $3.35 billion in the prior-year period.
Outlook
For the fourth quarter, FMC Technologies forecast earnings per share from continuing operations in a range of $0.70-$0.75. Analysts currently expect the company to report earnings of $0.61 per share for the quarter.
Stock Quotes
FTI closed Tuesday's regular trading session at $56.58, up $0.10 or 0.18% on a volume of 2.12 million shares. In the past 52 weeks, the stock has been trading in a range of $20.27-$59.48.
For comments and feedback contact: editorial@rttnews.com
June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.