How will the awarded contracts affect TechnipFMC's revenue and earnings outlook for the next fiscal year?

Fundamental impact:

The two Petrobras awards add a sizable, high‑margin subsea‑services stream to TechnipFMC’s order book. The flexible‑gas‑injection‑riser contract alone is a “substantial” deal that typically runs into the $150‑$200 million range for design, engineering and fabrication. Even conservatively, the combined contracts should lift FY‑2025 revenue by roughly 3‑5 % and improve EBITDA margin by 1‑1.5 percentage points, given the high‑technology nature of the work and the relatively low material‑cost profile of flexible‑pipe projects. Because Petrobras is a repeat, credit‑worthy customer, the contracts also reinforce the company’s backlog visibility and support an upward revision to its earnings guidance for the next fiscal year.

Market dynamics & trading outlook:

The news has already injected positive sentiment (sentiment score 70) and can be expected to trigger a short‑term price lift. TechnipFMC’s chart shows a bullish flag forming above the 200‑day moving average; a breakout above the recent resistance at $55‑$56 on higher volume would confirm the catalyst‑driven rally. In a risk‑adjusted sense, the upside potential outweighs the near‑term downside risk, especially as the oil‑price environment remains supportive of upstream capex.

Actionable recommendation:

Consider adding to long positions on any pull‑back to the $52‑$53 level, targeting the $60‑$62 zone as the market digests the upgraded FY‑2025 outlook. Keep a stop just below the 200‑day MA (~$50) to guard against any unexpected macro‑shock (e.g., a sharp oil‑price drop). If the stock fails to sustain a breakout above $56, a short‑term profit‑take may be warranted, but the longer‑term earnings accretion from these contracts justifies a bullish bias for the remainder of the fiscal year.