TechnipFMC: We Prefer Saipem With More Room To Improve

Valkyrie Trading SocietyInvesting Group LeaderFollow5ShareSavePlay(7min)CommentsSummaryTechnipFMC demonstrates strong margin improvement through disciplined project bidding and integrated delivery, nearing its medium-term margin targets.FTI's backlog growth is robust, particularly in subsea, with later-stage projects expected to further support margin expansion as legacy contracts roll off.But relative valuation favors Saipem, which trades at a significant discount to FTI and stands to benefit from margin recovery, backlog digestion, and Subsea 7 merger synergies.Recent oil services stock rallies may be premature, as oil futures curves suggest normalization by late 2026, challenging the sustainability of elevated activity levels.Looking for a helping hand in the market? Members of The Value Lab get exclusive ideas and guidance to navigate any climate. Learn More » Jeremy Poland/E+ via Getty Images TechnipFMC plc (FTI) has been delivering nicely, with solid margins in both onshore and offshore development businesses. The margin improvements reflect a deliberate profit-first strategy in bidding for projects, as discussed in This article was written byValkyrie Trading Society5.54K FollowersFollowThe Valkyrie Trading Society is a team of analysts sharing high conviction and obscure developed market ideas that are downside limited and likely to generate non-correlated and outsized returns in the context of the current economic environment and forces. They are long-only investors.They lead the investing group The Value Lab where they offer members a portfolio with real time updates, chat to answer questions 24/7, regular global market news reports, feedback on member stock ideas, new trades monthly, quarterly earnings write-ups, and daily macro opinions.Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.