A Potential SpaceX Deal Could Meaningfully Accelerate Growth for Technip Stock

Technip Energies (THNPY) stock has declined by 22.5% in the last 52 weeks, with the Middle East conflict a key negative catalyst. As a result of this correction, Technip stock trades at an attractive forward price-earnings ratio of 18. 

While geopolitical tensions in the Middle East persist, there are emerging catalysts for Technip. It was recently reported that Technip is a contender for a potential $10 billion rocket fuel deal with SpaceX (SPCX). With the first Starship launch targeted for 2029, Elon Musk has been pushing for rapid construction, and a potential deal for Technip would imply healthy revenue growth over the next 36 months. It’s therefore not surprising that this news translated into a sharp rally for THNPY stock. 

The company’s results for the first half of 2026 also had multiple positives. The order backlog swelled to €25 billion, which implied a healthy order intake of €12.7 billion in six months. Importantly, new orders outside the Middle East were approximately 75% over the trailing 24 months. With higher revenue visibility and geographical diversification, Technip is positioned for value creation. 

It’s also worth noting that despite the Middle East crisis, activity growth in LNG and decarbonization projects in the U.S. and Europe translated into 1% top-line growth for 1H26. 

About Technip Energies Stock

Headquartered in Nanterre, France, Technip Energies is an engineering and technology company with a presence in Europe, Central Asia, Africa, the Middle East, Asia Pacific, and the Americas. The company holds a leadership position in LNG, hydrogen, ethylene, sustainable chemistry, and CO2 management. 

Technip operates in two segments: Technology, Products and Services and Project Delivery. The company is innovation-driven with four R&D labs and 2,850 granted patents. 

To its credit, Technip has produced the world’s first sustainable aviation fuel from non-oil-based feedstock. Further, Technip is positioned to benefit from the transition toward a hydrogen economy and technologies such as a carbon capture solution. 

For FY25, Technip reported revenue of €7.2 billion with an EBITDA margin of 9%. Further, the company ended the fiscal year with a €16 billion order backlog that provides clear revenue visibility.

However, it’s worth noting that Technip stock has declined by 15.5% in the last six months. The key factor is the Middle East conflict that has impacted the company’s profitability. 

Clear Revenue Visibility

For the first half of 2026, Technip reported revenue of €3.7 billion. Further, the company expects to execute €3.7 billion in backlog in the second half of the year. This would imply full-year revenue of €7.4 billion, which will be marginally higher than FY25. Management is guiding higher, though, forecasting roughly €7.6 billion to €8.3 billion.

Additionally, Technip already has an executable order backlog of €6.9 billion for 2027. Considering the order intake in the first half of the year, it’s likely that the backlog for FY27 will continue to increase. 

Therefore, even with tensions in the Middle East, the company is positioned for steady growth and cash flow upside. A potential order of $10 billion from SpaceX can significantly change the outlook for 2027 to 2029. 

What Do Analysts Say About THNPY Stock?

Based on three analysts with coverage, THNPY stock has a consensus “Hold” rating. While one analyst has a “Strong Buy” rating for the stock, one has a “Hold,” and the other a “Strong Sell." 

Concluding Views

For the first half of 2026, Technip reported gross cash of €4.8 billion. Even after reducing the financial debt and project debt component, the net cash buffer stands at €900 million. The credit profile, therefore, remains strong, and it’s likely that project execution meets the timelines. 

Overall, Technip has navigated challenging times due to geopolitical frictions. However, with a swelling backlog and the advantage of innovation, the company is well positioned for potential growth acceleration. At current valuations, Technip stock seems attractive for long-term investors.