Technip Energies NV (XPAR:TE) Gross Margin % : 15.95% (As of Dec. 2023)

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What is Technip Energies NV Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Technip Energies NV's Gross Profit for the six months ended in Dec. 2023 was €506 Mil. Technip Energies NV's Revenue for the six months ended in Dec. 2023 was €3,173 Mil. Therefore, Technip Energies NV's Gross Margin % for the quarter that ended in Dec. 2023 was 15.95%.

Warning Sign:

Technip Energies NV gross margin has been in long-term decline. The average rate of decline per year is -6.2%.

The historical rank and industry rank for Technip Energies NV's Gross Margin % or its related term are showing as below:

XPAR:TE' s Gross Margin % Range Over the Past 10 Years
Min: 13.78 Med: 15.38 Max: 21.68
Current: 15.38

During the past 7 years, the highest Gross Margin % of Technip Energies NV was 21.68%. The lowest was 13.78%. And the median was 15.38%.

XPAR:TE's Gross Margin % is ranked worse than
66.63% of 929 companies
in the Oil & Gas industry
Industry Median: 27.82 vs XPAR:TE: 15.38

Technip Energies NV had a gross margin of 15.95% for the quarter that ended in Dec. 2023 => No sustainable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Technip Energies NV was -6.20% per year.

Technip Energies NV Gross Margin % Historical Data

The historical data trend for Technip Energies NV's Gross Margin % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

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Technip Energies NV Gross Margin % Chart

Technip Energies NV Annual Data

Trend

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Gross Margin %

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21.68

17.64

14.18

14.08

15.38

Technip Energies NV Semi-Annual Data
	Dec17	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23
Gross Margin %	Get a 7-Day Free Trial							13.86	13.76	14.41	14.73	15.95

Competitive Comparison of Technip Energies NV's Gross Margin %

For the Oil & Gas Equipment & Services subindustry, Technip Energies NV's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Technip Energies NV's Gross Margin % Distribution in the Oil & Gas Industry

For the Oil & Gas industry and Energy sector, Technip Energies NV's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Technip Energies NV's Gross Margin % falls into.

Technip Energies NV Gross Margin % Calculation

Gross Margin is the percentage of Gross Profit out of sales or Revenue.

Technip Energies NV's Gross Margin for the fiscal year that ended in Dec. 2023 is calculated as

Gross Margin % (A: Dec. 2023 )	=	Gross Profit (A: Dec. 2023 )	/	Revenue (A: Dec. 2023 )
	=	923.2	/	6003.6
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(6003.6 - 5080.4)	/	6003.6
	=	15.38 %

Technip Energies NV's Gross Margin for the quarter that ended in Dec. 2023 is calculated as

Gross Margin % (Q: Dec. 2023 )	=	Gross Profit (Q: Dec. 2023 )	/	Revenue (Q: Dec. 2023 )
	=	506.2	/	3173.3
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(3173.3 - 2667.1)	/	3173.3
	=	15.95 %

A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.

Technip Energies NV (XPAR:TE) Gross Margin % Explanation

Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.

Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %

1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key

Technip Energies NV had a gross margin of 15.95% for the quarter that ended in Dec. 2023 => No sustainable competitive advantage

Be Aware

If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.

Technip Energies NV Gross Margin % Related Terms

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Technip Energies NV (XPAR:TE) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Energy » Oil & Gas » Technip Energies NV (XPAR:TE) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

THNPY:USA THNPF:USA TEp:UK 68F:Germany

Address

2126 boulevard de la Defense, CS 10266, Nanterre, Cedex, FRA, 92741

Website

https://www.technipenergies.com

Technip Energies NV is an engineering and technology company specialized in providing projects, technologies, products and services on energy infrastructure both onshore and offshore. Substantial revenue is derived from the Project Delivery segment.