How Can McDermott Company Grow Through Products and Customers?

How can McDermott International, Ltd. win more offshore and low – carbon projects with new products and customers?

McDermott International, Ltd. can scale by selling modular, low – carbon EPCI solutions into expanding offshore wind and blue – hydrogen markets; 2025 tender volumes and 2026 EPC tech mandates boost deal conversion and margin expansion.

Focus on modular product lines and digital delivery to reduce capex risk for clients; tie sales to McDermott Business Model Canvas and prioritize markets with near – term 2025 project backlogs.

The next customer and product expansion for McDermott International, Ltd. will likely come from Middle East national oil companies and the offshore carbon capture and storage (CCS) market, driven by major LTAs with Saudi Aramco and QatarEnergy and rising demand for low-carbon subsea infrastructure.

Middle East LTAs and CCS: Core Growth Opportunity

McDermott growth strategy should prioritize delivery under Long-Term Agreements with Saudi Aramco and QatarEnergy, which remain anchor customers and represent predictable revenue. Internal bids show low-carbon projects now at 25 percent of the active pipeline, making CCS and hydrogen infrastructure the most attractive near-term expansion area.

Geographic and Segment Expansion Potential

Expand SURF (subsea, umbilicals, risers, flowlines) capabilities into deepwater Brazil and Guyana and scale offshore wind converter-station offerings in the North Sea. Targeting national oil companies in the Middle East and Petrobras/JD-Soup partners in Brazil fits a clear market expansion plan and customer acquisition play.

Product and Service Upside: Low-Carbon and SURF

Product expansion can center on CCS modules, hydrogen/ammonia handling systems, and bespoke SURF packages for deepwater projects-higher-margin scopes that complement existing EPC capabilities. Cross selling and upselling strategies should bundle maintenance, digital monitoring, and long-term service agreements to boost customer lifetime value.

Most Credible Growth Driver in 2025-2026

The most realistic growth driver is execution under LTAs and awarded North Field Expansion work, delivering steady backlog conversion and enabling scale into CCS and offshore wind conversion stations. Prioritizing product development strategy and B2B sales tactics to win these large contracts will increase market share and reduce revenue cyclicality.

Relevant actions: focus R&D on CCS and hydrogen modules, deploy targeted customer segmentation analysis for Middle East NOCs, and implement pricing strategy and customer retention strategies tied to long-term service contracts; see the Brand Story of McDermott Company for background.

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McDermott International, Ltd. is scaling modular fabrication and a digital execution suite to unlock demand, using strategic yards and a deployed digital twin to shave timelines and lower lifecycle costs.

Expansion priorities: modular offshore and regional yards

Focus on Batam, Indonesia, and Altamira, Mexico, to standardize modular designs for offshore substations and FPSO topsides, targeting faster project delivery and broader geographic reach.

Product or service innovation: standardized modular packages

Offering pre – engineered modular topside and substation packages that cut offshore man – hours and reduce field install time by about 20%, improving operators' total cost of ownership.

Technology or capability build-out: Gemini XD digital twin

Deploying the Gemini XD platform across major projects to visualize design-to – decommission lifecycles, enabling customers to optimize operations and reduce operating expense through predictive insights.

Partnerships or acquisitions: strategic supply and yard alliances

Leverage local supply chain agreements and joint – venture yard arrangements in Indonesia and Mexico to accelerate modular output and shorten lead times for global customers.

Investment and execution: capital allocation to modular capacity

Reallocating capital toward yard enhancements and digital rollout; standardized modules drive higher margin repeatable projects and improve win rates for cost – sensitive operators.

Most important growth bet: modular + digital package

Combining standardized modular fabrication with Gemini XD is the key bet to convert McDermott International, Ltd. service work into high – value, tech – enabled product offerings that increase customer acquisition and retention.

McDermott growth strategy centers on product expansion and customer acquisition by converting engineering and execution into repeatable, sellable modules and a digital lifecycle platform; see further detail in Customer Acquisition of McDermott Company.

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The biggest threat to McDermott International, Ltd.'s product-market fit is execution volatility on large fixed-price EPCI contracts combined with softer demand for New Energies if carbon policies or CCS subsidies stall; this can rapidly erode margins and customer trust.

Slowing demand for energy-transition projects

Slower adoption of carbon pricing or delayed CCS incentives could cut near-term addressable demand for subsea electrification and New Energies, reducing order intake and utilization of specialized assets tied to McDermott growth strategy and McDermott product expansion.

Competition and pricing pressure from regional fabricators

Regional Asian fabricators and aggressive European peers are driving down bid prices on large projects, squeezing margins on fixed-price work and challenging McDermott customer acquisition efforts and pricing strategy to grow revenue and market share.

Execution risk on multi-billion-dollar contracts

Project delays, scope creep, or supplier cost inflation-notably specialty steel and high-end engineering labor-can turn profitable backlog into loss-making work; capital allocation to R&D or product development strategy may be starved if margins compress.

Main risk: fixed-price exposure plus policy slippage

The clearest threat in 2025/2026 is simultaneous pressure from fixed-price contract exposure and delayed government action on carbon/CCS-this combination can lower utilization, cut EBITDA margins, and hamper McDermott customer retention strategies and market expansion plan.

See Leadership and Ownership context for strategic implications: Leadership and Ownership of McDermott Company

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McDermott International, Ltd.'s customer-led growth story looks strong: a diversified backlog above $18 billion in H1 2026 gives multi-year revenue visibility, and alignment with national oil companies plus energy-transition technical work supports durable demand.

Customer-Led Growth: Convincing and Resilient

McDermott growth strategy is anchored by a large, diversified backlog and targeted product expansion into modular and low – carbon solutions, making the customer-led case convincing today.

• Backlog and revenue visibility: backlog > $18 billion in H1 2026, supporting multi-year revenue streams tied to offshore and energy-transition projects.
• Strategic build-out: focused McDermott product expansion via modularization, fabrication capacity alignment for national oil companies, and digital delivery to improve margins and throughput.
• Main downside risk: execution risk on large EPCI (engineering, procurement, construction and installation) projects, with schedule slippage or cost overruns that could compress margins despite digital mitigation.
• Overall judgment for 2025/2026: growth outlook is strong provided the company maintains project selectivity, operational excellence, and disciplined capital allocation to support customer acquisition and retention strategies.

Key near-term traction: select wins in offshore topsides and subsea scopes, rising tender activity in 2025-2026, and an emphasis on product development strategy for low – carbon solutions that enable cross selling and upselling strategies for customers.

Financial and market signals: higher franchise-level backlog concentration with weighted-average contract duration extending multiple years, improving revenue visibility that supports a disciplined market expansion plan and targeted customer segmentation analysis for large national oil company clients.

Operational levers: convert fabrication throughput into repeatable product lines, accelerate McDermott product innovation roadmap and R&D investment in modular and electrification systems, and deploy digital marketing strategies and B2B sales tactics to win large contracts.

Risks and mitigants: if onboarding and project execution timelines exceed expectations, churn and margin pressure can follow; maintain stricter project selectivity, enhance customer retention program ideas for McDermott service businesses, and use pricing strategy to protect margins on renewals.

For client-facing evidence and customer choice drivers, see the customer perspective analysis in Why Customers Choose McDermott Company.

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