Download PDF

1. Company Snapshot

1.a. Company Description

Forum Energy Technologies, Inc.designs, manufactures, and distributes products serving the oil, natural gas, industrial, and renewable energy industries in the United States and internationally.It operates through three segments: Drilling & Downhole, Completions, and Production.


The Drilling & Downhole segment designs, manufactures, and supplies products, and provides related services to the drilling, well construction, artificial lift, and subsea energy construction markets, including applications in oil and natural gas, renewable energy, defense, and communications.This segment offers drilling technologies consisting of capital equipment and a line of products consumed in the drilling process; well construction casing and cementing equipment, and protection products for artificial lift equipment and cables; and subsea remotely operated vehicles and trenchers, submarine rescue vehicles, specialty components and tools, and complementary subsea technical services.The Completions segment offers hydraulic fracturing pumps, cooling systems, high-pressure flexible hoses, and flow iron for pressure pumping, hydraulic fracturing and flowback services markets; wireline cable and pressure control equipment for well completion and intervention service markets; and coiled tubing strings and coiled line pipe.


The Production segment designs, manufactures, and supplies products, and provides related equipment and services for production and infrastructure markets.This segment offers engineered process systems, production equipment, specialty separation equipment, and various industrial valves for oil and natural gas customers, power generation, renewable energy, and other general industrial applications.The company was formerly known as Forum Oilfield Technologies, Inc.


and changed its name to Forum Energy Technologies, Inc.in August 2010.Forum Energy Technologies, Inc.


was incorporated in 2005 and is headquartered in Houston, Texas.

Show Full description

1.b. Last Insights on FET

Forum Energy Technologies' recent performance was driven by strong Q2 2025 results, with revenue of $200 million and net income of $8 million. The company's adjusted net loss was $1 million, beating revenue estimates. Q2 orders jumped 46%, and the subsea backlog provides long-term revenue stability. The company raised its full-year 2025 cash flow guidance, indicating a positive outlook. Additionally, FET announced a secondary listing on NYSE Texas, expanding its presence. A large contract with a military client also contributed to the positive momentum.

1.c. Company Highlights

2. FET's Q3 2025 Earnings: A Strong Beat with Rising Guidance

FET reported a robust third quarter in 2025, with revenue reaching $196 million and EBITDA of $23 million, marking a 13% increase and surpassing the top end of their guidance. The company's free cash flow was $28 million, a 23% increase, and they raised their full-year guidance to $70-80 million. Earnings per share (EPS) came in at $0.27, significantly beating estimates of $0.19. The strong financial performance was driven by a 21% growth in backlog, the highest level since 2015, fueled by a book-to-bill ratio of 122%. The company's efforts to enhance shareholder value were evident in the repurchase of 5% of its shares outstanding and a reduction in net debt to $114 million, or 1.3x net leverage.

Publication Date: Nov -30

📋 Highlights
  • Q3 Revenue and EBITDA Growth: Revenue rose to $196 million, EBITDA hit $23 million (+13% YoY), exceeding guidance top end.
  • Free Cash Flow and Guidance Raise: Free cash flow surged 23% to $28 million; full-year revenue guidance raised to $770–790 million.
  • Backlog Expansion: Backlog grew 21% to highest since 2015, with 122% book-to-bill ratio from strong bookings.
  • Share Repurchases and Debt Reduction: Repurchased 5% of shares; net debt reduced to $114 million (1.3x leverage).
  • Market Expansion Goals: Aiming to double growth market share to 16%, adding $250 million in revenue if markets remain flat.

Operational Highlights

FET's "Beat the Market" strategy, centered on new product development and targeted commercial efforts, continues to drive market share gains and long-term growth. The company expects its addressable markets to expand by 50% over the next five years, driven by increasing energy demand and the need for more efficient operations. Neal Lux highlighted that FET aims to double its share in growth markets from 8% to 16%, potentially increasing revenue by $250 million in a flat market. The company's focus on new products, particularly in artificial lift, subsea, and power, is expected to drive growth, with products like coiled line pipe and ROV systems gaining traction.

Segment Performance and Outlook

Lyle Williams provided insights into segment results, noting that Drilling and Completions segment revenue was flat, while Artificial Lift and Downhole segment revenue decreased 4%. The company is working to mitigate tariff costs and is on track to achieve its $10 million structural cost reduction goal. FET forecasts a gradual decline in activity through the fourth quarter but expects to maintain relatively steady results due to their elevated backlog, market share gains, and cost savings. Guidance for Q4 revenue is $180-200 million and EBITDA of $19-23 million, with full-year revenue expected to be $770-790 million and EBITDA of $83-87 million.

Valuation and Growth Prospects

FET's current valuation metrics indicate a 'P/E Ratio' of -3.3, 'P/B Ratio' of 1.28, and 'P/S Ratio' of 0.48. The 'EV/EBITDA' ratio stands at -7.5, and 'Free Cash Flow Yield' is 21.25%. Analysts estimate next year's revenue growth at 0.5%, indicating a relatively stable outlook. The company's ability to grow revenue without additional capital investment, as highlighted by Neal Lux regarding the Dayton pipe facility, and its focus on efficiency-enhancing technologies position it well for future growth.

Share Repurchases and Capital Allocation

David Williams mentioned that FET has a capacity of $15 million for share repurchases in the fourth quarter and $40 million for 2026, indicating a continued commitment to returning value to shareholders. The company's strong cash flow generation and reduced net debt provide flexibility for future capital allocation decisions.

3. NewsRoom

Card image cap

The Future Of Forum Energy Technologies Looks Much Brighter Than Its Past

Dec -04

Source: seekingalpha.com

Card image cap

Forum Energy Technologies to Present at the 17th Annual Southwest IDEAS Investor Conference

Nov -17

Source: businesswire.com

Card image cap

Forum Energy Technologies, Inc. (FET) Q3 2025 Earnings Call Transcript

Oct -31

Source: seekingalpha.com

Card image cap

Forum Energy Technologies Announces Third Quarter 2025 Results; Raises Full Year 2025 Cash Flow Guidance

Oct -31

Source: businesswire.com

Card image cap

Forum Energy Technologies Announces Timing of Third Quarter 2025 Earnings Conference Call

Oct -06

Source: businesswire.com

Card image cap

Interactive Strength Inc. (Nasdaq:TRNR) Updates FAQ's About Increased Guidance to $80M Pro Forma Revenue, Sportstech and TRNR's $50M Digital Asset Treasury

Sep -11

Source: accessnewswire.com

Card image cap

Crypto Treasury Companies: The Next Big Investment or a Meme-Stock Trap?

Sep -10

Source: https://247wallst.com

Card image cap

Forum Energy: Asset Light Model That Benefits From Interest Rate Decreases

Aug -27

Source: seekingalpha.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.76%)

6. Segments

Drilling & Downhole

Expected Growth: 4.7%

Forum Energy Technologies' Drilling & Downhole segment growth of 4.7% is driven by increasing demand for drilling and completion services, rising oil prices, and growing adoption of advanced drilling technologies. Additionally, the company's strategic acquisitions and investments in research and development have enhanced its product offerings, further contributing to the segment's growth.

Completions

Expected Growth: 4.83%

Forum Energy Technologies' 4.83% growth in Completions is driven by increasing demand for oilfield equipment and services, particularly in the US shale market. Rising oil prices, improved drilling efficiencies, and growing operator capital expenditures also contribute to this growth. Additionally, Forum's diversified product portfolio and strategic acquisitions have enhanced its market position, further supporting segment expansion.

Production

Expected Growth: 4.78%

Forum Energy Technologies' 4.78% growth is driven by increasing demand for oil and gas equipment, expansion into new markets, and strategic acquisitions. The company's diversified product portfolio, including drilling, completion, and production equipment, has enabled it to capitalize on the rising need for energy infrastructure. Additionally, Forum's focus on innovation and cost reduction has improved operational efficiency, contributing to its growth momentum.

Eliminations

Expected Growth: 4.83%

Forum Energy Technologies, Inc.'s 4.83% growth is driven by increasing demand for drilling and production equipment, expansion in international markets, and strategic acquisitions. Additionally, the company's focus on innovation and technology advancements has improved operational efficiency, leading to higher revenue and profitability.

7. Detailed Products

Drilling Technologies

Forum Energy Technologies provides a range of drilling technologies including drilling jars, stabilizers, and reamers for the oil and gas industry.

Downhole Technologies

Forum Energy Technologies offers downhole technologies such as logging and perforating tools, and drill pipe and tubing for the oil and gas industry.

Completions and Production Technologies

Forum Energy Technologies provides completions and production technologies including sand control systems, inflow control devices, and production optimization systems.

Subsea Technologies

Forum Energy Technologies offers subsea technologies including subsea trees, manifolds, and flowline connection systems for the oil and gas industry.

Well Intervention Technologies

Forum Energy Technologies provides well intervention technologies including coiled tubing, wireline, and hydraulic workover systems.

8. Forum Energy Technologies, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Forum Energy Technologies, Inc. operates in the oil and gas industry, which has limited substitutes. However, the increasing focus on renewable energy sources poses a moderate threat of substitutes.

Bargaining Power Of Customers

Forum Energy Technologies, Inc. has a diverse customer base, which reduces the bargaining power of individual customers. Additionally, the company's products and services are critical to its customers' operations, making it difficult for customers to negotiate prices.

Bargaining Power Of Suppliers

Forum Energy Technologies, Inc. relies on a few key suppliers for critical components, which gives them some bargaining power. However, the company's size and scale of operations mitigate this risk to some extent.

Threat Of New Entrants

The oil and gas industry has high barriers to entry, including significant capital requirements and regulatory hurdles. This makes it difficult for new entrants to compete with established players like Forum Energy Technologies, Inc.

Intensity Of Rivalry

The oil and gas industry is highly competitive, with many established players competing for market share. Forum Energy Technologies, Inc. faces intense competition from companies like Schlumberger, Halliburton, and Baker Hughes.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 25.10%
Debt Cost 3.95%
Equity Weight 74.90%
Equity Cost 16.85%
WACC 13.61%
Leverage 33.51%

11. Quality Control: Forum Energy Technologies, Inc. passed 2 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Forum Energy Technologies

A-Score: 4.9/10

Value: 9.0

Growth: 3.1

Quality: 4.2

Yield: 0.0

Momentum: 10.0

Volatility: 3.3

1-Year Total Return ->

View Full Report
Stock-Card
Dril-Quip

A-Score: 4.7/10

Value: 6.8

Growth: 6.3

Quality: 7.9

Yield: 0.0

Momentum: 5.0

Volatility: 2.3

1-Year Total Return ->

View Full Report
Stock-Card
TETRA Technologies

A-Score: 4.6/10

Value: 4.5

Growth: 5.2

Quality: 6.1

Yield: 0.0

Momentum: 9.5

Volatility: 2.3

1-Year Total Return ->

View Full Report
Stock-Card
Oil States International

A-Score: 4.2/10

Value: 6.3

Growth: 3.9

Quality: 4.6

Yield: 0.0

Momentum: 7.5

Volatility: 2.7

1-Year Total Return ->

View Full Report
Stock-Card
KLX Energy Services Holdings

A-Score: 3.1/10

Value: 9.8

Growth: 4.2

Quality: 3.7

Yield: 0.0

Momentum: 0.0

Volatility: 1.0

1-Year Total Return ->

View Full Report
Stock-Card
ProFrac

A-Score: 2.8/10

Value: 8.7

Growth: 4.0

Quality: 2.0

Yield: 0.0

Momentum: 1.0

Volatility: 1.0

1-Year Total Return ->

View Full Report

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

35.24$

Current Price

35.24$

Potential

-0.00%

Expected Cash-Flows