Forum Energy Technologies (FET) Investor Summit Virtual Conference summary

Company Overview and Business Segments

• Operates globally with two main segments: Artificial Lift and Downhole, and Drilling and Completion, serving E&P operators and major oilfield service companies.

• Revenue is split evenly between U.S. and international markets; 75% of sales are activity-driven consumables.

• Capital equipment sales include upgrades and key components for drilling and frac fleets.

• Emphasized a global manufacturing presence with a focus on value-added solutions for energy production efficiency.

• Highlighted leadership in targeted markets, continuous innovation, and leveraging a global footprint to drive growth.

Financial Performance and Guidance

• Achieved 10% annual revenue growth and quadrupled adjusted EBITDA since 2020, with a 9% CAGR in revenue and 10% CAGR in adjusted cash flow from 2021 to 2025.

• 2026 guidance targets $840 million in revenue and $100 million in EBITDA, up 16% from 2025, with a guidance midpoint of $800–$880 million revenue and $90–$110 million EBITDA.

• Outperformed the Russell 2000 in revenue and cash flow growth over the past four years.

• EBITDA margin improved from 4% in 2021 to 11% in 2025.

• Stock price CAGR of 25% over five years, with 139% growth in the last year.

Capital Allocation and Shareholder Returns

• Free cash flow yield and valuation metrics are significantly better than the Russell 2000 average, with adjusted cash flow yield at 19% and enterprise value to EBITDA at 6.2x.

• Repurchased approximately 1.4 million shares at under $25 per share between 2024 and 2025, reducing shares outstanding by 10% in 2025.

• Reduced net debt by 69% since 2019, lowering net leverage ratio to 1.2x, with no maturities until 2029.

• Free cash flow before acquisitions reached $105 million in 2024 and $80 million in 2025.

• Plans to deploy free cash flow to share repurchases or acquisitions, focusing on strategic investments.