Forum Energy Technologies (FET) Q1 2026 earnings summary

Executive summary

• Q1 2026 revenue rose 8% year-over-year to $209 million, driven by higher ROV sales and increased demand for sand and flow control products.

• Net income surged 300% to $4.5 million, with EPS at $0.40 (basic), and adjusted EBITDA grew 14% to $23 million.

• Orders reached $221 million, with a book-to-bill ratio of 106% and backlog up 44% year-over-year.

• Structural cost-saving initiatives delivered $15 million in annualized savings, improving efficiency.

• Share repurchases totaled $5 million in Q1, with credit facility maturity extended to 2031 and improved terms.

Financial highlights

• Gross profit for Q1 2026 was $61 million, with operating income of $11 million and net income of $4.5 million.

• Adjusted EBITDA for Q1 was $23 million, with adjusted net income of $6 million.

• Free cash flow for Q1 was $1–$1.4 million, consistent with guidance and seasonally low due to annual payments.

• Net debt ended at $121 million, with a net leverage ratio of 1.4x and liquidity at $91 million.

• Cash and cash equivalents stood at $37.5 million as of March 31, 2026.

Outlook and guidance

• Q2 2026 revenue forecasted at $200–$225 million and adjusted EBITDA at $24–$30 million, up 6% and 32% year-over-year at midpoints.

• Full-year 2026 adjusted EBITDA guidance raised to $95–$110 million, midpoint up 20% over 2025; revenue guidance maintained at $800–$880 million.

• Free cash flow guidance reaffirmed at $55–$75 million, targeting 65% EBITDA conversion.

• Management expects available cash, operations, and credit facility to be adequate for at least the next 12 months.

• Guidance assumes a flat market, with potential upside if activity increases.