Forum Energy Technologies (FET) Q4 2024 earnings summary

Executive summary

• Revenue increased 10% in 2024 to $816 million, with EBITDA up 49% to $100 million and free cash flow reaching $105 million, the highest since 2015.

• EBITDA margins expanded by over 300 basis points to 12%, and overall margins improved by 800 basis points over three years.

• The Variperm acquisition contributed significantly, outperforming expectations in EBITDA margins, free cash flow, and market share, especially in the ER market.

• A $100 million bond offering refinanced long-term debt, and a $75 million share repurchase program was announced, with $2 million repurchased in January 2025.

• Net loss for 2024 was $135 million, impacted by a $119 million non-cash intangible asset impairment and an $11 million tax valuation allowance release.

Financial highlights

• Full-year 2024 revenue grew 10% to $816 million, and adjusted EBITDA rose 49% to $100 million year-over-year.

• Free cash flow reached $105 million, exceeding guidance by $35 million, aided by a real estate sale lease-back and working capital reductions.

• Q4 2024 revenue was $201 million, EBITDA $22 million, and orders $190 million, all within guidance.

• Adjusted net loss for Q4 was $6 million; adjusted net loss for 2024 was $11 million.

• Two non-cash items in Q4: $119 million intangible asset impairment (coil tubing) and $11 million tax benefit from releasing valuation allowances.

Outlook and guidance

• 2025 is expected to be a transitional year, with global drilling and completion activity forecasted to decline 2–5%.

• North American rig and frac fleet counts are expected to soften, while international activity is expected to remain flat.

• 2025 adjusted EBITDA guidance is $85–$105 million; free cash flow guidance is $40–$60 million.

• 50% of free cash flow will go to net debt reduction, 50% to strategic investments and share repurchases.

• Q1 2025 revenue guidance: $185–$205 million; EBITDA: $20–$24 million.