Forum Energy Technologies (FET) Q4 2025 earnings summary

Executive summary

• Achieved strong operational and financial performance in 2025, overcoming lower global drilling activity, tariffs, and geopolitical uncertainty.

• Fourth quarter 2025 revenue reached $202 million, with net income of $2 million and adjusted net income of $5 million, reflecting strong operational execution and cost management.

• Full year 2025 revenue was $791 million, with adjusted EBITDA of $86 million and free cash flow of $80 million, supported by improved working capital efficiency and asset monetization.

• Orders for 2025 totaled $891 million, resulting in a book-to-bill ratio of 113% and a year-end backlog of $312 million, the highest in 11 years and up 46% year-over-year.

• Gained market share through customer engagement, product innovation, and geographic expansion, with revenue per global rig up 20% since 2022.

Financial highlights

• 2025 revenue per global rig increased despite a sizable decline in global rig count, reaching $435, up from $419 in 2024.

• Adjusted EBITDA for Q4 2025 was $23 million, at the top end of guidance and up nearly 13% from the prior six months.

• Delivered $80 million of Free Cash Flow in 2025, at the top end of guidance, with a Free Cash Flow conversion for 2025 of 93%.

• Reduced net debt by 28% and repurchased approximately 11% of shares outstanding, returning $35 million to shareholders.

• Gross profit for 2025 was $219 million, with a gross margin of 27.7%.

Outlook and guidance

• 2026 revenue guidance is $800–$880 million, up 6% at the midpoint, with adjusted EBITDA projected at $90–$110 million, a 16% increase.

• Adjusted net income guidance for 2026: $18 million–$38 million; Free Cash Flow: $55 million–$75 million, with a 65% conversion rate.

• Q1 2026 revenue guidance: $190 million–$210 million; EBITDA: $21 million–$25 million; Adjusted net income: $5 million–$9 million.

• Management expects global market activity to remain flat in 2026, but anticipates revenue and EBITDA growth driven by backlog, cost reductions, and market share gains.