Forum Energy Technologies (FET) Sidoti March Small-Cap Virtual Conference summary

Company Overview and Market Positioning

• Operates globally with two main segments: artificial lift & downhole, and drilling & completions, serving both operators and oilfield service companies.

• Maintains a balanced geographic revenue split between the US and international markets, with about half of revenue generated outside the US.

• Major customers include leading E&P operators and oilfield service companies.

• 75% of revenue comes from activity-driven consumables, the rest from capital equipment.

• Emphasizes value-added solutions for energy production efficiency and a global manufacturing presence.

Financial Performance and Value Metrics

• Revenue has grown steadily since 2021, with 2026 guidance at $840 million, up 6% year-over-year; EBITDA guidance for 2026 is $100 million, up 16%.

• Achieved a 10% CAGR in revenue and 46% CAGR in adjusted cash flow (2021–2025), outpacing the Russell 2000.

• Five-year annualized stock price performance reached 139%, with a 25% CAGR, about 5x the Russell 2000.

• Adjusted cash flow yield at 19% and enterprise value to EBITDA at 6.2x, both favorable compared to Russell 2000 benchmarks.

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

Capital Allocation and Returns

• Reduced shares outstanding by 10% from 2024 to 2025 and cut net leverage ratio from 3.9x to 1.2x.

• Net debt to EBITDA reduced to 0.5x by 2025, reflecting substantial deleveraging.

• Net debt reduced by 69% since 2019.

• Over $100 million in liquidity, no debt maturities until 2029, and ongoing focus on share repurchases and acquisitions.

• Buyback program remains active with $30 million capacity for 2026; M&A landscape is healthy, targeting accretive deals.