Forum Energy Technologies, Inc.

What they do

FET operates through two segments: Drilling and Completions, and Artificial Lift and Downhole. The Drilling and Completions segment supplies products for drilling, subsea, coiled tubing, well stimulation, and intervention markets. The Artificial Lift and Downhole segment provides artificial lift equipment, well construction casing, downhole technology, engineered process systems, and industrial valves. In 2025, roughly 80% of revenue came from consumables and activity-based equipment, with the rest from capital products and small rental/services.

Revenue drivers

• Drilling and Completions — Largest segment, generated $139 million revenue in Q2 2026 (up 10% sequentially) on higher demand for coiled tubing, wireline cables, and capital equipment such as iron roughnecks and radiators; book-to-bill 104%.
• Artificial Lift and Downhole — Second segment, $87 million revenue in Q2 2026 (up 6% sequentially) driven by sand and flow control, artificial lift products, and casing equipment; book-to-bill 105%.
• Consumables and activity-based equipment — Primary revenue source (about 80% of revenue in 2025), tied to customer drilling and completion activity; includes high-pressure hoses, wireline cable, coiled tubing strings, and flow iron.
• Capital equipment — Balance of revenue, from drilling rig upgrades, subsea projects, pressure pumping equipment, and renewable energy capital projects.

Recent performance

In Q2 2026, revenue was $226 million, up 8% sequentially, with net income of $12 million and EPS of $1.05. Adjusted EBITDA was $32 million, up 39% sequentially, and adjusted net income was $14 million. The company reported orders of $236 million, a book-to-bill ratio of 104%. Full-year 2025 revenue was $791.5 million with a net loss of $9.7 million; 2024 revenue was $816.4 million with a net loss of $135.3 million. At March 31, 2026, cash was $37.5 million, long-term debt $152.3 million, and shareholders' equity $280.7 million.

Strategy

FET's stated 'Beat the Market' strategy focuses on gaining market share, expanding margins, and generating free cash flow. Management highlights cost management and plant consolidation to improve utilization and profitability. The company targets its 'FET 2030' vision, which includes growth through backlog and market share gains. In the first half of 2026, they repurchased $8 million of shares and reduced net leverage to 1.1 times.

Risks

• Oil and gas price volatility — Demand for FET products is directly tied to customer drilling and completion activity, which hinges on commodity prices; the company noted average Brent fell to ~$63/barrel in December 2025.
• Intense competition — Markets are highly competitive with some competitors having substantially greater resources, potentially limiting FET's ability to win business.
• Inventory and backlog risk — Uncertain commodity prices may lead to excess or obsolete inventory, and customers may cancel or delay orders, hurting margins and financial results.
• Supply chain and raw material costs — The business depends on key suppliers for raw materials and specialized equipment; inflationary pressures and tariff changes could increase operating expenses.

Outlook

For Q3 2026, FET guided revenue of $225–$245 million, adjusted EBITDA of $31–$37 million, and adjusted net income of $12–$18 million. For full-year 2026, the company raised guidance to revenue of $870–$910 million, adjusted EBITDA of $115–$125 million, and adjusted net income of $42–$52 million, citing first-half strength and market share gains. Management expects global energy demand to rise long-term, supporting the industry's outlook.