Forum Energy Technologies, Inc. (FET) Q3 2025 Earnings Call Transcript
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Oct 31 2025
0mins
Should l Buy FET?
Source: SeekingAlpha
Revenue $196 million, approaching the top end of guidance range. Offshore and international revenue grew, while U.S. revenue declined 10% due to a 5% drop in U.S. rig count and conservative customer behavior.
Backlog Increased by 21%, reaching its highest level since 2015. Driven by offshore and international awards.
Free Cash Flow (Year-to-Date) Up 21%, achieving the ninth consecutive quarter of positive free cash flow. Operations generated almost $200 million in cash over this period.
Net Leverage Reduced to 1.3x, achieved one quarter ahead of schedule. Net debt reduced by $12 million (nearly 10%) to $114 million.
Share Buybacks Repurchased 5% of shares outstanding in Q3, totaling 8% for the year through September. $15 million spent on buybacks in Q3.
EBITDA $23 million, up 13% quarter-over-quarter, exceeding guidance. Margins improved by 150 basis points to nearly 12% due to favorable product mix, cost reductions, and tariff mitigation.
Drilling and Completions Segment Revenue Flat for the quarter. Coiled line pipe sales increased 28%, subsea product line up 5%, but offset by lower sales for consumable items tied to softer market activity.
Artificial Lift and Downhole Segment Revenue Decreased 4%. Lower downhole casing hardware and processing equipment revenue, partially offset by increased sales of valve and sand control products.
Structural Cost Reductions Achieved close to $10 million in savings. Consolidated 4 manufacturing plants into 2, expected to contribute over $5 million in additional annualized cost savings by Q2 2026.
Free Cash Flow (Q3) $28 million, a 23% increase, driven by increased EBITDA, reductions in net working capital, and a sale-leaseback transaction.
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Analyst Views on FET
About FET
Forum Energy Technologies, Inc. is a global manufacturing company serving the oil, natural gas, industrial and renewable energy industries. Its segments include Drilling and Completions and Artificial Lift and Downhole. The Drilling and Completions segment designs, manufactures and supplies products and solutions to the drilling, subsea, coiled tubing, well stimulation and intervention markets, including applications in the oil and natural gas, renewable energy, defense and communications industries. The products and solutions include capital equipment and consumable products, wireline cable and pressure control equipment, and coiled tubing strings and pressure control equipment. The Artificial Lift and Downhole segment designs, manufactures and supplies products and solutions for the artificial lift, well construction, production and infrastructure markets. Its products include well construction casing and cementing equipment, customized downhole technology solutions, and others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
FORUM ENERGY TECHNOLOGIES INC: CANADIAN LETTER OF CREDIT SUBLIMIT STAYS AT $10 MILLION
- Credit Limit Status: The Canadian letter of credit for Forum Energy Technologies remains at $10 million.
- Financial Implications: This credit limit indicates the company's financial standing and potential for future investments or projects.
See More
FORUM ENERGY TECHNOLOGIES INC - MATURITY DATE POSTPONED TO FEBRUARY 4, 2031 - SEC FILING
- Maturity Date Extended: The maturity date for Forum Energy Technologies has been extended to February 4, 2031.
- SEC Filing: This extension has been documented in a filing with the Securities and Exchange Commission (SEC).
See More
Forum Energy Technologies Amends Credit Facility to Enhance Financial Flexibility
- Credit Facility Amendment: Forum Energy Technologies announced an amendment to its $250 million asset-based lending credit facility, extending maturity to February 2031, which enhances the company's financial flexibility to support strategic investments and long-term debt retirement.
- Increased Credit Limit: The amended agreement raises the total amount of letters of credit to $110 million, providing the company with greater funding support for future acquisition opportunities and organic investments, thereby further solidifying its market position.
- Optimized Interest Rate Structure: The borrowing interest rate structure has been modified to an excess availability-based pricing model, which is expected to lower the company's financial burden and improve profitability through reduced financing costs.
- Management Outlook: CFO Lyle Williams remarked that the amendment reflects strong support from the bank group and underscores the company's commitment to achieving its FET 2030 goals, which is anticipated to drive continued growth in the oil, gas, defense, and renewable energy sectors.
See More
Forum Energy Technologies Schedules Q4 2025 Earnings Call
- Earnings Call Announcement: Forum Energy Technologies will host its fourth quarter and full year 2025 earnings conference call on February 20, 2026, at 10:00 a.m. Central Time, issuing a press release beforehand to ensure timely information for investors.
- Webcast Availability: The call will be webcast through the Investor Relations link on FET's website, allowing global investors to participate in real-time and access the latest financial data.
- Replay Accessibility: A replay of the call will be available on the Investor Relations website after the call concludes, expected to be accessible around 5:00 p.m. Central Time, providing convenience for investors who could not attend live.
- Company Overview: FET is a global manufacturing company serving the oil, natural gas, defense, and renewable energy sectors, focused on delivering value-added solutions that enhance the safety, efficiency, and environmental impact of its customers' operations.
See More
Forum Energy Technologies Schedules Q4 2025 Earnings Call
- Earnings Call Announcement: Forum Energy Technologies (FET) has announced that it will host its Q4 and full year 2025 earnings conference call on February 20, 2026, at 10:00 a.m. Central Time, aimed at providing investors with insights into its financial performance and future outlook.
- Pre-Call Earnings Release: FET will issue its earnings report for Q4 and the full year 2025 prior to the conference call, ensuring that investors have access to essential financial information ahead of the meeting, thereby enhancing transparency and market confidence.
- Webcast Accessibility: The earnings call will be webcast through the Investor Relations link on FET's website, facilitating global investor participation and real-time information access, which strengthens the interaction between the company and its investors.
- Replay Availability: After the call concludes, FET will provide a replay of the conference on its Investor Relations website, expected to be available around 5:00 p.m. Central Time, ensuring that investors who could not attend live can still access key information.
See More
Mid-to-Low Cap Energy Stocks Face Weak EPS Revisions
- Pessimistic Earnings Outlook: Mid-to-low cap energy stocks like Advantage Energy and Forum Energy Technologies have received an 'F' grade for EPS revisions, indicating significant downward adjustments by analysts, reflecting a lack of market confidence in these companies.
- Wide Industry Distribution: These stocks span various subsectors including oil and gas exploration, equipment services, storage and transportation, and refining and marketing, suggesting that the entire energy sector is facing widespread challenges in the current economic environment, which may impact overall investor confidence.
- Consistent Analyst Ratings: All listed companies have been rated at the lowest level, demonstrating analysts' general concerns about their future profitability, which could lead to increased risk aversion among investors and negatively affect market performance.
- Potential Market Reaction: As the earnings season kicks off, investors may remain cautious regarding these stocks, especially against the backdrop of widespread EPS downgrades by analysts, potentially leading to further pressure on their stock prices.
See More
FORUM ENERGY TECHNOLOGIES INC: CANADIAN LETTER OF CREDIT SUBLIMIT STAYS AT $10 MILLION
- Credit Limit Status: The Canadian letter of credit for Forum Energy Technologies remains at $10 million.
- Financial Implications: This credit limit indicates the company's financial standing and potential for future investments or projects.
See More
FORUM ENERGY TECHNOLOGIES INC - MATURITY DATE POSTPONED TO FEBRUARY 4, 2031 - SEC FILING
- Maturity Date Extended: The maturity date for Forum Energy Technologies has been extended to February 4, 2031.
- SEC Filing: This extension has been documented in a filing with the Securities and Exchange Commission (SEC).
See More
Forum Energy Technologies Amends Credit Facility to Enhance Financial Flexibility
- Credit Facility Amendment: Forum Energy Technologies announced an amendment to its $250 million asset-based lending credit facility, extending maturity to February 2031, which enhances the company's financial flexibility to support strategic investments and long-term debt retirement.
- Increased Credit Limit: The amended agreement raises the total amount of letters of credit to $110 million, providing the company with greater funding support for future acquisition opportunities and organic investments, thereby further solidifying its market position.
- Optimized Interest Rate Structure: The borrowing interest rate structure has been modified to an excess availability-based pricing model, which is expected to lower the company's financial burden and improve profitability through reduced financing costs.
- Management Outlook: CFO Lyle Williams remarked that the amendment reflects strong support from the bank group and underscores the company's commitment to achieving its FET 2030 goals, which is anticipated to drive continued growth in the oil, gas, defense, and renewable energy sectors.
See More
Forum Energy Technologies Schedules Q4 2025 Earnings Call
- Earnings Call Announcement: Forum Energy Technologies will host its fourth quarter and full year 2025 earnings conference call on February 20, 2026, at 10:00 a.m. Central Time, issuing a press release beforehand to ensure timely information for investors.
- Webcast Availability: The call will be webcast through the Investor Relations link on FET's website, allowing global investors to participate in real-time and access the latest financial data.
- Replay Accessibility: A replay of the call will be available on the Investor Relations website after the call concludes, expected to be accessible around 5:00 p.m. Central Time, providing convenience for investors who could not attend live.
- Company Overview: FET is a global manufacturing company serving the oil, natural gas, defense, and renewable energy sectors, focused on delivering value-added solutions that enhance the safety, efficiency, and environmental impact of its customers' operations.
See More
Forum Energy Technologies Schedules Q4 2025 Earnings Call
- Earnings Call Announcement: Forum Energy Technologies (FET) has announced that it will host its Q4 and full year 2025 earnings conference call on February 20, 2026, at 10:00 a.m. Central Time, aimed at providing investors with insights into its financial performance and future outlook.
- Pre-Call Earnings Release: FET will issue its earnings report for Q4 and the full year 2025 prior to the conference call, ensuring that investors have access to essential financial information ahead of the meeting, thereby enhancing transparency and market confidence.
- Webcast Accessibility: The earnings call will be webcast through the Investor Relations link on FET's website, facilitating global investor participation and real-time information access, which strengthens the interaction between the company and its investors.
- Replay Availability: After the call concludes, FET will provide a replay of the conference on its Investor Relations website, expected to be available around 5:00 p.m. Central Time, ensuring that investors who could not attend live can still access key information.
See More
Mid-to-Low Cap Energy Stocks Face Weak EPS Revisions
- Pessimistic Earnings Outlook: Mid-to-low cap energy stocks like Advantage Energy and Forum Energy Technologies have received an 'F' grade for EPS revisions, indicating significant downward adjustments by analysts, reflecting a lack of market confidence in these companies.
- Wide Industry Distribution: These stocks span various subsectors including oil and gas exploration, equipment services, storage and transportation, and refining and marketing, suggesting that the entire energy sector is facing widespread challenges in the current economic environment, which may impact overall investor confidence.
- Consistent Analyst Ratings: All listed companies have been rated at the lowest level, demonstrating analysts' general concerns about their future profitability, which could lead to increased risk aversion among investors and negatively affect market performance.
- Potential Market Reaction: As the earnings season kicks off, investors may remain cautious regarding these stocks, especially against the backdrop of widespread EPS downgrades by analysts, potentially leading to further pressure on their stock prices.
See More
