Forum Energy Technologies Reports Strong Fourth Quarter, Sets Strategic Path for 2025

Forum Energy Technologies (NYSE: FET) reported a complex fourth quarter with strategic financial maneuvers that could signal stability in a challenging energy market. The company's financial results revealed nuanced performance across its business segments, with strategic initiatives potentially offsetting near-term market uncertainties.

The Drilling and Completions segment experienced a sequential revenue decline of 10.1%, attributed to reduced U.S. completions activity. Despite this challenge, the segment maintained a book-to-bill ratio of 93.0%, indicating potential for future recovery through international market opportunities.

Conversely, the Artificial Lift and Downhole segment demonstrated resilience, with revenue increasing 6.8% sequentially. Total orders rose 14.0%, driven by strong demand for production equipment technologies, suggesting underlying market strength in specific energy technology subsectors.

A significant strategic move included a debt refinancing initiative and the launch of a $75.0 million share repurchase program. The company committed to allocating 50% of free cash flow to net debt reduction, with the remainder dedicated to strategic investments and share repurchases.

Free cash flow performance was particularly noteworthy, reaching $56.9 million in the fourth quarter and $105.0 million for the full year—the highest since 2015. This performance stems from successful Variperm acquisition integration and effective working capital management.

Looking forward, Forum Energy Technologies projected 2025 adjusted EBITDA between $85.0 million and $105.0 million. The company anticipates market share gains despite an expected 2% to 5% decline in global drilling and completion activity, signaling confidence in its strategic positioning.

The company's valuation analysis, utilizing discounted cash flow and enterprise value models, suggests a potential share value range between $25.37 and $31.04, with a midpoint of $29.00, indicating cautious optimism about future performance.