Forum Energy Technologies Reports Q1 2025 Performance Amid Market Challenges
TL;DR
FET's Drilling and Completions segment saw a 4.1% sequential revenue increase in 1Q25, leading to a surge in orders and improved margins.
FET's revenue, adj EBITDA, and adj net income for 1Q25 came in slightly below expectations, with a focus on cost reduction and operational optimization.
FET's strategic focus on higher-technology equipment and consumables positions them for international growth, enhancing long-term value and capital management.
Stonegate Capital Partners updates on FET's performance, highlighting revenue growth in the Drilling and Completions segment and ongoing positive cash flow generation.
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Forum Energy Technologies (NYSE: FET) reported first quarter 2025 financial results demonstrating strategic resilience in a volatile energy equipment market. The company's performance highlights both opportunities and challenges across its operational segments.
The Drilling and Completions segment showed notable strength, experiencing a 4.1% sequential revenue increase to $115.6 million. Key drivers included rebounding demand for completions equipment and increased subsea project revenues. The segment's order book surged 28% to $132.1 million, indicating potential future growth and a book-to-bill ratio of 1.14x.
Conversely, the Artificial Lift and Downhole segment encountered significant headwinds, with revenues declining 13.5% sequentially to $77.8 million. This decrease stemmed from delayed international project shipments and reduced demand for valve products, particularly impacted by U.S. tariff uncertainties.
Despite these challenges, Forum Energy Technologies maintained financial discipline, generating $7.2 million in free cash flow before acquisitions—marking its seventh consecutive quarter of positive results. Management remains committed to strategic initiatives focusing on cost reduction, product innovation, and operational optimization.
The company's financial guidance reflects cautious optimism, with expected second quarter adjusted EBITDA ranging between $18.0 million and $22.0 million. Stonegate Capital Partners' valuation analysis suggests a potential share price range between $26.17 and $31.00, reflecting the company's strategic positioning in a complex energy equipment marketplace.
Curated from Reportable
