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Forum Energy (FET)
NYSE:FET
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Forum Energy Tech
(NYSE:FET)
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Rating:68Neutral
Price Target:
$63.00
▲(106.69% Upside)
Action:ReiteratedDate:02/22/26
The score is supported by improved financial health and cash generation, and a strongly positive earnings call with upbeat 2026 guidance and record backlog. Technicals show a strong uptrend but are overbought, while valuation is a meaningful constraint due to the negative P/E and no dividend yield provided.
Positive Factors
Improved leverage & liquidity
Forum materially reduced leverage in 2025 (debt-to-equity ~0.47) and lowered total debt, strengthening its capital structure. That improved balance sheet and extended credit facility enhance resilience through oil-cycle downturns, support opportunistic buybacks, M&A or capex, and reduce refinancing risk.
Strong free cash flow generation
A return to robust free cash flow ($80M in 2025) and guidance to convert ~65% of EBITDA into FCF indicate enduring cash-generation improvement. This funds debt reduction, disciplined buybacks, and strategic investments, increasing financial flexibility and lowering dependence on external financing over the medium term.
Record backlog and product innovation
A record backlog (up 46% y/y) and consistent product commercialization (10 new products) deliver multi-quarter revenue visibility and differentiated content. Higher revenue-per-rig and targeted subsea wins suggest durable market-share gains and sales pipeline quality that support more stable future revenue amid cyclical demand.
Negative Factors
Profitability volatility
Despite operating improvements, net income stayed slightly negative in 2025 and the company has shown large earnings swings historically. This cyclical profitability makes sustained EPS improvement uncertain and can constrain reinvestment, dividend initiation, or consistent credit metric improvements during downturns.
Tariffs and industry headwinds
Ongoing tariffs (Section 232/301) and a soft drilling backdrop increase input costs and constrain demand, pressuring margins and order timing. These regulatory and structural headwinds can persist, limiting margin expansion and making revenue growth and cost pass-through more challenging over multiple quarters.
Reliance on one-time cash sources
A meaningful portion of 2025 cash flow came from working-capital releases and real-estate sale-leasebacks. Such nonrecurring sources reduce the visibility of sustainable FCF; if working-capital tailwinds reverse or one-offs are unavailable, funding for buybacks, debt paydown or capex could be strained, raising execution risk.
Forum Energy Tech (FET) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$592.56M
Dividend YieldN/A
Average Volume (3M)236.15K
Price to Earnings (P/E)―
Beta (1Y)1.05
Revenue Growth-1.29%
EPS Growth-123.25%
CountryUS
Employees1,800
SectorEnergy
Sector Strength52
IndustryOil & Gas Equipment & Services
Share Statistics
EPS (TTM)0.41
Shares Outstanding11,377,958
10 Day Avg. Volume275,775
30 Day Avg. Volume236,152
Financial Highlights & Ratios
PEG Ratio0.49
Price to Book (P/B)1.51
Price to Sales (P/S)0.55
P/FCF Ratio6.82
Enterprise Value/Market Cap1.11
Enterprise Value/Revenue0.83
Enterprise Value/Gross Profit2.99
Enterprise Value/Ebitda12.39
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)1.65
Revenue Forecast (FY)$802.90M
Forum Energy Tech Business Overview & Revenue Model
Company DescriptionForum Energy Technologies, Inc. designs, manufactures, and distributes products serving the oil, natural gas, industrial, and renewable energy industries in the United States and internationally. It operates through three segments: Drilling & Downhole, Completions, and Production. The Drilling & Downhole segment designs, manufactures, and supplies products, and provides related services to the drilling, well construction, artificial lift, and subsea energy construction markets, including applications in oil and natural gas, renewable energy, defense, and communications. This segment offers drilling technologies consisting of capital equipment and a line of products consumed in the drilling process; well construction casing and cementing equipment, and protection products for artificial lift equipment and cables; and subsea remotely operated vehicles and trenchers, submarine rescue vehicles, specialty components and tools, and complementary subsea technical services. The Completions segment offers hydraulic fracturing pumps, cooling systems, high-pressure flexible hoses, and flow iron for pressure pumping, hydraulic fracturing and flowback services markets; wireline cable and pressure control equipment for well completion and intervention service markets; and coiled tubing strings and coiled line pipe. The Production segment designs, manufactures, and supplies products, and provides related equipment and services for production and infrastructure markets. This segment offers engineered process systems, production equipment, specialty separation equipment, and various industrial valves for oil and natural gas customers, power generation, renewable energy, and other general industrial applications. The company was formerly known as Forum Oilfield Technologies, Inc. and changed its name to Forum Energy Technologies, Inc. in August 2010. Forum Energy Technologies, Inc. was incorporated in 2005 and is headquartered in Houston, Texas.
How the Company Makes MoneyForum Energy Technologies generates revenue through the sale of its specialized equipment and technology solutions to energy companies globally. Key revenue streams include the sale of subsea systems, drilling equipment, and various production technologies, which are often complemented by aftermarket services such as maintenance and support. The company also benefits from long-term contracts and partnerships with major oil and gas operators, providing a stable source of recurring income. Additionally, FET leverages its expertise in engineering and technology to offer consulting services, further diversifying its revenue portfolio. Market demand for energy, particularly in offshore drilling and production, significantly influences its earnings, making the company sensitive to fluctuations in oil prices and energy sector investments.
Forum Energy Tech Earnings Call Summary
Earnings Call Date:Feb 19, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 30, 2026
Earnings Call Sentiment Positive
The call presents a strongly positive operational and financial performance: revenue beats, sizable backlog growth (highest in 11 years, +46% year-to-date), strong free cash flow ($80M in 2025), effective cost saves (~$15M annualized) and meaningful share repurchases (~11% of shares). Management provided constructive 2026 guidance with modest revenue and notable EBITDA growth targets, alongside a fortified balance sheet and extended credit facility. Headwinds exist — tariffs remain, some product-mix and U.S. demand softness, tax noise and reliance on working capital/sale-leasebacks for cash — but these appear manageable relative to the company’s momentum, backlog, and margin/cost actions. Overall, highlights substantially outweigh lowlights.Q4-2025 Updates
Positive Updates
Revenue Beat and Sequential Growth
Fourth quarter revenue of $202,000,000 exceeded the top end of guidance and increased 3% sequentially, outpacing a flat global rig count.
Record Backlog and Book-to-Bill Strength
Full-year book-to-bill of 113%; Subsea product line posted nearly 190% book-to-bill. Company entered 2026 with its highest year-end backlog in 11 years, up 46% since the start of 2025.
Strong Free Cash Flow and Balance Sheet Improvement
Generated $80,000,000 of free cash flow in 2025 (top end of guidance), reduced net debt by 28% to $107,000,000, ended year with net leverage of 1.2x and liquidity of $108,000,000 (including $73,000,000 available on revolver).
Disciplined Capital Returns
Returned $35,000,000 to shareholders via repurchases (~1,400,000 shares, ~11% of shares outstanding) and repurchased shares at an average price under $25 (about half of current share price at time of call).
Operational Cost Savings
Consolidated four manufacturing plants into two, delivering approximately $15,000,000 of ongoing annualized savings and contributing to margin and cost discipline.
Product Innovation and Commercialization
Commercialized 10 new products in 2025 (examples: Secura Series stage collars and SecuraSlim, DuraCoil 95, DuraLine manifold). Revenue per global rig has grown 20% since 2022 and increased again in 2025 despite a declining rig count.
Segment and International Strength
International and offshore revenue strength: international revenue increased ~78% (call commentary), Subsea revenue grew 25% in Q4 (ROV projects and rescue submarine order recognition). Coiled tubing revenue up 13%; drilling product line revenue up 11%.
Clear 2026 Financial Guidance
Full-year 2026 guidance: Revenue target around $808,880,000 (implying ~6% growth), EBITDA guidance $90,000,000–$110,000,000, adjusted net income $18,000,000–$38,000,000, and expected free cash flow of $55,000,000–$75,000,000 (converting ~65% of EBITDA).
Q1 2026 Guidance and Momentum
Q1 2026 guidance: revenue $190,000,000–$210,000,000 and EBITDA $21,000,000–$25,000,000 (midpoint EBITDA ~15% higher YoY despite a projected 5% decline in rig count), with expected positive free cash flow.
Financing Flexibility
Extended credit facility maturity to February 2031 with improved pricing and increased letters-of-credit capacity; total commitments and facility tenor provide flexibility for debt retirement, organic growth, and acquisitions.
Negative Updates
Industry Headwinds and Tariffs
Company continues to face a challenging backdrop of lower global drilling activity, tariffs and geopolitical uncertainty. Supreme Court decision struck down IEPA tariffs but Section 232 and Section 301 tariffs remain in place and continue to affect steel costs and supply.
Tax and One-Time Expense Items
Fourth quarter included a $3,000,000 foreign tax settlement (related to 2017–2020) that increased income tax expense, largely due to a noncash reduction in deferred tax assets; tax complexity remains a notable item as profitability grows outside the U.S.
Product Mix and Margin Pressure in Places
Q4 adjusted EBITDA ($23,000,000) was at the top of guidance but faced headwinds from less favorable product mix, modest increases in healthcare and professional fees; Drilling & Completion segment EBITDA was essentially flat due to unfavorable mix, and Subsea margins are pressured by pass-through items.
U.S. Revenue Softness and Segment Weakness
U.S. revenue declined 2% in Q4 due to project timing and softer demand for valves and artificial lift products; Artificial Lift and Downhole segment revenue was $75,000,000, down 4% sequentially driven by lower shipments in Production Equipment.
Bookings Timing Dynamics
Fourth quarter book-to-bill was 93% (below 100%), primarily reflecting order timing in the Drilling & Completion segment after two exceptionally strong quarters — indicating some near-term timing variability in order flow.
Reliance on Working Capital and One-Time Cash Sources
2025 cash generation included nearly $34,000,000 from working capital efficiencies and $15,000,000 net proceeds from two real estate sale-leasebacks; reliance on working capital releases and one-time sale-leaseback proceeds could make sustaining similar cash conversion through growth more challenging.
Rising M&A Valuation Expectations
Management noted increased seller expectations and higher multiples in the market as public comps have risen, which could make accretive M&A more expensive and reduce optionality on buyouts.
Seasonality and Near-Term Headwinds
Q1 is seasonally lower due to annual incentive compensation and property tax payments; management expects buybacks to be more back-end loaded in 2026 as a result.
Company Guidance
Management guided full‑year 2026 revenue of about $808.88 million (roughly +6% YoY) with adjusted EBITDA of $90–$110 million (≈+16% YoY) and adjusted net income of $18–$38 million, and said it expects to convert ~65% of EBITDA into free cash flow (implying $55–$75 million FCF) assuming $35 million of interest and cash taxes, $10 million of CapEx and a $10 million net working‑capital reduction; Q1 2026 guidance is revenue $190–$210 million, adjusted EBITDA $21–$25 million (midpoint ~+15% YoY despite a projected 5% decline in global rig count), adjusted net income $5–$9 million, and positive free cash flow (acknowledging seasonal incentive and property tax timing).Forum Energy Tech Financial Statement Overview
Summary
Turnaround is underway with materially improved leverage (debt-to-equity ~0.47 in 2025) and strong recent operating/free cash flow in 2024–2025. However, net income is still slightly negative in 2025, revenue dipped versus 2024, and multi-year profitability/cash-flow volatility remains a key cyclical risk.Income Statement
Revenue has grown for three straight years (2023–2025), but 2025 revenue dipped versus 2024. Profitability has improved meaningfully from the deep losses in 2024 to positive operating profit in 2025, supported by a still-solid gross margin. However, net income remains slightly negative in 2025, and results have been volatile over the cycle (large losses in 2020–2021 and 2024), which keeps the score mid-range.52
Neutral
Balance Sheet
Leverage has improved materially, with debt-to-equity falling from roughly 0.85–0.99 (2022–2024) to ~0.47 in 2025, alongside a lower total debt balance. Equity remains sizable relative to assets, suggesting a better cushion than many peers in a cyclical industry. The main weakness is that recent years still show poor returns to shareholders due to net losses, even as the capital structure looks healthier.67
Positive
Cash Flow
Cash generation is a clear strength: operating cash flow and free cash flow are strongly positive in 2024 and 2025, a sharp improvement from negative cash flow in 2021–2022 and very weak conversion in 2023. That said, free cash flow declined in 2025 versus 2024, and cash flow has been uneven historically, which introduces confidence risk despite the current momentum.72
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 791.47M | 816.42M | 738.86M | 699.91M | 541.10M |
| Gross Profit | 219.04M | 255.03M | 204.15M | 188.53M | 123.30M |
| EBITDA | 52.89M | -43.22M | 45.21M | 78.85M | -7.82M |
| Net Income | -9.66M | -135.33M | -18.88M | 3.71M | -82.70M |
Balance Sheet | |||||
| Total Assets | 752.46M | 815.95M | 821.06M | 834.76M | 791.34M |
| Cash, Cash Equivalents and Short-Term Investments | 34.66M | 44.66M | 46.16M | 51.03M | 46.86M |
| Total Debt | 135.93M | 272.59M | 201.40M | 304.54M | 267.98M |
| Total Liabilities | 461.31M | 496.05M | 408.43M | 527.72M | 462.21M |
| Stockholders Equity | 291.14M | 319.90M | 412.63M | 307.04M | 329.13M |
Cash Flow | |||||
| Free Cash Flow | 64.39M | 84.05M | 239.00K | -24.55M | -18.20M |
| Operating Cash Flow | 70.40M | 92.19M | 8.18M | -17.05M | -15.80M |
| Investing Cash Flow | 9.57M | -137.53M | -6.57M | 27.14M | 10.70M |
| Financing Cash Flow | -91.57M | 45.24M | -7.58M | -5.08M | -76.20M |
Forum Energy Tech Technical Analysis
Positive
30.48
Price Trends
41.89
Positive
35.62
Positive
28.10
Positive
Market Momentum
3.47
Negative
82.83
Negative
91.56
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FET, the sentiment is Positive. The current price of 30.48 is below the 20-day moving average (MA) of 47.81, below the 50-day MA of 41.89, and above the 200-day MA of 28.10, indicating a bullish trend. The MACD of 3.47 indicates Negative momentum. The RSI at 82.83 is Negative, neither overbought nor oversold. The STOCH value of 91.56 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FET.
Forum Energy Tech Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $471.59M | 25.36 | 7.15% | 0.63% | 9.53% | 15.48% | |
71 Outperform | $99.07M | 8.78 | 11.89% | ― | 16.61% | -72.29% | |
68 Neutral | $592.56M | ― | -3.16% | ― | -1.29% | -123.25% | |
68 Neutral | $390.23M | 25.29 | 5.54% | 1.71% | -5.47% | 2.24% | |
66 Neutral | $563.40M | 26.67 | -17.49% | ― | -11.02% | ― | |
65 Neutral | $15.17B | 7.61 | 4.09% | 5.20% | 3.87% | -62.32% | |
47 Neutral | $123.72M | -4.39 | -21.55% | ― | -18.29% | -43.05% |
* Energy Sector Average
FET
Forum Energy Tech
57.86
39.42
213.77%
NGS
Natural Gas Services Group
37.83
12.19
47.52%
OIS
Oil States International
12.53
7.36
142.36%
GEOS
Geospace Technologies
9.32
0.92
10.95%
NCSM
Ncs Multistage Holdings
39.85
12.00
43.09%
RNGR
Ranger Energy Services
16.89
-0.09
-0.53%
Forum Energy Tech Corporate Events
Business Operations and StrategyPrivate Placements and Financing
Forum Energy Tech extends credit facility, boosts flexibility
Positive
Feb 5, 2026
On February 4, 2026, Forum Energy Technologies, Inc. amended its existing credit agreement with a syndicate of lenders led by Wells Fargo Bank, extending the facility’s scheduled maturity from September 8, 2028 to February 4, 2031, lowering the interest rate margin over SOFR on outstanding loans from a prior range of 2.25%–2.75% to a new range of 2.00%–2.50% linked to excess availability, and increasing the U.S. letter of credit sublimit from $70 million to $100 million while keeping the Canadian sublimit at $10 million. The revised terms improve Forum’s debt maturity profile, slightly reduce borrowing costs, and expand its U.S. letter of credit capacity, collectively enhancing the company’s financial flexibility and support for operational and commercial commitments.
The most recent analyst rating on (FET) stock is a Hold with a $48.00 price target. To see the full list of analyst forecasts on Forum Energy Tech stock, see the FET Stock Forecast page.
Executive/Board Changes
Forum Energy Tech Appoints Leslie Beyer to Board
Positive
Jan 12, 2026
On January 12, 2026, Forum Energy Technologies, Inc. appointed The Honorable Leslie A. Beyer to its Board of Directors, with her service to include roles on the Compensation and Human Capital Committee and the Nominating, Governance and Sustainability Committee. Beyer will receive standard non-employee director compensation, including an initial restricted stock award of approximately $150,000, is slated to stand for election as a Class I director at the 2028 annual meeting, and was appointed without any special arrangements or related-party transactions disclosed by the company.
The most recent analyst rating on (FET) stock is a Hold with a $33.00 price target. To see the full list of analyst forecasts on Forum Energy Tech stock, see the FET Stock Forecast page.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.