Forum Energy Technologies Reports Strong Fourth Quarter 2025 Results, Positions for Continued Growth in 2026 and Beyond
Forum Energy Technologies, In, a leading global provider of engineered products and services to the oil, natural gas, defense, and renewable energy sectors, today announced its financial results for the fourth quarter of 2025, highlighting solid revenue growth, robust backlog expansion, and strong operational execution that collectively position the company for continued growth in 2026.
The company reported fourth quarter 2025 revenue of $202.2 million, representing a healthy performance amid a challenging global energy environment. Net income for the quarter was $2.1 million, or $0.17 per diluted share. When adjusted for $2.9 million of items, including foreign tax settlements, asset impairments, restructuring costs, and other non-recurring expenses, the company achieved an adjusted net income of $5.0 million, or approximately $0.41 per diluted share. These results reflect both the company’s disciplined operational approach and its strategic focus on innovation and market penetration.
Neal Lux, President and Chief Executive Officer of Forum Energy Technologies, remarked, “2025 marked another significant step forward for FET as we continue to execute on our long-term 2030 vision. Our focus on commercial growth and product innovation has yielded meaningful bookings and backlog expansion, ensuring that we enter 2026 with the highest backlog in 11 years. This achievement underscores the effectiveness of our ‘Beat the Market’ strategy and our ability to deliver sustainable value to our shareholders.”
According to Mr. Lux, Forum Energy Technologies’ backlog stood at $312 million entering 2026, an increase of 46% compared to the previous year. Notably, nearly 12% of this backlog consists of products developed within the last few years, reflecting the company’s commitment to ongoing innovation and its ability to respond to evolving customer needs. “These results are a testament to our strategic execution, market insight, and operational excellence,” he added.
Strong Financial Performance Driven by Operational Efficiency
Forum Energy Technologies experienced significant acceleration in financial performance during the second half of 2025. The company reported EBITDA growth of nearly 13% compared to the first half of the year. This improvement was driven by higher revenue, enhanced operational efficiencies, and disciplined cost management. Additionally, working capital optimization and asset monetization contributed to a strong free cash flow position of $80 million for the full year.
The company’s capital allocation strategy also reflected a shareholder-friendly approach. During 2025, Forum Energy Technologies repurchased approximately 11% of its total shares outstanding, reflecting confidence in the company’s long-term growth trajectory and value creation potential. Moreover, net debt was reduced by 28%, enhancing the company’s balance sheet flexibility and financial resilience.
Segment Performance Highlights
Forum Energy Technologies’ performance in 2025 was supported by strong contributions from its two primary business segments: Drilling and Completions, and Artificial Lift and Downhole.
Drilling and Completions: Revenue for the fourth quarter reached $127 million, marking an 8% increase over the prior quarter. This growth was primarily driven by robust demand for drilling-related capital equipment across international markets, including subsea remotely operated vehicles (ROVs) and coiled line pipe. Adjusted EBITDA for the segment was $12 million. The book-to-bill ratio for Drilling and Completions was 84%, reflecting a slight moderation following strong orders in the previous quarter. This segment provides consumable products and capital equipment across drilling, subsea operations, coiled tubing, wireline services, and stimulation markets. The growth in international equipment demand underscores the segment’s ability to capitalize on global market opportunities and FET’s expertise in delivering high-value engineering solutions.
Artificial Lift and Downhole: This segment reported revenue of $75 million, representing a 4% decrease compared to the prior quarter. The decline was primarily attributable to lower volumes of production equipment and associated technologies. Despite this, adjusted EBITDA remained relatively flat at $17 million due to a favorable product mix, particularly in sand control and flow control solutions. The book-to-bill ratio for Artificial Lift and Downhole stood at 107%, driven by significant orders for production-related equipment. This segment is instrumental in supporting well construction, artificial lift systems, and oil and gas processing, demonstrating strong resilience and continued demand for advanced production solutions.
Global Footprint and Market Presence
Forum Energy Technologies is a truly global enterprise, with a diversified portfolio of products and services spanning the energy and defense industries. Headquartered in Houston, Texas, FET leverages its global footprint to deliver value-added solutions that enhance the safety, efficiency, and environmental performance of its customers’ operations. The company’s offerings are designed to meet the rigorous demands of oilfield and energy production, providing engineering excellence, operational reliability, and innovative technology integration across all markets.
The company’s strategic focus on innovation has resulted in a growing pipeline of products and solutions that address evolving market needs. Approximately 12% of the current backlog is comprised of recently developed products, demonstrating Forum Energy Technologies’ commitment to technology leadership and its proactive approach to staying ahead of industry trends. By continually investing in research and development, FET is ensuring that its portfolio remains competitive and aligned with global energy transitions, including the growing emphasis on sustainability and efficiency in both conventional and renewable energy sectors.
Non-GAAP Financial Measures and Reporting
Forum Energy Technologies reports its financial results in accordance with generally accepted accounting principles (GAAP). However, the company also utilizes non-GAAP financial measures to provide additional insights into its operational performance. Non-GAAP measures, including adjusted net income and adjusted EBITDA, are intended to offer management and investors a supplemental perspective on financial results by excluding certain non-recurring or non-cash items such as restructuring charges, asset impairments, foreign tax settlements, and transaction-related costs.
Management emphasizes that non-GAAP measures should not be considered a substitute for GAAP results, as they do not fully reflect all financial impacts and may differ from similar measures reported by other companies. Detailed reconciliations between GAAP and non-GAAP financial measures are provided in the company’s press release tables and financial disclosures. While the company cannot reasonably predict certain items impacting future GAAP net income, such as restructuring charges or foreign exchange gains and losses, it continues to provide guidance on adjusted performance metrics to offer investors transparency and clarity regarding operational trends and performance drivers.
