Forum Energy (FET) investor relations material

Strategic vision and market positioning

• Focus on leadership and growth markets, leveraging proven products and innovation to drive share gains, especially in coil tubing, wireline, subsea, and sand control systems.

• Vision 2030 aims to double revenue by 2030 through market share expansion and capital-light growth, targeting a 50%+ increase in addressable markets.

• Growth markets, including coil line pipe and downhole pump protectors, are expected to increase share from 8% to 16% in five years, potentially adding $250 million in revenue.

• International expansion is prioritized, with strong presence in the Middle East and Argentina, and plans to export U.S.-proven technologies globally.

• Defense and non-energy sectors, such as naval rescue vehicles, are identified as significant adjacent growth opportunities.

Operational efficiency and innovation

• Product innovation, such as high-strength coil tubing for sour service and the Unity ROV operating system, enhances customer efficiency and reduces environmental impact.

• Service intensity trends, like increased frac stages and longer laterals, drive higher demand for consumables and capital products.

• Consumable products benefit from increased usage cycles, creating recurring demand as operational intensity rises.

• Coil line pipe offers significant time and cost savings over traditional steel pipe, with high incremental margins and scalable production capacity.

• Capital-light business model enables revenue growth without significant CapEx, leveraging existing facilities and workforce.

Financial performance and capital allocation

• 2025 adjusted EBITDA guidance set at $85 million, reflecting industry softness but supported by a strong backlog and cost-saving initiatives.

• Free cash flow guidance raised to $60–$80 million, driven by working capital reductions and real estate transactions, yielding 19–25% on market cap.

• Share repurchase program authorized for $75 million, with 5% of shares repurchased year-to-date; capital allocation split between debt reduction and shareholder returns.

• Conservative net leverage maintained at 1.4x, with flexibility to pursue M&A or further buybacks based on value.

• Beat-the-market strategy has increased annualized revenue per rig by 20% since 2022, supporting Vision 2030 goals.