Forum Energy Technologies (FET) Emerging Growth Conference 91 summary

Company Overview and Leadership

• Manufactures products for oil, gas, defense, and renewables, with global reach and two main segments: Artificial Lift & Downhole (40% of revenue) and Drilling & Completions.

• 80% of revenue comes from activity-driven consumables, with the rest from capital equipment.

• Revenue is geographically balanced, with about half from outside the US.

• Leadership has deep industry experience and a focus on innovation and operational efficiency.

• Emphasized a global manufacturing presence with a focus on value-added solutions for energy production efficiency.

Financial Performance and Capital Allocation

• Revenue grew from $541M in 2021 to an estimated $791M in 2025, with 2026 guidance midpoint at $840M; EBITDA increased over fourfold.

• Compound annual revenue growth of 10% (2021–2025), outpacing the Russell 2000's 7%; adjusted cash flow CAGR of 46% vs. 9% for the Russell 2000.

• EBITDA margin improved, with 2026 guidance at $100M and a margin of approximately 12%.

• Significant capital returns: 10% share reduction in 2025, 69% debt reduction, and net leverage down to 1.2x; share repurchases (~1.4M shares at <$25/share).

• Free cash flow yield is higher and valuation metrics are more attractive than the Russell 2000; low leverage and strong liquidity.

Growth Strategy and Market Positioning

• Four pillars: track record, value, capital returns, and growth potential.

• “Beat the Market” strategy targets markets with few competitors and differentiated products, leveraging manufacturing know-how and global footprint.

• Leadership markets (2/3 of revenue) have 36% share in a $1.5B addressable market; growth markets offer significant expansion potential, with only 8% share in a $3B market.

• Examples of growth markets include defense (notably a submarine order for Indonesia), coiled line pipe, and international expansion of pump protection products.

• Goal to double share in growth markets by 2030, with scenarios projecting revenue growth to $1B (flat market) or $1.6B (growth scenario) by 2030; free cash flow could triple.