Forum Energy Technologies (FET) Q2 2026 earnings summary

Executive summary

• Q2 2026 revenue reached $226.2 million, up 13.2% year-over-year and 8% sequentially, with net income of $12.4 million, a 61.1% increase from Q2 2025, and EPS of $1.05, up over 160% sequentially.

• Both Drilling and Completions and Artificial Lift and Downhole segments saw revenue and operating income growth, driven by higher demand, product innovation, and cost savings initiatives.

• Operating margin improved to 9.3% from 4.1% year-over-year, with margin expansion across all segments.

• Orders totaled $236 million with a book-to-bill ratio of 104%, supporting backlog growth and market share gains.

• Raised full-year 2026 guidance for revenue, EBITDA, net income, and free cash flow, positioning for long-term growth.

Financial highlights

• Six-month revenue reached $434.9 million, up 10.7% year-over-year, with Q2 gross profit of $71.4 million and operating income of $20.5 million.

• Q2 EBITDA rose 39% to $32 million; net income surged 148% sequentially to $14 million (adjusted).

• Free cash flow of $10–$11 million generated in Q2 and first half; net debt reduced to $109–$115 million.

• Trailing 12-month EBITDA increased to $100 million; net leverage ratio improved from 1.4x to 1.1x.

• Diluted EPS for Q2 2026 was $1.05, compared to $0.61 in Q2 2025.

Outlook and guidance

• Full-year 2026 revenue expected between $870 million and $910 million; EBITDA between $115 million and $125 million.

• Net income guidance raised to $42–$52 million; free cash flow to $57–$77 million.

• Q3 2026 revenue projected at $225–$245 million; EBITDA at $31–$37 million.

• Q3 net income expected at $12–$18 million; free cash flow at $15–$25 million.

• Capital expenditures for 2026 expected below $10 million, focused on replacement of end-of-life machinery.