Forum Energy Technologies (FET) Q3 2026 earnings summary

Executive summary

• Q3 revenue rose 20.7% YoY to $236.8M and 5% QoQ; adjusted EBITDA increased 14% QoQ to $36M, adjusted net income reached $18.2M, and free cash flow was $30.3M.

• Operating income and net income rebounded to profit, supported by segment growth, operating leverage and cost savings.

• Strong demand and activity prompted higher FY2026 guidance; net debt declined and net leverage improved to 0.9x.

Financial highlights

• Q3 gross profit was $74.4M versus $40.2M; operating income was $20.0M versus a $6.1M loss, and net income was $11.2M versus a $20.6M loss.

• Q3 adjusted EBITDA margin was 15.2%, up from 14.0% QoQ; adjusted net income was $18.2M and adjusted diluted EPS was $1.51.

• Q3 operating cash flow was $32.0M and free cash flow before acquisitions was $30.3M; YTD free cash flow was $41M.

• 9M revenue increased 14.0% to $671.7M; net income was $28.1M versus an $11.7M loss, and adjusted EBITDA was $90.6M versus $63.7M.

• Q3 orders were $243.8M, with a 103% book-to-bill ratio; orders exceeded revenue in six of the past seven quarters.

Outlook and guidance

• FY2026 guidance was raised to revenue of $900M–$920M, adjusted EBITDA of $123M–$129M, adjusted net income of $52M–$58M and free cash flow of $66M–$71M.

• Q4 guidance: revenue $230M–$250M, adjusted EBITDA $33M–$39M, net income $15M–$21M and free cash flow $25M–$30M.

• Q4 guidance midpoints imply ~19% YoY revenue growth and 59% adjusted EBITDA growth; a one-time ~$5M stock-compensation charge is expected to affect GAAP earnings.

• 2026 capital expenditures are expected below $10M; annualized Q4 guidance midpoints imply 2027 revenue growth of 5% and adjusted EBITDA growth of 14%.

• The 2030 plan targets doubling revenue, quadrupling EBITDA and tripling free cash flow versus 2025.