Forum Energy Technologies (FET) Q4 2024 earnings summary

Executive summary

• Revenue increased 10% to $816 million in 2024, with EBITDA up 49% to $100 million and free cash flow reaching $105 million, the highest since 2015.

• Net loss was $135 million, impacted by a $119 million non-cash intangible asset impairment and an $11 million tax valuation allowance release.

• Completed the Variperm acquisition, which contributed to financial growth and market share gains, especially in the ER market.

• Authorized a $75 million share repurchase program, with $2 million repurchased in January 2025.

• Safety performance improved to world-class levels in 2024.

Financial highlights

• Full year 2024 revenue up 10% and adjusted EBITDA up 49% year-over-year, with Q4 revenue at $201 million and EBITDA at $22 million.

• Free cash flow reached $105 million, $35 million above guidance, and operating cash flow was $92 million.

• Net debt reduced by 30% over three years, ending 2024 at $149 million, though another source reports $186.5 million.

• EBITDA margin increased by over 300 basis points to 12% year-over-year.

• Real estate sale lease-back and working capital reductions contributed to strong cash flow.

Outlook and guidance

• 2025 expected to be a transitional year with global drilling and completion activity forecasted to decline 2–5%.

• North American rig and frac fleet counts expected to soften; international activity to remain flat.

• 2025 adjusted EBITDA guidance: $85–$105 million; free cash flow guidance: $40–$60 million.

• 50% of free cash flow to be allocated to net debt reduction, 50% to strategic investments and share repurchases.

• Q1 2025 revenue guidance: $185–$205 million; EBITDA: $20–$24 million.