Forum Energy Technologies (FET) Q4 2025 earnings summary

Executive summary

• Achieved strong operational and financial performance in 2025 despite lower global drilling activity, tariffs, and geopolitical uncertainty.

• Fourth quarter 2025 revenue reached $202 million, with net income of $2 million and adjusted net income of $5 million, reflecting strong operational execution and cost management.

• Full year 2025 revenue was $791 million, with adjusted EBITDA of $86 million and free cash flow of $80 million, supported by improved working capital efficiency and asset monetization.

• Orders for 2025 totaled $891 million, resulting in a book-to-bill ratio of 113% and a year-end backlog of $312 million, the highest in 11 years and up 46% year-over-year.

• Repurchased 11% of shares outstanding in 2025, returning $35 million to shareholders and reducing net debt by 28%.

Financial highlights

• Fourth quarter 2025 revenue was $202 million, up 3% sequentially, exceeding guidance.

• Adjusted EBITDA for Q4 reached $23 million, at the top end of guidance and up nearly 13% from the prior six months.

• Full-year Free Cash Flow totaled $80 million, at the top end of guidance.

• Net debt reduced by 28% in 2025; repurchased 11% of shares outstanding.

• Gross profit for 2025 was $219 million, with a gross margin of 27.7%.

Outlook and guidance

• 2026 revenue guidance is $800–$880 million, up 6% at the midpoint.

• Adjusted EBITDA projected at $90–$110 million, a 16% increase.

• Adjusted net income guidance for 2026: $18 million–$38 million; Free Cash Flow: $55 million–$75 million.

• Q1 2026 revenue guidance: $190 million–$210 million; EBITDA: $21 million–$25 million.

• Expect to convert 65% of EBITDA into Free Cash Flow in 2026.