Core Insights - Forum Energy Technologies, Inc. (NYSE:FET) experienced a significant share price increase of 15.26% from February 13 to February 20, 2026, marking it as one of the top-performing energy stocks during that week [1]. Company Performance - The company reported better-than-expected Q4 2025 results on February 20, with adjusted earnings of $0.41 per share, exceeding estimates by $0.05. Revenue for the quarter was over $202 million, surpassing forecasts by $11.7 million [3]. - Forum's free cash flow for the full year 2025 was reported at $80 million [3]. Backlog and Future Outlook - Forum Energy Technologies entered 2026 with a backlog of $312 million, which is a 46% increase from the previous year and the highest level in 11 years. Notably, nearly 12% of this backlog consists of products developed in the last few years [4]. - The company provided a strong outlook for FY 2026, targeting revenue between $800 million and $880 million, indicating a year-over-year growth of 6% at the midpoint. EBITDA is projected to grow by 16% year-over-year to a range of $90 million to $110 million, with adjusted net income expected between $18 million and $38 million. Free cash flow for the year is anticipated to be between $55 million and $75 million [5].

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Financial Data and Key Metrics Changes - Fourth quarter revenue reached $202 million, exceeding the top end of guidance and increasing 3% sequentially, despite a flat global rig count [13] - Adjusted EBITDA for the quarter was $23 million, at the top end of guidance, driven by higher revenue and cost reductions [13] - Free cash flow generation was strong, totaling $80 million for the full year, with a free cash flow conversion rate of 76% when excluding sale-leaseback proceeds [16][19] Business Line Data and Key Metrics Changes - Drilling and completion revenue increased by 8% to $127 million, while subsea product line revenue rose by 25% due to ROV projects and a significant rescue submarine order [14] - Coiled tubing revenue was up 13%, supported by strong sales in North America [14] - The artificial lift and downhole segment had a book-to-bill ratio of 107%, with revenue of $75 million, down 4% sequentially [15] Market Data and Key Metrics Changes - International revenue increased by 8%, marking the second consecutive quarter where international revenue exceeded U.S. revenue, which declined by 2% [13] - The company reported a full year book-to-bill ratio of 113%, with a nearly 190% book-to-bill for the subsea product line [6][10] Company Strategy and Development Direction - The company is focused on its strategic vision, FET 2030, aiming for market share gains through customer engagement, product innovation, and geographic expansion [5] - New product development is central to the company's strategy, with 10 new products commercialized in 2025, including the Secura Series stage collars and DuraCoil 95 [8][9] - The company expects to double revenue in five years, driven by an expanding addressable market and targeted market share gains [11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in a bullish long-term outlook, anticipating increased oil and natural gas demand over the next five years [10] - The company expects revenue growth of 6% and EBITDA to increase by 16% for the full year 2026, with guidance for revenue between $800 million and $880 million [11][12] - Management highlighted the importance of maintaining margin and cost discipline while navigating a challenging operating environment [10] Other Important Information - The company ended the year with a net debt of $107 million and a net leverage ratio of 1.2x, with liquidity of $108 million [16] - The credit facility maturity was extended to February 2031, providing significant flexibility for strategic initiatives [16] Q&A Session Summary Question: Can you talk about the trajectory in the subsea business for 2026 and 2027? - Management indicated strong demand in energy and defense, with expectations to convert backlog in 2026 and add for 2027 and beyond [26] Question: Where do you see the biggest benefit for FET in unconventional oil or gas development globally? - Management highlighted opportunities in Argentina and Saudi Arabia, focusing on adopting advanced technology [27] Question: What were the pluses and minuses in the quarter that led to exceeding guidance? - Management noted solid execution and no significant end-of-year slowdown, particularly in the subsea product line [33][36] Question: How do you achieve strong free cash flow guidance in a growth market? - Management explained that cash flow guidance is based on effective working capital management and revenue growth [41][42] Question: What is the impact of the recent tariff ruling? - Management stated that while some tariffs were struck down, others remain in place and have impacted steel supply [95] Question: What are the expectations for M&A opportunities? - Management noted an increase in companies being marketed for sale, with a focus on finding businesses that fit their strategic criteria [63][64]

Financial Data and Key Metrics Changes - Fourth quarter revenue reached $202 million, exceeding the top end of guidance and increasing 3% sequentially, driven by strength in offshore and international markets [13] - Adjusted EBITDA for the quarter was $23 million, at the top end of guidance, reflecting higher revenue and cost reductions [13] - Free Cash Flow generation was strong, totaling $80 million for the year, with a fourth quarter Free Cash Flow of $22 million [10][15] Business Line Data and Key Metrics Changes - Drilling and completion revenue was $127 million, up 8%, with Subsea product line revenue increasing 25% due to ROV projects and a significant rescue submarine order [14] - Coiled tubing revenue rose 13%, supported by strong sales in North America, while drilling product line revenue increased 11% due to international demand [14] - Artificial Lift and Downhole segment revenue was $75 million, down 4% sequentially, with a book-to-bill of 107% driven by large orders for natural gas processing units [15] Market Data and Key Metrics Changes - International revenue increased by 8%, surpassing U.S. revenue, which declined by 2% due to project timing and softer demand [13] - The company reported a book-to-bill ratio of 93% for the fourth quarter, primarily reflecting order timing in the drilling and completion segment [14] Company Strategy and Development Direction - The company is focused on its "Beat the Market" strategy, which has led to a 20% increase in revenue per global rig since its inception in 2022 [5] - The strategic vision, FET 2030, aims to double revenue in five years by expanding addressable markets and gaining market share [11] - Innovation remains central to growth, with 10 new products commercialized in 2025, including the Secura Series stage collars and DURACOIL 95 [8][9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in a bullish long-term outlook, anticipating a 6% revenue growth and a 16% increase in EBITDA for 2026 [11] - The company expects to convert 65% of EBITDA into Free Cash Flow, projecting between $55 million and $75 million for 2026 [12] - Management highlighted the importance of maintaining margin and cost discipline while navigating a challenging operating environment [10] Other Important Information - The company ended the year with a net debt of $107 million and a net leverage ratio of 1.2x, with liquidity of $108 million [16] - The credit facility maturity was extended to February 2031, providing flexibility for strategic initiatives [16] Q&A Session Summary Question: Trajectory in Subsea business for 2026 and 2027 - Management expects strong demand in the Subsea business, with a 190% book-to-bill in 2025 and plans to convert backlog in 2026 [26] Question: Areas for potential acquisitions - Management is interested in downhole type businesses that meet their criteria of being differentiated and accretive without stressing the balance sheet [30] Question: Performance in Q4 and guidance for Q1 - Management noted solid execution in Q4, with strong revenue growth in the Subsea product line and no significant end-of-year slowdown [36] Question: Free Cash Flow guidance and working capital management - Management highlighted strong working capital efficiencies and expects to maintain good cash flow despite growth challenges [40] Question: Impact of tariffs and deferred tax assets - Management discussed the ongoing impact of tariffs on steel supply and the complexities of their tax situation due to deferred tax assets [95][96]

Financial Data and Key Metrics Changes - Fourth quarter revenue reached $202 million, exceeding the top end of guidance and increasing 3% sequentially, driven by strength in offshore and international markets [12] - Adjusted EBITDA for the quarter was $23 million, at the top end of guidance, with free cash flow generation totaling $80 million for the year [9][12] - Net debt was reduced by 28% to $107 million, with a net leverage ratio of 1.2x, indicating improved financial health [16] Business Line Data and Key Metrics Changes - Drilling and completion revenue increased by 8% to $127 million, while the subsea product line revenue rose by 25% due to strong project execution [13] - Coiled tubing revenue was up 13%, and drilling product line revenue increased by 11%, supported by international demand [13] - The artificial lift and downhole segment saw a book-to-bill of 107%, although revenue decreased by 4% sequentially [14] Market Data and Key Metrics Changes - International revenue increased by 8%, while U.S. revenue declined by 2% due to project timing and softer demand [12] - The company reported a full year book-to-bill of 113%, with a particularly strong performance in the subsea product line, achieving a nearly 190% book-to-bill [6] Company Strategy and Development Direction - The company is focused on its strategic vision, FET 2030, aiming for market share gains through customer engagement, product innovation, and geographic expansion [5] - New product development is central to growth, with 10 new products commercialized in 2025, including innovations like the Secura Series stage collars and DuraCoil 95 [7][8] - The company anticipates a 50% expansion in addressable markets over the next five years, potentially doubling revenue [10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in a bullish long-term outlook, expecting oil and natural gas demand to grow significantly [9] - Despite a challenging environment, the company aims to achieve revenue growth of 6% and EBITDA growth of 16% in 2026 [10] - The management highlighted the importance of maintaining margin and cost discipline while executing on strategic initiatives [8][9] Other Important Information - The company completed two real estate sale-leaseback transactions generating $15 million in net cash proceeds [15] - The credit facility was extended to February 2031, providing significant flexibility for funding strategic initiatives [16] Q&A Session Summary Question: Trajectory in subsea business for 2026 and 2027 - Management expects strong demand in the subsea business, with a focus on converting backlog and expanding into international unconventional markets [26] Question: Acquisition targets and areas of interest - The company is interested in downhole businesses that offer differentiated solutions and are accretive to financial metrics [29] Question: Factors contributing to exceeding guidance in Q4 - Strong execution by teams and no significant end-of-year slowdown contributed to better-than-expected results [33] Question: Guidance for Q1 and revenue growth despite rig count decline - The company anticipates revenue growth due to backlog and structural cost savings, despite a projected decline in global rig count [37] Question: Free cash flow guidance and working capital management - The company expects strong free cash flow driven by effective working capital management and revenue growth [40] Question: Timing of share buybacks in 2026 - Management indicated that share buybacks may be back-end loaded in 2026, similar to the previous year [46] Question: Growth avenues in DNC business and artificial lift - The subsea and artificial lift segments are expected to drive significant growth, particularly in international markets [54] Question: M&A opportunities and seller expectations - The company is seeing an increase in companies for sale, with seller expectations rising due to improved public company stock multiples [63] Question: Impact of tariffs and deferred tax assets - The company is focused on mitigating tariff impacts and optimizing tax strategies as profitability grows [95][100]

Core Insights - Forum Energy Technologies (FET) reported quarterly earnings of $0.41 per share, exceeding the Zacks Consensus Estimate of $0.36 per share, and a significant improvement from a loss of $0.48 per share a year ago [1] - The earnings surprise of +13.89% indicates strong performance, with the company having surpassed consensus EPS estimates two times over the last four quarters [2] Financial Performance - The company posted revenues of $202.2 million for the quarter ended December 2025, surpassing the Zacks Consensus Estimate by 6.14%, and showing a slight increase from $201 million in the same quarter last year [3] - Forum Energy has topped consensus revenue estimates three times over the last four quarters [3] Stock Performance - Forum Energy shares have increased approximately 41% since the beginning of the year, significantly outperforming the S&P 500's gain of 0.5% [4] - The stock currently holds a Zacks Rank 1 (Strong Buy), indicating expectations for continued outperformance in the near future [7] Future Outlook - The current consensus EPS estimate for the upcoming quarter is $0.32 on revenues of $193.8 million, and for the current fiscal year, it is $1.65 on revenues of $802.9 million [8] - The outlook for the industry, specifically the Oil and Gas - Mechanical and Equipment sector, is currently in the bottom 41% of Zacks industries, which may impact stock performance [9]

Financial Performance - Fourth quarter 2025 revenue was $202.2 million, with a net income of $2.1 million or $0.17 per diluted share[1] - Full year 2025 revenue totaled $791.5 million, a decrease from $816.4 million in 2024[17] - The company reported a net loss of $9,660,000 for the year ended December 31, 2025, significantly improved from a net loss of $135,326,000 in 2024[21] - Total revenue for the year ended December 31, 2025, was $791,474,000, a decrease from $816,425,000 in 2024, reflecting a decline of about 3%[44] - The company reported a net loss of $9,660 for the year ended December 31, 2025, compared to a net loss of $135,326 in 2024[36] EBITDA and Cash Flow - The company achieved an adjusted EBITDA of $23 million for Q4 2025, with full year adjusted EBITDA guidance of $90 - $110 million, representing a 16% increase[2] - Total EBITDA for the year ended December 31, 2025, was $68,654,000, compared to a loss of $43,219,000 in 2024, showing a significant recovery in operational performance[25] - Free cash flow for the full year 2025 was $80 million, with a 65% free cash flow conversion rate[3] - Free cash flow before acquisitions for the year ended December 31, 2025, was $79,968,000, down from $105,073,000 in 2024, representing a decrease of approximately 24%[40] - The free cash flow yield as of February 18, 2026, was 11%, calculated using a market capitalization of $65 million[40] Orders and Backlog - Orders for the year reached $891 million, resulting in a book-to-bill ratio of 113%[2] - The backlog as of the end of 2025 was $312 million, the highest in 11 years and 46% greater than the previous year[1] - Total orders for the three months ended December 31, 2025, were $187,197,000, slightly down from $189,955,000 in the same period of 2024[27] - The book-to-bill ratio for total orders was 0.93 for the three months ended December 31, 2025, indicating a slight decline in demand compared to 0.94 in the previous year[27] Segment Performance - Drilling and Completions revenue increased by 8% to $127 million, driven by strong demand for drilling-related capital equipment[4] - Artificial Lift and Downhole revenue decreased by 4% to $75 million, with a book-to-bill ratio of 107% due to large orders for production-related equipment[5] - The operating income for the Drilling and Completions segment was $12,835,000 for 2025, down from $17,766,000 in 2024, reflecting a decrease in operating margin from 3.8% to 2.7%[25] - The operating margin for the Artificial Lift and Downhole segment was 13.1% for the year ended December 31, 2025, slightly down from 14.1% in 2024[25] - Revenue from the Drilling and Completions segment for the three months ended December 31, 2025, was $126,916,000, accounting for 62.8% of total revenue[48] Market Outlook - The company expects revenue and EBITDA growth in 2026, supported by strong backlog and market share gains, despite a relatively flat global market activity outlook[4] - Average global rig count for 2025 was 1,818, down from 1,948 in 2024, indicating a reduction of approximately 6.7%[44] - Revenue per rig increased to $435 in 2025 from $419 in 2024, marking an increase of about 3.8%[44] Other Financial Metrics - Net cash provided by operating activities for the year ended December 31, 2025, was $70,402,000, compared to $92,191,000 in 2024, a decrease of approximately 23.6%[21] - The net leverage ratio as of December 31, 2025, was 1.2, indicating the company's ability to meet its financial obligations[42] - The adjusted operating income for the year ended December 31, 2025, was $43,727, which is 5.5% of revenue[32] - The company incurred restructuring and other costs of $633 for the three months ended December 31, 2025[29] - The diluted EPS as reported for the three months ended December 31, 2025, was $0.17, while the adjusted diluted EPS was $0.41[29]

HOUSTON--(BUSINESS WIRE)--Forum Energy Technologies, Inc. (NYSE: FET) today announced fourth quarter 2025 revenue of $202.2 million and net income of $2.1 million or $0.17 per diluted share. Adjusted for $2.9 million of foreign tax settlement, asset impairments, restructuring costs and other items, adjusted net income was $5.0 million or approximately $0.41 per diluted share.1 Neal Lux, President and Chief Executive Officer, remarked, "2025 was another great step forward and further positioned. ...

Core Viewpoint - The article emphasizes the importance of identifying and maintaining stock price trends for successful short-term investing, highlighting the utility of a specific screening strategy to find stocks with strong fundamentals and positive momentum. Group 1: Stock Screening Strategy - The "Recent Price Strength" screen is designed to identify stocks with sufficient fundamental strength to sustain their upward price trends, focusing on those trading in the upper portion of their 52-week high-low range, indicating bullishness [3]. - This screening method simplifies the process of shortlisting stocks that are likely to maintain their recent uptrend, which is crucial for short-term investors [3]. Group 2: Company Analysis - Forum Energy Technologies (FET) - Forum Energy Technologies (FET) has shown a significant price increase of 67.3% over the past 12 weeks, indicating strong investor interest and potential for further upside [4]. - FET has also experienced a price increase of 19.8% over the last four weeks, confirming that the upward trend is still intact [5]. - Currently, FET is trading at 101.1% of its 52-week high-low range, suggesting it may be on the verge of a breakout [6]. Group 3: Fundamental Strength Indicators - FET holds a Zacks Rank 1 (Strong Buy), placing it in the top 5% of over 4,000 ranked stocks based on earnings estimate revisions and EPS surprises, which are critical for near-term price movements [6]. - The stock has an Average Broker Recommendation of 1 (Strong Buy), reflecting high optimism from the brokerage community regarding its near-term price performance [7]. - Historically, Zacks Rank 1 stocks have generated an average annual return of +25% since 1988, indicating a strong track record for this rating [7].