FET

This article first appeared on GuruFocus. Release Date: July 31, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Revenue, EBITDA, and net income all exceeded the high end of guidance, with revenue up 8% sequentially and EBITDA up 39%. Book-to-bill ratio of 104%, exceeding revenue for five of the last six quarters, indicating strong demand. Significant margin expansion, with artificial lift and downhole segment EBITDA margins reaching nearly 25%. Net leverage ratio improved dramatically from 1.4x to 1.1x, strengthening the balance sheet. Raised full-year 2026 guidance for revenue, EBITDA, net income, and free cash flow, reflecting confidence in growth. Middle East conflict negatively impacted regional activity, affecting international operations. Revenue from mechanical production equipment decreased due to timing of shipments, partially offsetting growth. Accounts receivable increased with revenue, potentially impacting cash flow. International revenue per rig remains lower than in the U.S., indicating untapped potential but also a gap. Dependence on market activity improvements, with global rig count flat in the first half, limiting organic growth. Warning! GuruFocus has detected 3 Warning Signs with FET. Is FET fairly valued? Test your thesis with our free DCF calculator. Q: What drove the company's performance that exceeded even the high end of guidance for the second quarter of 2026? A: Neil Lux, President and CEO, attributed the outperformance to strong execution by the team, which stepped up to a faster cadence. Key drivers included robust market penetration and adoption of new technology in the Canadian oil sands, a significant turnaround in the drilling product line following operational restructuring, and excellent execution in the subsea business converting backlog into revenue. He expressed confidence in the team's ability to increase the pace again in Q3. Q: Can you elaborate on the significant margin expansion seen in the second quarter, which appeared to exceed what would be expected from just higher throughput? A: Lyle Williams, CFO, explained that the margin lift was driven by three factors: operating leverage from incremental growth, the full realization of cost reduction initiatives that were wrapped up in Q1, and a favorable product mix. The high-value, high-margin downhole product line grew significantly, while lower-margin production equipment shipments decreased due to timing. He noted these improvements are sustainable, as cost savings are locked in and continued share gains in targeted high-margin products should support similar margins going forward. Q: How is the company thinking about capital allocation, particularly regarding leverage targets and the balance between debt reduction, acquisitions, and share buybacks? A: Neil Lux stated that further debt reduction is a priority to build "dry powder" for potential acquisitions. The company is always evaluating acquisition opportunities that meet its criteria of differentiated products, targeted markets, and accretive financials, without increasing leverage. The ultimate goal is to grow free cash flow per share. Regarding buybacks, he noted that cash flow is weighted to the back half of the year, so share repurchases will be aligned with cash generation. Q: What is the rough geographic allocation for the projected 50% increase in the addressable market over the next five years? A: Neil Lux explained that the company's market share, defined as revenue per rig, is over $700,000 annually in the US but only around $300,000 internationally. The growth opportunity lies in exporting technologies developed for US unconventional shale to regions like the Middle East and Latin America. He expects international revenue to continue growing over time, without giving up on North American technology, as this represents a significant growth driver. Q: How much of the recent revenue growth is attributable to market activity improvement versus market share gains? A: Neil Lux indicated that a good portion of the growth is from share gains, as the global rig count has been essentially flat in the first half of the year. While a modest activity increase is expected, much of the growth comes from share gains, such as the adoption of key technology in the Canadian oil sands and increased demand for consumables like wireline and coil tubing as more frac fleets work. Q: With the updated guidance approaching $900 million in revenue, is the company accelerating down its 2030 path, or is the end point of that path getting bigger? A: Neil Lux affirmed that the company is on the path laid out in its 2030 vision. He noted that the path could lead to $1 billion in a flat market or $1.6 billion over the next five years if markets grow and the company continues to gain share. He added that the Middle East conflict and energy security concerns may have brought some activity forward, making 2026 potentially slightly better than the initially expected flat year. Q: Are you seeing signs of new equipment additions in the US pressure pumping market, given the tightness and potential need for more equipment? A: Neil Lux said the company is seeing activity in the background, but it is focused on upgrades to existing fleets rather than large new fleet additions. He noted that FET provides components with shorter lead times (a quarter or two) compared to items like engines, and is seeing pick-up on the replacement side. He agreed the frac market is tight but noted customers are finding efficiencies to increase the use of FET's consumables. Q: Are you seeing international customers in frontier areas like North Africa, Turkey, and Pakistan seeking new equipment rather than recycled US equipment? A: Neil Lux confirmed this trend, citing the sale of the company's newest Duraline manifold technology to Argentina, which is not even widely used in the US yet. He highlighted FET's global footprint and ability to ship technology worldwide as a key advantage. Customers are increasingly interested in matching US efficiency, and while the initial sale is for capital equipment, the follow-on consumables business is where the company gets excited. Q: Could your lead times extend if the US frac market suddenly signals a push for 20-25 new fleets early next year? A: Neil Lux said the company would adapt to a massive increase in demand, noting the teams are nimble and in constant communication with customers. He also highlighted the growing power demand story, mentioning key orders in the heat transfer side. He pointed to a massive market opportunity in data center and mobile power, where every engine supplied needs a radiator, with 5,000-6,000 engines potentially delivered over the next five to six years. The company is building a backlog in that business. Q: What is the potential market size in Venezuela, and does it present upside to the FET 2030 goals? A: Neil Lux described Venezuela as a potentially huge market, noting the company has been largely absent since around 2007. He recalled the infrastructure needing work even then and imagines it is worse now. He emphasized the company's strategy to remain nimble and go where activity is, whether in Venezuela, Argentina, or the Middle East, ensuring its products are available to support oil production wherever it occurs. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Interested in Forum Energy Technologies, Inc.? Here are five stocks we like better. Forum Energy Technologies exceeded second-quarter guidance: Revenue rose 8% sequentially to $226 million, adjusted EBITDA increased 39% to $32 million, and adjusted net income climbed 148% to $14 million. Orders totaled $236 million, resulting in a 104% book-to-bill ratio. Both operating segments expanded margins on stronger demand, favorable product mix, restructuring and cost reductions. Drilling and Completions revenue grew 10%, while Artificial Lift and Downhole revenue increased 6% and approached a 25% EBITDA margin. The company raised its 2026 outlook to $870 million-$910 million in revenue, $115 million-$125 million in adjusted EBITDA and $57 million-$77 million in free cash flow. Free cash flow was $10 million in the quarter, and net leverage improved to 1.1 times as net debt fell to $115 million. Forum Energy Technology Shares Rise As Restructuring Progresses Forum Energy Technologies (NYSE:FET) reported second-quarter results that exceeded its guidance, citing market-share gains, higher-margin product mix, cost actions and execution across its operating segments. The company also raised its full-year 2026 outlook for revenue, EBITDA, net income and free cash flow. Revenue rose 8% sequentially to $226 million in the second quarter, while adjusted EBITDA increased 39% to $32 million and adjusted net income increased 148% to $14 million, according to Chief Financial Officer Lyle Williams. Quarterly orders totaled $236 million, producing a book-to-bill ratio of 104%. Orders have exceeded revenue in five of the past six quarters, Williams said. → Why SK hynix Could Be the Best AI Chip Stock to Buy Now “Revenue, EBITDA, and net income all exceeded the high end of guidance as our Beat the Market strategy continued to deliver,” Williams said. Forum said both operating segments contributed to its quarterly performance. Drilling and Completions revenue increased 10% to $139 million, driven by demand for coiled tubing products, wireline cables and capital equipment, including Iron Roughnecks and radiators. Segment EBITDA rose 29% to about $16 million, while its EBITDA margin expanded 180 basis points to 12%. → Microsoft Just Flipped the AI Spending Narrative Overnight Artificial Lift and Downhole revenue increased 6% to $87 million, fueled by demand for sand and flow-control products, artificial-lift products and casing hardware. EBITDA for the segment increased 30% to approximately $22 million, and its EBITDA margin approached 25%. Williams said the segment’s favorable product mix generated an incremental EBITDA margin of 95%, as higher sales of high-value downhole products were partly offset by lower shipments of mechanical production equipment due to shipment timing. → Carrier Earnings Could Send the Stock to a New All-Time High Management identified three principal contributors to the company’s performance: continued growth in Canadian oil sands markets, a turnaround in drilling products after operational restructuring and cost reductions, and the conversion of subsea backlog into revenue through deliveries of remotely operated vehicle systems, aftermarket products and related technologies. CEO Neal Lux said stronger North American completions supported frack utilization and demand for the company’s wireline, coiled tubing and downhole offerings. The company also cited robust Canadian oil sands activity. Outside North America, activity was affected by conflict in the Middle East, although Lux said investment in offshore and unconventional developments remained strong. Lux said Forum is pursuing growth through technology development, geographic expansion and market-share gains. Since launching its Beat the Market strategy in 2022, the company has increased revenue per global rig by 34%, he said. Among its international initiatives, Forum said field trials of its SandGuard artificial-lift protection solution are progressing with a large Middle Eastern oil company. The company also said it had received regulatory approval to deliver a significant number of coiled tubing strings into Venezuela, creating potential demand for pressure-control products and Coiled Line Pipe. Forum also reported increased U.S. inquiries for its DuraLine technology following a substantial Argentina order announced in the prior quarter. In subsea, it received aftermarket orders to upgrade remotely operated vehicles built by both Forum and competitors using its Unity software and control platform. In its heat-transfer business, the company received an order from a major service company for a high-temperature frac application designed to operate at 140 degrees Fahrenheit. It also received an initial stationary cooling order for power generation and a “meaningful” order for its existing Powertron offering. Lux said the developments support the company’s expansion into data-center and mobile-power markets. During the question-and-answer session, Lux said international revenue per rig remains below the U.S. level, describing U.S. revenue per rig as more than $700,000 annually compared with “$300,000 and change” internationally. He said the company sees an opportunity to export technologies developed for U.S. unconventional operations to the Middle East, Latin America and other regions. Forum generated $10 million in free cash flow during the quarter. Net debt declined to $115 million, while trailing 12-month EBITDA increased to $100 million from $89 million. As a result, net leverage improved to 1.1 times from 1.4 times, Williams said. The company ended the quarter with $96 million in total liquidity. It repurchased approximately 8 million shares during the first half of 2026 and said it has returned $42 million to shareholders over the past two years. Lux said further debt reduction is intended to build financial flexibility for potential acquisitions and other strategic objectives. The company will continue to evaluate acquisition opportunities based on earnings accretion, free-cash-flow potential and alignment with its strategy, management said. Forum does not expect a large increase in selling, general and administrative expenses for the remainder of the year after taking structural costs out of the business and deploying technology and software tools to improve efficiency, Lux said. Forum raised its full-year guidance and now expects: Revenue of $870 million to $910 million; Adjusted EBITDA of $115 million to $125 million; Adjusted net income of $42 million to $52 million; and Free cash flow of $57 million to $77 million. At the midpoint of the new revenue and EBITDA ranges, the company expects year-over-year growth of 13% and 40%, respectively, with an incremental margin of 34%. For the third quarter, Forum forecast revenue of $225 million to $245 million, adjusted EBITDA of $31 million to $37 million, net income of $12 million to $18 million and free cash flow of $15 million to $25 million. At the midpoint, management said the revenue and EBITDA outlook would represent approximately 20% and 48% growth, respectively, from the third quarter of 2025. Lux said Forum expects industry activity to remain broadly stable, with modest improvement in selected markets during the second half. He added that the company expects to outperform through market-share gains, product innovation, geographic expansion and operating discipline as it pursues its 2030 growth plan. Forum Energy Technologies Inc is a global provider of advanced products and services to the oil and gas industry. The company's offerings span the full lifecycle of exploration and production, including drilling, well construction, completion and production, and subsea operations. Key product lines include premium drill bits, downhole drilling motors, directional drilling tools, subsea umbilicals, and pressure control equipment, complemented by field service support and engineered solutions for complex projects. Established through the merger of Forum Oilfield Technologies, Triton Group, Global Energy Group, and Allen International in 2010, Forum Energy Technologies has built a diversified technology portfolio designed to meet evolving industry requirements. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Forum Energy Technologies Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for July 2026.

Forum Energy Technologies (FET) came out with quarterly earnings of $1.16 per share, beating the Zacks Consensus Estimate of $0.57 per share. This compares to a loss of $0.1 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +103.51%. A quarter ago, it was expected that this provider of manufactured technologies and applied products in the energy sector would post earnings of $0.44 per share when it actually produced earnings of $0.47, delivering a surprise of +6.82%. Over the last four quarters, the company has surpassed consensus EPS estimates four times. Forum Energy, which belongs to the Zacks Oil and Gas - Mechanical and and Equipment industry, posted revenues of $226.22 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 6.53%. This compares to year-ago revenues of $199.8 million. The company has topped consensus revenue estimates four times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Forum Energy shares have added about 38.3% since the beginning of the year versus the S&P 500's gain of 6.9%. While Forum Energy has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Forum Energy was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.54 on $219 million in revenues for the coming quarter and $2.16 on $858.5 million in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Oil and Gas - Mechanical and and Equipment is currently in the top 38% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Another stock from the same industry, Pedevco Corp. (PED), has yet to report results for the quarter ended June 2026. This company is expected to post quarterly earnings of $0.36 per share in its upcoming report, which represents a year-over-year change of +190%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Pedevco Corp.'s revenues are expected to be $38 million, up 445.2% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Forum Energy Technologies, Inc. (FET) : Free Stock Analysis Report Pedevco Corp. (PED) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Orders: $236 million, book-to-bill ratio of 104% Revenue: $226 million, up 8% sequentially Net income and earnings per share: $12 million and $1.05, up 176% and 169% Adjusted net income and adjusted earnings per share1: $14 million and $1.16, up 148% and 147% Adjusted EBITDA: $32 million, up 39% sequentially Shareholder returns: $8 million repurchased in first half 2026 HOUSTON, July 30, 2026--(BUSINESS WIRE)--Forum Energy Technologies, Inc. (NYSE: FET) today announced second quarter 2026 results and updates to third quarter and full year 2026 guidance. Neal Lux, President and Chief Executive Officer, remarked, "At the beginning of the quarter, we guided a substantial increase in financial performance, and our team exceeded expectations. Sequentially, we grew market share 13%, increased revenue 8%, expanded gross and adjusted EBITDA margins 230 and 300 basis points, and improved adjusted net income 148%. Importantly, free cash flow enabled us to repurchase shares while reducing net leverage to 1.1 times. By executing our 'Beat the Market' strategy and delivering solid operational performance, we achieved a stellar quarter. "With the strength of our first half performance, market share gains, and backlog, we are raising all guidance metrics for full year 2026. This expected growth puts us on the path to deliver our FET 2030 strategic vision." Segment Results (unless otherwise noted, comparisons are second quarter 2026 versus first quarter 2026) Drilling and Completions segment revenue was $139 million, a 10% increase due to higher demand for coiled tubing, wireline cables, and capital equipment, particularly iron roughnecks and radiators. Adjusted EBITDA of $16 million increased 29%, benefiting from cost management and improved plant utilization related to facility consolidation. Book-to-bill was 104% with strong Subsea product line orders for aftermarket upgrades to ROVs. Drilling and Completions provides consumable products and capital equipment for drilling, subsea, coiled tubing, wireline, and stimulation markets. Artificial Lift and Downhole segment revenue was $87 million, a 6% increase, due to higher demand for sand and flow control solutions, artificial lift products, and casing equipment. Partially offsetting the increase was delayed production equipment deliveries. Adjusted EBITDA of $22 million increased 30% from higher sales volumes and favorable product mix. Book-to-bill was 105% with strong Downhole product line orders. Artificial Lift and Downhole engineers, manufactures, and supplies products for well construction, artificial lift, and oil and natural gas processing. Earnings Conference Call FET will host its second quarter 2026 earnings conference call at 10:00 a.m. Central Time on Friday, July 31, 2026. The call will be webcast through the Investor Relations link on FET’s website at https://ir.f-e-t.com. Participants may also join the call by registering at: https://register-conf.media-server.com/register/BI77d80ed1ed354dd8bd90f7b88c154c16 A replay of the call will be available on the Investor Relations website after the completion of the call at approximately 5:00 p.m. Central Time. FET is a global manufacturing company, serving the oil, natural gas, defense, and renewable energy industries. With headquarters located in Houston, Texas, FET provides value added solutions aimed at improving the safety, efficiency, and environmental impact of our customers' operations. For more information, please visit www.f-e-t.com. Non-GAAP Financial Measures The Company presents its financial results in accordance with GAAP. However, management believes that non-GAAP measures are useful tools for evaluating the Company's overall financial performance. Not all companies define these measures in the same way. In addition, these non-GAAP financial measures are not a substitute for those prepared in accordance with GAAP and should, therefore, be considered only as a supplement. Please see the attached schedules for reconciliations between GAAP and the non-GAAP financial measures used in this press release. The company is unable to provide a reconciliation of forward-looking adjusted net income and adjusted EBITDA to GAAP net income because items that impact GAAP net income, such as restructuring charges, transaction expenses, and foreign exchange losses (gains), cannot be reasonably predicted. Forward Looking Statements and Other Legal Disclosure This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements, other than statements of historical facts, included in this press release that address activities, events or developments that the Company expects, believes or anticipates will or may occur in the future are forward-looking statements. Without limiting the generality of the foregoing, forward-looking statements contained in this press release specifically include the expectations of plans, strategies, objectives and anticipated financial and operating results of the Company, including any statement about the Company's outlook, future financial position, liquidity and capital resources, operations, performance, cash flow, acquisitions, returns, capital expenditure budgets, new product development activities, strategic investments, share repurchases, costs and other guidance included in this press release. These statements are based on certain assumptions made by the Company based on management's experience and perception of historical trends, current conditions, anticipated future developments and other factors believed to be appropriate. Such statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of the Company, which may cause actual results to differ materially from those implied or expressed by the forward-looking statements. Among other things, these include the volatility of oil and natural gas prices, oilfield development activity levels, the availability of raw materials and specialized equipment, the Company's ability to deliver backlog in a timely fashion, the availability of skilled and qualified labor, competition in the oil and natural gas industry, governmental regulation and taxation of the oil and natural gas industry, the Company's ability to implement new technologies and services, the availability and terms of capital, and uncertainties regarding environmental regulations or litigation and other legal or regulatory developments affecting the Company's business, and other important factors that could cause actual results to differ materially from those projected as described in the Company's filings with the U.S. Securities and Exchange Commission. Any forward-looking statement speaks only as of the date on which such statement is made and the Company undertakes no obligation to correct or update any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by applicable law. View source version on businesswire.com: https://www.businesswire.com/news/home/20260730243910/en/ Contacts Rob KuklaDirector of Investor [email protected]

Strong Q1 operational results: Revenue rose 8% YoY to $209M, adjusted EBITDA increased 14% to $23M and net income climbed 300%, while orders were up 10%, backlog was the highest in 11 years (up 44% YoY) and book-to-bill was 106%, with $15M of annualized cost savings realized. Raised near-term outlook: Q2 EBITDA is guided to $24–30M (midpoint ~32% above last year) and the full-year EBITDA midpoint was raised to $103M (up ~20% vs. 2025) while revenue guidance remains $800–880M and free cash flow guidance is $55–75M. Product wins and capital allocation: New offerings (Unity ROV OS, DuraLine manifold, DuraCoil 95 and rig-floor automation) are driving international orders, management repurchased ~$5M of shares, ended the quarter with $121M net debt (net leverage <1.4x) and expects leverage <1.0x by year-end with buybacks and targeted M&A as options. Interested in Forum Energy Technologies, Inc.? Here are five stocks we like better. Forum Energy Technology Shares Rise As Restructuring Progresses Forum Energy Technologies (NYSE:FET) said its first-quarter 2026 results reinforced confidence in the company’s “FET 2030” plan, pointing to year-over-year gains in revenue, EBITDA and net income, as well as continued market-share wins driven by new products and international and offshore demand. President and CEO Neal Lux said revenue rose 8% year-over-year, EBITDA increased 14%, and net income climbed 300%. Lux also highlighted higher revenue per global rig and “strong bookings,” with orders up 10% year-over-year and a book-to-bill ratio of 106%. → Corning Beats Q1 Estimates but Drops 9% on Guidance Miss “We entered the year with our highest backlog in 11 years, and we grew that backlog again,” Lux said, adding that backlog was up 44% compared to the first quarter of last year. He said structural cost-saving initiatives have delivered $15 million of annualized savings. Executive Vice President and CFO Lyle Williams reported first-quarter revenue of $209 million, near the top end of guidance. Compared to the prior quarter, he said revenue increased 3% on growth in offshore and international markets that “outpaced global rig count.” → Meta Posted Its Best Sales Growth Since 2021—So Why Did Shares Fall? Williams said international revenue rose 7%, with Canada, Europe and Latin America each posting double-digit gains, marking the third consecutive quarter in which international revenue exceeded U.S. revenue. Offshore revenue expanded 10%, driven by a 20% increase in the subsea product line as the company began executing orders secured last year. Adjusted EBITDA was $23 million, in line with guidance. Williams said cost savings were “largely offset by product mix.” Adjusted net income was $6 million, up 11%, which Williams attributed to a favorable income tax expense rate tied to geographic income mix. → Is Oracle Undervalued as Cloud Growth Accelerates? On segment performance: Drilling and Completions: Revenue was $127 million, flat sequentially. Williams said subsea rose 20% on revenue recognition for remotely operated vehicles (ROVs) and the Submarine Rescue Vehicle project, while stimulation and intervention rose 7% on demand for power ends and wireline cable. Coiled tubing revenue fell 17% due to “customer-requested delivery push outs” into the second quarter after strong U.S. sales in the prior quarter. Segment EBITDA rose 6% on cost savings and improved plant utilization tied to facility consolidations. Artificial Lift and Downhole: Revenue was $82 million, up 9% on increased sales volumes across all three product lines. Segment EBITDA was roughly flat due to product mix, timing of incentive expense and lower absorption at one facility, which Williams said should improve in coming quarters. Williams also said the company grew backlog again in the quarter, with both segments posting book-to-bill ratios above 100%. He cited higher demand for capital equipment in stimulation and intervention and drilling product lines, increased demand for wireline cables, and improving valve orders after tariff-related impacts in 2025. Lux forecast second-quarter EBITDA of $24 million to $30 million, saying results should “increase substantially” on market-share gains, backlog conversion and cost savings. At the midpoint, Lux said that would be up 32% from a year ago, with “incremental margins of 51%” and an EBITDA margin “approaching 13%.” Williams guided second-quarter revenue of $200 million to $225 million and adjusted net income of $6 million to $11 million. For the full year, the company maintained revenue guidance of $800 million to $880 million but raised the bottom end of its EBITDA outlook, resulting in an updated adjusted EBITDA range of $90 million to $95 million at the low end, and Lux said the midpoint of EBITDA guidance was raised to $103 million, up 20% versus 2025. The company guided full-year adjusted net income of $21 million to $38 million and reaffirmed free cash flow guidance of $55 million to $75 million. Lux and Williams both emphasized the outlook assumes a flat market, despite “initial indications of some increase in activity,” which Lux described as “uneven so far.” Management highlighted several recently commercialized products and initiatives. Lux said DuraCoil 95 coiled tubing for sour-service environments is “continuing to gain traction” and is active on three continents, with potential benefits in Venezuela and the Middle East if workover activity accelerates. Lux also discussed Unity, the company’s next-generation operating system for remote ROV operations, which was demonstrated at an international trade show. In the question-and-answer session, Lux said Unity is still in the early stages as the company builds field data, but interest is high and “we do have a number of Unity systems already in the backlog.” He added the platform could have applications outside oil and gas, including defense. On DuraLine, a manifold system designed for multi-well frac applications, Lux said it is “significantly safer and more efficient” than competitors and can be exported internationally. He said the company received “a significant order” for multiple systems to be deployed in Argentina this year. Asked about efficiency, Lux said the DuraLine connection enables faster rig-up and rig-down, and allows quicker pump swaps than traditional manifolds. He characterized the pull-through opportunity as roughly “80/20 on capital versus recurring,” citing items such as check valves and hose replacements. Lux also highlighted patent-pending rig floor automation software for the FR120 Iron Roughneck to automate drill pipe make-up and break-out. Lux said the software can reduce non-productive time and “increase drilling efficiency by 30%,” and will be packaged with new units and sold as upgrades. In power generation and data center markets, Lux said the company has seen increased interest in Global Heat Transfer cooling solutions and has developed a new stationary power cooling solution. Responding to questions, Lux said the company is actively quoting the new permanent system and building an opportunity queue but “do[es]n’t have orders for that system yet.” He also noted the company previously offered a mobile data-center cooling system called Powertron. Lux said employees in the Middle East were safe and there was no facility damage, though the company experienced disruptions that slightly affected logistics and freight costs. He said the company was still able to increase revenue in the Middle East during the quarter, and management was not forecasting a material negative impact. Lux noted Middle East revenue represents about 10% of total revenue. Lux also described the conflict as a potential medium- to longer-term tailwind for the industry, citing disrupted oil and gas supply for “62 days and counting,” which could reduce global inventories and spur investment. He referenced analyst suggestions of a prolonged upcycle beginning later in 2026 or early 2027 and connected that to the “growth market scenario” in the FET 2030 vision. On Venezuela, Lux told analysts the company is seeing increased demand for short-cycle activity products such as coiled tubing and wireline, and is also exploring longer-term infrastructure-related opportunities including “Coiled Line Pipe” and potentially valves. Williams said first-quarter free cash flow was $1 million, consistent with guidance, and reiterated that cash flow is typically back-half weighted. He said the company repurchased nearly 93,000 shares for about $5 million at an average price of $49 per share. The company also paid $9 million for withholding taxes tied to stock-based compensation to avoid issuing roughly 180,000 shares, which Williams said benefited shareholders. The company ended the quarter with net debt of $121 million and net leverage “under 1.4 times,” with Williams expecting net leverage to decline to under 1.0x by year-end. Liquidity was $91 million, including $54 million available under the revolving credit facility. Williams said Forum extended its credit facility maturity to February 2031 with improved pricing and greater letters-of-credit capacity. On capital allocation, Williams said the company views additional net leverage reduction as “dry powder” for strategic investments, including acquisitions and share repurchases. He said bonds allow total repurchases of around $30 million this year, and that buybacks are expected to be back-end weighted in line with free cash flow. Management reiterated an M&A framework focused on differentiated products in targeted markets and transactions that are accretive to per-share metrics, while noting share repurchases remain an alternative use of capital. Forum Energy Technologies Inc is a global provider of advanced products and services to the oil and gas industry. The company's offerings span the full lifecycle of exploration and production, including drilling, well construction, completion and production, and subsea operations. Key product lines include premium drill bits, downhole drilling motors, directional drilling tools, subsea umbilicals, and pressure control equipment, complemented by field service support and engineered solutions for complex projects. Established through the merger of Forum Oilfield Technologies, Triton Group, Global Energy Group, and Allen International in 2010, Forum Energy Technologies has built a diversified technology portfolio designed to meet evolving industry requirements. The article "Forum Energy Technologies Q1 Earnings Call Highlights" was originally published by MarketBeat.

This article first appeared on GuruFocus. Release Date: May 01, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Forum Energy Technologies Inc (NYSE:FET) reported an 8% increase in revenue, a 14% rise in EBITDA, and a 300% surge in net income year-over-year. The company achieved a book-to-bill ratio of 106% and entered the year with its highest backlog in 11 years, which grew by 44% compared to the previous year. FET's structural cost-saving initiatives resulted in $15 million of annualized savings, enhancing organizational efficiency. The company extended its credit facilities' maturity to 2031, strengthening its balance sheet and providing financial flexibility. FET is actively gaining market share through innovation, with new products like DuraCoil 95 and Unity ROV system gaining traction globally. Coil tubing revenue decreased by 17% due to customer-requested delivery pushouts into the second quarter. The subsea product line, while growing, typically has lower contribution margins due to pass-through material and electronics costs. The company experienced some disruptions in the Middle East due to logistics and freight costs, although these were mitigated. Operating cash flow in Q1 was lower than the previous two years, attributed to timing issues with receivables collection. Despite strong results, the equity market reaction was muted, reflecting high volatility in the company's stock. Warning! GuruFocus has detected 3 Warning Signs with FET. Is FET fairly valued? Test your thesis with our free DCF calculator. Q: Neil, with respect to the Unity ROV system and the trade show, are you seeing demand for that product outside of traditional energy? And then secondly, if we think about Unity and the cooling systems you all have, are there orders for those systems that are within the backlog or are you working on that? A: Neil Lux, CEO: Starting with Unity, it's still a fairly new system, and we're gathering more field data. We do see potential applications outside of oil and gas, such as defense. We have several Unity systems in the backlog and expect to explore other applications as we gain more experience. Regarding cooling systems, we have a new stationary design that we are actively quoting, but we don't have orders yet. Q: Can you comment, Neil or Lyle, on what the margin profile looks like in the backlog? A: Neil Lux, CEO: Our innovative products generally have higher margins than our standard products. About 11% of our backlog consists of new innovations, which should result in higher average margins. Lyle Williams, CFO: Our subsea business, which includes a lot of pass-through materials, tends to have lower margins, but our other products are coming in at higher margins. Q: With respect to the Middle East and Qatar's LNG, are there conversations underway with customers in the Middle East that would increase demand for FET's business? A: Neil Lux, CEO: It's early in the rebuilding discussions, but we are staying close with our customers. We increased revenue in the Middle East during the quarter and see opportunities in Venezuela, especially for short-cycle activities like coil tubing and wireline. Q: Neil, in terms of the guidance raised this early in the year, what led you to that decision? Was the strength in orders the major contributor? A: Neil Lux, CEO: Having a book-to-bill over 100% gives us confidence. Orders like Duraline for Argentina and strength in Canada, particularly with VeriPerm, contributed significantly. While we haven't assumed an increase in activity, we are seeing initial indications of some increase. Q: Have we seen the full benefit of your cost reductions now with the plan consolidation, or can we expect more to contribute to margins as the year goes on? A: Neil Lux, CEO: The Q2 guidance fully assumes all of our cost reductions. We had some operational challenges in Q1 due to facility consolidations, but we feel confident about executing cost savings in Q2. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Image source: The Motley Fool. May 1, 2026 President and Chief Executive Officer — Neal A. Lux Chief Financial Officer — David Lyle Williams Director of Investor Relations — Rob Kukla Need a quote from a Motley Fool analyst? Email [email protected] Operator: Good morning, ladies and gentlemen, and welcome to the Forum Energy Technologies, Inc. First Quarter 2026 Earnings Conference Call. My name is Daniel, and I will be your coordinator for today's call. There is a process for entering the question and answer queue. To ask a question during the session, you will need to press 1-1 on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press 1-1 again. At this time, all participants are in a listen-only mode, and all lines have been placed on mute to prevent any background noise. This conference call is being recorded for replay purposes and will be available on the company's website. I will now turn the conference over to Rob Kukla, Director of Investor Relations. Please proceed, sir. Rob Kukla: Thank you, Daniel. Good morning, everyone, and welcome to Forum Energy Technologies, Inc.'s First Quarter 2026 Earnings Conference Call. With me today are Neal A. Lux, our President and Chief Executive Officer, and David Lyle Williams, our Chief Financial Officer. Yesterday, we issued our earnings release, which is available on our website. Today, we are relying on federal safe harbor protections for forward-looking statements. Listeners are cautioned that our remarks today will contain information other than historical information. These remarks should be considered in the context of all factors that affect our business, including those disclosed in Forum Energy Technologies, Inc.'s Form 10-Ks and other SEC filings. Finally, management's statements may include non-GAAP financial measures. For reconciliation of these measures, please refer to our earnings release and website. During today's call, all statements related to EBITDA refer to adjusted EBITDA. Unless otherwise noted, all comparisons are first quarter 2026 to fourth quarter 2025. I will now turn the call over to Neal. Neal A. Lux: Thank you, Rob, and good morning, everyone. Our first quarter results reinforced our confidence in the path we presented with FET 2030. Year over year, we increased revenue 8%, EBITDA 14%, and net income 300%. The execution of our beat-the-market strategy drove these results. Impressively, we grew revenue per global rig 12% from a year ago, and positioned our company for future gains with strong bookings. Orders were up 10% year over year with a book-to-bill of 106%. We entered the year with our highest backlog in eleven years, and we grew that backlog again. Compared to the first quarter of last year, our backlog is up 44%. Also, following the completion of our structural cost saving initiatives, we are now a more efficient organization. These efforts have achieved $15 million of annualized savings. In addition, we continued our share repurchase program and strengthened the balance sheet by extending our credit facility's maturity to 2031. Overall, this was the kind of start we wanted to see, providing momentum into the second quarter and beyond. Looking ahead, our results should increase substantially, driven by market share gains, backlog conversion, and cost savings. We are forecasting second quarter EBITDA of between $24 million and $30 million, which at the midpoint is up 32% from a year ago. These results would deliver incremental margins of 51% with EBITDA margin approaching 13%. This sequential improvement is driven solely by the execution of our plan. Turning to the full year, we are raising the midpoint of our EBITDA guidance to $103 million, up 20% compared with 2025. Importantly, while we are seeing signs of increased activity, which is consistent with some analysts' expectations, our forecast conservatively assumes a flat market. Should the market pick up, I would expect to see further upside to our forecast. During the first quarter, we continued gaining market share through innovation and new customer adoption. This is a key part of our strategy, so let me provide an update on a few products we have recently commercialized. First, DuraCoil 95, coil tubing for sour service environments, is continuing to gain traction and is now active on three continents. This is an ideal product for Venezuela and the Middle East, especially if workover activity accelerates to bring production back online. Another innovation I want to mention is Unity, our next-generation operating system for remote ROV operations. We recently had the opportunity to showcase this technology at a large international trade show. In a real-time demonstration, our customers were able to control an ROV positioned hundreds of miles away from a terminal in our booth. It was a powerful demonstration of Unity's capabilities and has ignited interest in our product. The next product I want to highlight is DuraLine, our manifold system for multi-well frac applications. Compared to our competition, DuraLine is significantly safer and more efficient. Also, it is a great example of technology developed for U.S. shale applications that can be exported to international locations. In the first quarter, we received a significant order for multiple systems to be deployed in Argentina this year. Another innovative area for Forum Energy Technologies, Inc. is rig floor automation. We have developed patent-pending software for the FR-120 Iron Roughneck that automates the drill pipe makeup and breakout process with the push of a button. Our solution dramatically simplifies rig floor operations, reduces nonproductive time, and increases drilling efficiency by 30%. This software will be packaged with new Iron Roughnecks and sold as an upgrade to existing ones. I am very excited about this development. Shifting to the power generation and data center market, we have seen increased interest in the cooling solutions offered by our Global Heat Transfer product family. Based on customer feedback, we have developed a stationary power cooling solution. This new design gives us an opportunity to address a bigger part of the market and, since its introduction, we have developed a strong commercial funnel. These innovations are great examples of how our product pipeline is supporting both near-term share gains and the long-term ambitions of FET 2030. Shifting to the Middle East conflict and its impact, first and foremost, I am thankful all our employees in the region are safe. That is our primary concern. Also, operationally, we have not suffered any facility damage. We have experienced some disruptions that are having a slight impact on our business, particularly around logistics and freight costs. However, our teams did an excellent job finding creative solutions to these challenges, and we were able to increase revenue in the Middle East during the quarter. While uncertainty remains high, we are not forecasting any material net negative impact from the conflict. For context, Middle East revenue is only 10% of our total, limiting the company's exposure. At the same time, this conflict is creating medium to longer-term tailwinds for our industry. A significant portion of the world's oil and gas supply has been disrupted for 62 days and counting. Even if oil shipments through the Strait of Hormuz resume quickly, global oil inventories will be meaningfully reduced. Barring a material downturn in global demand, we expect investment in oil and gas production to increase over time to replace depleted inventories and support energy security. Some analysts have suggested that our industry will experience a prolonged upcycle beginning later this year or early 2027. This upcycle aligns with the growth market scenario of our FET 2030 vision. Under this scenario, our addressable markets grow at a rate of 9% annually and we expand our market share to 22% by 2030. The combination of market expansion and share gains doubles revenue and supports our near-term financial outlook. I will now turn the call over to Lyle for the financial results. David Lyle Williams: Thank you, Neal. Good morning. I will begin with first quarter results and our guidance, then shift to a discussion of cash flow and our capital allocation strategy. First quarter revenue of $209 million came in near the top end of our guidance. Growth in offshore and international markets led the revenue increase of 3%, outpacing global rig count. Our international revenue was up 7%, with Canada, Europe, and Latin America each delivering double-digit gains. This is the third consecutive quarter when international exceeded U.S. revenue. And offshore revenue expanded 10%, driven by a 20% increase in our Subsea product line as the team begins to execute orders secured last year. Adjusted EBITDA for the quarter was $23 million, in line with our guidance, as cost savings benefits were largely offset by product mix. Adjusted net income of $6 million increased 11% on a favorable income tax expense rate that benefited from geographic income mix. We grew backlog again in the first quarter, even after very strong bookings in 2025. Both segments posted a book-to-bill ratio greater than 100%. We saw higher demand for capital equipment in the Stimulation and Intervention and the Drilling product lines, and increased demand for wireline cables. Valve orders increased nicely, bouncing back from tariff-related impacts throughout 2025. Let me continue with additional color on our segment results. Drilling and Completions revenue was $127 million, flat with the previous quarter. The Subsea product line increased 20% as we recognized revenue on ROVs and the rescue submarine project. The Stimulation and Intervention product line increased 7%, supported by power end and wireline cable demand. And to note, our Quality Wireline product family set a new record this quarter in revenue and in greaseless cable sales. Coiled tubing revenue was down 17%, coming off strong U.S. sales last quarter and due to customer-requested delivery pushouts into the second quarter. Despite flat revenue, segment EBITDA was up 6%, benefiting from cost savings and improved plant utilization related to our facility consolidations. Artificial Lift and Downhole revenue was $82 million, up 9% with increased sales volumes across all three product lines. EBITDA was roughly flat, reflecting a combination of product mix, timing of incentive expense, and lower absorption at one facility, which we expect to improve in the coming quarters. Consolidated free cash flow was $1 million, consistent with our guidance. As a reminder, our free cash flow is typically back-half weighted; for example, roughly two-thirds of our free cash flow was generated in the second half of 2025. Despite the seasonally lower free cash flow, we still remained active on share buybacks. We repurchased almost 93 thousand shares for approximately $5 million under our share repurchase authorization. These purchases averaged $49 per share, about 20% lower than our stock price at yesterday's close. In addition, we paid $9 million for withholding taxes associated with our stock-based compensation program, avoiding the issuance of roughly 180 thousand shares and ultimately benefiting our shareholders. These payments, along with transaction costs associated with the credit facility amendment, resulted in a modest and temporary increase in net debt. We ended the quarter with net debt of $121 million, with a net leverage ratio still at a comfortable level of under 1.4x. While this is higher than where we ended last year, we expect net leverage to decline to under 1.0x by the end of the year. Liquidity of $91 million remains strong, with $54 million available under our revolving credit facility. During the quarter, we extended our credit facility maturity to February 2031 with improved pricing and greater letters of credit capacity. This amendment, combined with our strong balance sheet, provides significant flexibility for Forum Energy Technologies, Inc. to fund strategic initiatives, including long-term debt retirement, organic growth, and acquisitions. Now turning to our guidance. For the second quarter, as Neal mentioned earlier, our results should increase substantially, driven primarily by backlog conversion, cost savings, and market share gains. We are forecasting revenue between $202 million and $225 million and EBITDA between $24 million and $30 million, which at the midpoints are up 6% and 32%, respectively, from a year ago. Adjusted net income expected for the second quarter is between $6 million and $11 million. Our full year guidance issued in February assumed relatively flat market activity compared to 2025. Now, with strong first quarter results and increased expectations for the second quarter, we are raising the bottom end of our EBITDA guidance range from $90 million to $95 million. We are maintaining our revenue guidance of $800 million to $880 million, and for adjusted net income we are guiding between $21 million and $38 million. In addition, we reaffirm our full year free cash flow guidance of $55 million to $75 million, as we remain confident in our ability to convert approximately 65% of EBITDA into free cash flow. Let me conclude with our capital allocation expectations. As we discussed last quarter, our balance sheet is in great shape. We consider any further net leverage reduction as dry powder for incremental strategic investments, including acquisitions and share repurchases. With our M&A framework, we seek to acquire companies with differentiated products competing in targeted markets, at valuations that would be accretive to Forum Energy Technologies, Inc. per-share metrics. And we compare these acquisitions with repurchasing Forum Energy Technologies, Inc. shares. This year, our bonds allow total repurchases of around $30 million as long as our net leverage remains below 1.5x. We believe Forum Energy Technologies, Inc. remains a compelling investment. With that, I will turn the call back to Neal for closing remarks. Neal A. Lux: Thank you, Lyle. Over the last few years, we have implemented a strategy to make Forum Energy Technologies, Inc. a better and stronger company. We are gaining share through commercial excellence and innovation. We are leveraging our global footprint, delivering our solutions to customers around the world. We are creating significant value for our shareholders, and we have been successful despite market headwinds. Now we may be closer to finally having a market tailwind that can supercharge our efforts going forward. Thank you for joining us today. Daniel, please take the first question. Operator: Star 1-1 on your telephone and wait for your name to be announced. Our first question comes from Jeffrey Woolf Robertson with Water Tower Research. Your line is open. Jeffrey Woolf Robertson: Thank you. Good morning. Neal, with respect to the Unity ROV system and the trade show, are you seeing demand for that product outside of traditional energy? And then secondly, if we think about Unity and the cooling systems you all have, are there orders for those systems that are in the backlog, or are you working on that? Neal A. Lux: Good question. So, starting with Unity first, Jeff, it is still a fairly new system. We are gathering more and more field data as well as understanding how much it benefits our customers, so it is early stages there. I do think it would have an application outside of oil and gas for remote control of an ROV. I think the interest is high, and we do have a number of Unity systems already in the backlog that will continue to add to what we have already delivered. As we build that field experience, we will then look at other applications outside oil and gas; defense would be a great application as well. On our cooling systems, we did not mention in the call, but we have previously had a cooling system that is mobile for data centers that we call Powertron. The system I mentioned in the script is a new design that is stationary, so it is not mobile. This is brand new, one that we are quoting actively, and we are building up a strong opportunity queue. We do not have orders for that system yet, but all indications are we have a great product and would expect orders going forward. Jeffrey Woolf Robertson: Can you comment, Neal or Lyle, on what the margin profile looks like in the backlog? Neal A. Lux: With the new products and innovations, generally our innovative products have higher margins than our standard overall margin. The innovations we developed are addressing specific customer needs, and so we are able to get more value out of that. As we talked about, our backlog coming into the year, about 11% was new innovations or new products that we developed recently, so I would think overall our average margin would be higher because of that. Lyle, maybe a little color to add to that. David Lyle Williams: Last year, we booked a large amount of orders for Subsea. Their book-to-bill was basically off the charts in a combination of defense and traditional oil and gas, ROVs, and the rescue submarine. Typically, we see our Subsea business with slightly lower contribution margins—there is a lot of pass-through material and electronics, etc., that go through on those Subsea orders—that tends to pull the average margin down. So I would say the Subsea portion of backlog, which is meaningful, is a little bit lower. But as Neal mentioned, our other products we are putting through are coming in at higher margins. Jeffrey Woolf Robertson: And if I can have one more. With respect to the Middle East and Qatar's LNG—part of it has gone offline—are there conversations underway with customers in the Middle East that would increase demand for Forum Energy Technologies, Inc.'s business as the oil and gas producers maybe look to diversify their production capacity and maybe put a bigger emphasis on developing their own natural gas for internal consumption? Neal A. Lux: I think it is maybe early on for that rebuilding discussion, Jeff. We are staying close with our customers. As we mentioned, we did increase revenue in the Middle East during the quarter. One area that we did not cover specifically was Venezuela. We are seeing an increase there in demand, especially for our short-cycle, activity-based products like coiled tubing and wireline. As we get farther from the conflict, there will absolutely be an opportunity in the Middle East. Interestingly, we are finding some nice opportunities already in Venezuela. Operator: Thank you. Our next question comes from Stephen Michael Ferazani with Sidoti. Your line is open. Stephen Michael Ferazani: Good morning, Neal. Good morning, Lyle. Appreciate all the detail on the call. In terms of the guidance raised this early in the year—obviously, you would not do it without confidence—just trying to get a better sense of the components that led you to that decision. Covered it a little bit, but to me, the surprise here was the strength in orders, given the fact that we have not seen a pickup in North America yet, given the conflict in the Middle East, and given you would assume a lot more uncertainty on behalf of customers. Were you surprised? Was that the major contributor? Were there other factors in the guidance raise? We were certainly surprised by the strength in the order book for Q1. Neal A. Lux: Having a book-to-bill over 100% does give you a lot of confidence when you look out a quarter. That helped. Some of the orders we booked—I mentioned DuraLine for Argentina—that is one we worked on for a long time and got to the finish line in Q1, which helps. Another area where we are seeing great strength is in Canada with the Veraperm product line; they are delivering great results. With oil prices up, that is an area where we are going to see more investments. So Veraperm being strong, as well as the visibility from our backlog coming into the quarter, gave us a lot of confidence in increasing guidance. Again, we are not assuming yet an increase in overall activity; we are keeping our assumptions flat. But we are getting initial indications of some increase in activity. It is uneven so far, so I do not want to call it a trend. If activity does increase, we will be aggressive in following it up. Stephen Michael Ferazani: In terms of the strength in Q1, it sounds like you were also impacted by some delivery pushouts. Given the higher Q2 guidance, fair to assume those deliveries were either completed or will be for sure completed in Q2? Neal A. Lux: Yes. Specifically coiled tubing, where customers were a little unsure at the end of the quarter and just waited. That is an area where we are now seeing customers accelerate, which is one of the initial indications we have received. Stephen Michael Ferazani: Have we seen the full benefit of your cost reductions now with the plant consolidation? Or can we expect more to contribute to margins as the year goes on? Neal A. Lux: The Q2 guidance fully assumes all of our cost reductions. We still had some actions being completed in Q1, and we also had some operational challenges you always see when consolidating facilities. But going forward in Q2, we feel really good about the cost savings and our ability to execute. Stephen Michael Ferazani: That is helpful. And, Lyle, I do have to circle around on operating cash flow. Clearly, Q1 is always the lowest and you had pointed it out going into this quarter. That being said, cash flow was lower than the previous two years. Looking through the numbers, it looks like it is a timing issue with receivables collection as the delta between the last two years. Is that fair? More timing than anything? And there is no reason to think you are not still on track for full year cash flow? David Lyle Williams: Yes, Steve. The seasonality is driven by incentive comp payments and property tax payments that go out in Q1. That is the big drag from a working capital perspective. Beyond that, it is really timing. Quarter to quarter we see movements in DSOs based on project timing for our bigger projects and shipment timing. We did see a little bump up in DSOs in the first quarter; we think that will unwind in the second and third quarter. So there was some movement in receivables and payables, but the big driver for Q1 is those annual payments we make every year. We feel like we are on track for the full year, Steve. Stephen Michael Ferazani: In terms of the use of it, any change to your buyback strategy? David Lyle Williams: No. We like the buyback plan. We highlighted about $5 million bought back this year. Total capacity for the year would be about $30 million. We do expect that to be back-end weighted, keeping it somewhat in line with how our free cash flow comes in. With our free cash flow yield over 10%, it is an attractive investment for us to consider. Stephen Michael Ferazani: Great. Thanks, Neal. Thanks, Lyle. Operator: Thank you. Our next question comes from Daniel Ray Pickering with Pickering Energy Partners. Your line is open. Daniel Ray Pickering: Morning, guys. I think Lyle mentioned—or maybe it was Neal, I cannot remember—you talked about FET 2030 and you threw out some numbers. Just want to confirm what I heard. I think I heard doubling of revenues to 1.6 billion and EBITDA quadrupling to, call it, 400 million. I just want to confirm that. It implies an EBITDA margin of about 25%. I was hoping you could give us some perspective. I realize that is aspirational and forward-looking, etc. How do you think about pricing improvements? And can you put that 25% margin level in context with prior strong cycle periods? Neal A. Lux: Those numbers are based compared to 2025, when we delivered around $85 million of EBITDA. The revenue path is to 1.6 billion. We see two drivers: market growth and share gains driving revenue, and then operating leverage delivering roughly 30% incremental margins on that revenue increase. That is how we get the increase in overall margin. As you play it out, we see around 20% EBITDA margins once we have that kind of revenue growth on our fixed cost base. We also look at revenue per rig: in the U.S., we are around $700 thousand per rig annually; internationally, it is closer to $300 thousand. The ability for us to export technology—whether DuraLine manifolds, Multi-Lift solutions, DSP life extenders or protectors going into the Middle East—is a great opportunity. If international revenue per rig gets closer to the U.S., that 1.6 billion target is aspirational but feels like a great target for us to achieve. Daniel Ray Pickering: Thank you. Neal, you mentioned Venezuela. What are you seeing there? Is it inquiries about what you could do if companies go in there? Are you seeing companies that are already there asking for more stuff? Is this a Q2 revenue impact? Is it later in the year into 2027 revenue impact? Neal A. Lux: It is both. We are receiving orders and delivering material for customers who are already in country looking for our products so they can get back to work. We are also in early stages looking at more infrastructure-type sales—coil line pipe, things like that—potentially valves going into Venezuela to help rebuild infrastructure. That would be longer term. Historically, Venezuela was a great market for many of our products, and getting back in there creates a lot of opportunity for us. Daniel Ray Pickering: You talked about Argentina and the DuraLine order that you had been working on for a while. Is that going in with a pressure pumper that has equipment there already, or is it new capacity, new equipment moving in that you are going along with? Neal A. Lux: I am not positive if the pumps are in country yet or not, but I believe that is additional fleets being added to get the work done. Daniel Ray Pickering: As we bring it back to the U.S., can you talk a little bit about pricing behavior? Is it a flat pricing environment? Are we seeing any upward bias anywhere? Or is it kind of a steady market right now? Neal A. Lux: I would say it is steady right now, Dan. We are getting interest; the phone is ringing; inquiries are coming. We have had a few customers ask to receive material earlier than originally planned, but it is not a boom yet. I do not see a pricing impact in Q2 beyond passing through any freight increases, diesel surcharges, or tariffs. Real pricing increases—we have not approached that yet. We have some capacity, and some of our competitors have some capacity at least initially. As we go along in the cycle, that is absolutely something we are looking for. Operator: Thank you. Our next question comes from John Daniel with Daniel Energy Partners. Your line is open. John Daniel: Hey, Neal. My first question is with the GHT product line. Can you speak to what you are seeing from the North American frac companies—replacement orders and inquiries? Neal A. Lux: We have seen an uptick in inquiries. It is not a trend yet, John, but something we are monitoring. We are still seeing more demand right now for our data center cooling opportunities than for frac. That said, even going into the year, we were a little surprised with a few capital orders on the drilling side and on the pressure pumping side, where customers were pulling the trigger even before the recent oil price increase. I am cautiously optimistic that as we get farther in the cycle and activity picks up—and given how old some of the equipment is in the field—we could have an opportunity to add some new capital for our customers. John Daniel: And my follow-up: on DuraLine, it was characterized as more efficient. Can you elaborate on what makes it more efficient? Neal A. Lux: It is our DuraLine connection. We are able to rig up and rig down significantly faster. We also utilize high-pressure hoses and cranes to move those hoses. If you need to pull out a pump, you can do that much faster than with a traditional manifold. We are seeing a lot of interest from large pressure pumpers who want to be best in class, and uptake has been good. John Daniel: Once you sell those systems, what type of consumables go along with it? What is the repeat revenue opportunity? Neal A. Lux: The whole system is a pretty big order initially, but ongoing pull-through would include check valves, hose replacements, different types of bearings, and iron. Call it 80/20 on capital versus recurring. John Daniel: Final question. I do not know how many of the bearings, valves, and fittings are sourced from international markets, but do you see any potential supply constraints as an eventual Middle East rebuild comes—supply that you thought you could get gets diverted to a higher-priced market? Is that a risk? Neal A. Lux: We have not seen anything like that. We feel good about our supply chain, but it is something we will watch. Operator: Thank you. Our next question comes from Eric Carlson. Your line is open. Eric Carlson: Hey, good morning. Good quarter again. Last time we talked, oil prices were probably lower. In the 2030 plan you presented, and from a physical perspective, we are likely to lose over a billion barrels of supply from inventories. Your base case in that plan has been a no-growth scenario and then the 2030 growth scenario. Can you provide a bit more context on your confidence in outcomes given we probably need to build a lot of supply back into the market? Neal A. Lux: We agree. Taking a billion barrels of oil out of inventory has to be replaced. Countries around the world will have to ask themselves how much inventory they should have; I would imagine it is going to be more than what they had coming into the conflict. That is even more demand on oil production. This fits really well with our growth scenario. As the buildup comes in oil—and data centers are still out there, and natural gas demand is still going to grow—that biases us up toward our growth outlook where we could double revenue because our markets are growing and we are taking share. Our key innovations are driving growth, and adding the need to rebuild and refill creates a great opportunity for us. Eric Carlson: In that context of headline volatility—commodity volatility has been high, your own equity volatility is relatively high too—pretty good results today, but equity market reaction is what it is. In the context of your capital returns, do you look at volatility as an opportunity to buy more of what you already own? Does that change how you think about buybacks versus acquisitions? The organic opportunity is massive if the 2030 growth scenario plays out. And on the M&A market—potential targets, size of target, and bid-ask spread today versus a quarter ago? Neal A. Lux: Our free cash flow yield is still around 10%—higher than our peers and the average small cap—so we are a great value, especially with our growth outlook. For acquisitions, our criteria are clear: differentiated products, few competitors, great financial profile, and accretive to free cash flow per share. Lyle and his team have developed a solid pipeline. There are opportunities out there, but we will be incredibly selective, especially given our free cash flow yield. David Lyle Williams: Because of the breadth of our product portfolio, we have a lot of shots on goal around products that could be strategically beneficial. But the criteria are the same: differentiated technology, targeted markets, and accretive to our per-share metrics. We can be conservative and take our time because we have a good alternative investment in our own shares. It is an interesting market with a lot of opportunities to evaluate, and we have a compelling base case if we cannot find something even more compelling. Eric Carlson: On valuations, the Veraperm deal was done under 4x EBITDA with a really impressive free cash flow multiple. What does the market look like today versus a quarter ago? Seller expectations? David Lyle Williams: Public company valuations have increased year to date pretty meaningfully—ours included—and you would expect sellers to try to take advantage of that. That said, we have seen deals getting done still in the range of where we acquired Veraperm. Our expectation is those deal values have not changed a lot in the last 90 days. Valuation volatility in public equities can be high, so we will be appropriately conservative, making sure any moves are very accretive to our story. Eric Carlson: On target size, Veraperm was large and transformative. What is the general range you have been thinking about if you can get something at the right price? David Lyle Williams: We do have a broad dispersion of potential targets. Key financially is to keep our balance sheet very strong. We are not going to risk the balance sheet by doing a bigger deal that stretches us. Our stock being a very good value also brackets the size of deals we might do. The range is broad, and it depends on what we can bring across the line that meets our criteria. Eric Carlson: Seller type—privately held companies like Veraperm, carve-outs from publics, or something else? David Lyle Williams: We are seeing it all. Quite a few private equity-held businesses that are long in the tooth, smaller family-owned businesses considering next-generation and estate planning questions, and other structures. Over our history, Forum Energy Technologies, Inc. has participated in a lot of different kinds of deals. It is definitely an interesting time. Eric Carlson: Great. That is all I have. Thanks. Neal A. Lux: Thanks, Eric. Operator: Thank you. I am showing no further questions at this time. I would now like to turn it back to Neal A. Lux for closing remarks. Neal A. Lux: Thank you for your support and participation on today's call. We look forward to our next meeting in July to discuss Forum Energy Technologies, Inc.'s second quarter 2026 results. Thank you. Operator: This concludes today's conference call. Thank you for participating. You may now disconnect. Before you buy stock in Forum Energy Technologies, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Forum Energy Technologies wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $504,832!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,223,471!* Now, it’s worth noting Stock Advisor’s total average return is 971% — a market-crushing outperformance compared to 202% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. See the 10 stocks » *Stock Advisor returns as of May 1, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. FET Q1 2026 Earnings Transcript was originally published by The Motley Fool

Performance beat was driven by a 'beat-the-market' strategy that increased revenue per global rig by 12% year-over-year despite a flat market environment. Operational efficiency improved significantly following the completion of structural cost-saving initiatives, yielding $15 million in annualized savings. Market share gains are being fueled by the commercialization of high-margin innovations, including DuraCoil 95 for sour service and the Unity remote ROV operating system. International revenue exceeded U.S. revenue for the third consecutive quarter, with double-digit gains in Canada, Europe, and Latin America. The company successfully navigated Middle East logistics and freight disruptions caused by regional conflict, actually increasing revenue in the region during the quarter. Strategic positioning in the power generation and data center cooling markets is expanding via new stationary cooling solutions from the Global Heat Transfer product line. Second quarter EBITDA guidance of $24 million to $30 million assumes substantial growth driven by backlog conversion, cost savings, and market share gains. Full-year EBITDA guidance was raised to a midpoint of $103 million, conservatively assuming a flat market despite signs of increased activity. The FET 2030 'growth market' scenario targets doubling revenue to $1.6 billion by expanding addressable market share to 22% and leveraging 30% incremental margins. Management noted that some analysts suggest the industry will experience a prolonged upcycle beginning later this year or early 2027, as investment increases to replace depleted global oil inventories and support energy security. Free cash flow generation is expected to remain back-half weighted, with a full-year target of $55 million to $75 million representing a 65% EBITDA conversion rate. Backlog reached its highest level in eleven years, up 44% year-over-year, providing high visibility for upcoming quarters. The credit facility maturity was extended to 2031, improving pricing and increasing letter of credit capacity to support international growth. Share repurchases totaled approximately 93 thousand shares at an average price of $49, with the company's bonds allowing up to $30 million in total repurchases for the year as long as net leverage remains below 1.5x. Net leverage is projected to decline to under 1.0x by year-end, down from the current 1.4x, as seasonal cash flow improves. Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Management confirmed that the Unity ROV system has potential applications in defense and other remote-control sectors beyond oil and gas. The new stationary cooling solution for data centers is currently in the quoting phase with a strong commercial funnel, though no orders have been booked yet. Innovative products in the backlog generally carry higher margins than standard offerings, though the large Subsea component has slightly lower contribution margins due to pass-through materials. New innovations and products developed recently represent approximately 11% of the total backlog. Venezuela is showing increased demand for short-cycle products like coiled tubing and wireline to bring production back online. A significant order for DuraLine manifold systems was secured for deployment in Argentina to support additional frac fleets. Management remains 'incredibly selective' regarding acquisitions, comparing potential deals against the high free cash flow yield of repurchasing their own shares. The M&A pipeline includes private equity-held businesses and family-owned firms, with target valuations remaining steady despite public equity volatility. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here.