Full Year 2024 Highlights and 2025 Guidance
- Revenue: $816 million, a 10% year-over-year
increase
- Orders: $780 million and book-to-bill ratio of 96%
- Net loss: $135 million
- Adjusted EBITDA: $100 million, a 49% increase from
2023
- Operating cash flow and free cash flow: $92 million and $105
million, respectively
- Shareholder return program: $2 million repurchased in
January 2025
- 2025 adjusted EBITDA guidance: $85 - $105 million
Forum Energy Technologies, Inc. (NYSE: FET) today announced
fourth quarter 2024 revenue of $201 million and orders of $190
million. Fourth quarter net loss of $104 million includes a
non-cash, pre-tax intangible asset impairment of $119 million and
an $11 million tax valuation allowance release. Net loss for 2024
was $135 million, or $11.00 per diluted share. Adjusted net loss
for the quarter was $6 million and $11 million for 2024.1
Neal Lux, President and Chief Executive Officer, remarked, “2024
was a fantastic year for FET. We began by closing the Variperm
acquisition, which contributed meaningfully to our financial
results. Consolidated revenue was up $78 million and adjusted
EBITDA increased $33 million, resulting in a 42% incremental
margin. EBITDA margin increased by over 300 basis points to 12%.
This strong growth and our efficient working capital management
generated free cash flow of $105 million, the highest since
2015.
“We ended the year refinancing our long-term debt, solidifying
our balance sheet, and providing flexibility to return capital to
shareholders. In December, we announced a $75 million share
repurchase authorization and began executing this program in
January. Going forward, we expect to allocate 50% of our free cash
flow to net debt reduction, with the remainder to strategic
investments, including share repurchases. With our confidence in
the long-term outlook and a free cash flow yield well above our
peers, we are unlikely to find a better investment than FET
shares.
“During 2024, we implemented our “Beat the Market” strategy to
grow profitable market share by focusing on niche markets,
delivering innovative solutions, and leveraging our global
manufacturing footprint. This strategy, combined with the Variperm
acquisition, led to 15% market share growth as measured by revenue
per global rig. With continued market share gains and a favorable
long-term energy investment climate, FET is well positioned to
increase revenue and free cash flow over time.
“In the near term, commodity prices remain range bound due to
excess production capacity and slower demand growth. We expect
global drilling and completion activity to be down 2% to 5% in
2025. Our forecast assumes we overcome most, if not all, of the
activity decline through market share gains. Therefore, full year
2025 adjusted EBITDA and free cash flow guidance ranges are $85 to
$105 million and $40 to $60 million, respectively.”
_____________________________
1 See Tables 1-6 for a reconciliation of
GAAP to non-GAAP financial information, including a breakdown of
adjusting items.
Segment Results (unless
otherwise noted, comparisons are fourth quarter 2024 versus third
quarter 2024)
Drilling and Completions segment revenue was $111 million, a 10%
decrease, primarily related to lower capital equipment, wireline
cable and coiled tubing sales due to the decline in U.S.
completions activity. Orders were $103 million, or a book-to-bill
ratio of 93%, on lower orders for drilling and stimulation-related
capital equipment. Segment adjusted EBITDA was $10 million, a 34%
decrease, resulting primarily from lower revenue and unfavorable
product mix. The Drilling and Completions segment provides
consumable products and capital equipment for drilling, subsea,
coiled tubing, wireline, and stimulation markets.
Artificial Lift and Downhole segment revenue was $90 million, a
7% increase, primarily related to higher demand for our processing
equipment technologies, as well as increased sales of our
artificial lift products. Orders were $87 million, a 14% increase,
due to elevated Production Equipment orders. Segment adjusted
EBITDA was $19 million, an 11% increase, mainly due to higher sales
of our artificial lift products and processing equipment
technologies. The Artificial Lift and Downhole segment engineers,
manufactures, and supplies products for well construction,
artificial lift, and oil and natural gas processing.
FET® is a global manufacturing company, serving the oil, natural
gas, industrial 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.
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.
Forum Energy Technologies,
Inc.
Condensed consolidated
statements of net income (loss)
(Unaudited)
Three months ended
December 31,
September 30,
(in millions, except per share
information)
2024
2023
2024
Revenue
$
201.0
$
185.2
$
207.8
Cost of sales
138.5
135.5
142.1
Gross profit
62.5
49.7
65.7
Operating expenses
Selling, general and administrative
expenses
54.6
45.0
56.3
Transaction expenses
—
2.9
0.6
Impairment of intangible assets
119.1
—
—
Gain on sale-leaseback transactions and
other
(4.4
)
—
(0.1
)
Total operating expenses
169.3
47.9
56.8
Operating income (loss)
(106.8
)
1.8
8.9
Other expense (income)
Interest expense
6.4
4.6
7.7
Loss on extinguishment of debt
0.6
—
1.8
Foreign exchange losses (gains) and other,
net
(6.6
)
9.1
9.6
Total other expense
0.4
13.7
19.1
Loss before income taxes
(107.2
)
(11.9
)
(10.2
)
Income tax expense (benefit)
(3.7
)
4.9
4.6
Net income (loss) (1)
$
(103.5
)
$
(16.8
)
$
(14.8
)
Weighted average shares
outstanding
Basic
12.3
10.2
12.3
Diluted
12.3
10.2
12.3
Loss per share
Basic
$
(8.39
)
$
(1.64
)
$
(1.20
)
Diluted
$
(8.39
)
$
(1.64
)
$
(1.20
)
(1) Refer to Table 1 for schedule of
adjusting items.
Forum Energy Technologies,
Inc.
Condensed consolidated
statements of net income (loss)
(Unaudited)
Year ended
December 31,
(in millions, except per share
information)
2024
2023
Revenue
$
816.4
$
738.9
Cost of sales
561.4
534.7
Gross profit
255.0
204.2
Operating expenses
Selling, general and administrative
expenses
219.3
180.4
Transaction expenses
7.7
2.9
Impairment of intangible assets
119.1
—
Loss (gain) on sale-leaseback transactions
and other
(4.3
)
0.2
Total operating expenses
341.8
183.5
Operating income (loss)
(86.8
)
20.7
Other expense
Interest expense
31.5
18.3
Loss on extinguishment of debt
2.9
—
Foreign exchange losses and other, net
7.2
10.2
Total other expense
41.6
28.5
Loss before income taxes
(128.4
)
(7.8
)
Income tax expense
6.9
11.1
Net income (loss) (1)
$
(135.3
)
$
(18.9
)
Weighted average shares
outstanding
Basic
12.3
10.2
Diluted
12.3
10.2
Loss per share
Basic
$
(11.00
)
$
(1.85
)
Diluted
$
(11.00
)
$
(1.85
)
(1) Refer to Table 2 for schedule of
adjusting items.
Forum Energy Technologies,
Inc.
Condensed consolidated balance
sheets
(Unaudited)
(in millions of dollars)
December 31,
2024
December 31,
2023
Assets
Current assets
Cash and cash equivalents
$
44.7
$
46.2
Accounts receivable—trade, net
153.9
146.7
Inventories, net
265.5
299.6
Other current assets
31.5
37.1
Total current assets
495.6
529.6
Property and equipment, net of accumulated
depreciation
63.4
61.4
Operating lease assets
70.4
55.4
Goodwill and intangible assets, net
170.9
168.0
Other long-term assets
15.7
6.7
Total assets
$
816.0
$
821.1
Liabilities and equity
Current liabilities
Current portion of long-term debt
$
1.9
$
1.2
Other current liabilities
200.0
203.1
Total current liabilities
201.9
204.3
Long-term debt, net of current portion
186.5
129.6
Other long-term liabilities
107.8
74.5
Total liabilities
496.2
408.4
Total equity
319.8
412.7
Total liabilities and equity
$
816.0
$
821.1
Forum Energy Technologies,
Inc.
Condensed consolidated cash
flow information
(Unaudited)
Year ended
December 31,
(in millions of dollars)
2024
2023
Cash flows from operating
activities
Net loss
$
(135.3
)
$
(18.9
)
Depreciation and amortization
53.7
34.7
Impairment of intangible assets
119.1
—
Inventory write down
2.7
2.8
Loss on extinguishment of debt
2.9
—
Gain on sale-leaseback transactions
(4.9
)
—
Other noncash items and changes in working
capital
54.0
(10.4
)
Net cash provided by operating
activities
92.2
8.2
Cash flows from investing
activities
Capital expenditures for property and
equipment
(8.1
)
(7.9
)
Proceeds from sale of property and
equipment
0.7
1.3
Acquisition of businesses, net of cash
acquired
(150.4
)
—
Proceeds from sale-leaseback
transactions
20.3
—
Net cash used in investing
activities
(137.5
)
(6.6
)
Cash flows from financing
activities
Borrowings of debt
874.3
451.7
Repayments of debt
(819.5
)
(453.0
)
Repurchases of stock
—
(3.5
)
Payments of withheld taxes on stock-based
compensation plans
(1.1
)
(2.5
)
Deferred financing costs
(8.5
)
(0.3
)
Net cash provided by (used in)
financing activities
45.2
(7.6
)
Effect of exchange rate changes on
cash
(1.4
)
1.1
Net decrease in cash, cash equivalents
and restricted cash
$
(1.5
)
$
(4.9
)
Forum Energy Technologies,
Inc.
Supplemental schedule -
Segment information
(Unaudited)
As Reported
As Adjusted (3)
Three months ended
Three months ended
(in millions of dollars)
December 31,
2024
December 31,
2023
September 30,
2024
December 31,
2024
December 31,
2023
September 30,
2024
Revenue
Drilling and Completions
$
111.1
$
126.6
$
123.6
$
111.1
$
126.6
$
123.6
Artificial Lift and Downhole
89.9
58.6
84.2
89.9
58.6
84.2
Eliminations
—
—
—
—
—
—
Total revenue
$
201.0
$
185.2
$
207.8
$
201.0
$
185.2
$
207.8
Operating income (loss)
Drilling and Completions
$
3.3
$
4.0
$
7.0
$
3.8
$
4.7
$
7.3
Operating margin %
3.0
%
3.2
%
5.7
%
3.4
%
3.7
%
5.9
%
Artificial Lift and Downhole
12.9
7.4
10.8
13.1
7.4
10.8
Operating margin %
14.3
%
12.6
%
12.8
%
14.6
%
12.6
%
12.8
%
Corporate
(8.4
)
(6.7
)
(8.4
)
(8.5
)
(6.7
)
(8.3
)
Total segment operating income
(loss)
7.8
4.7
9.4
8.4
5.4
9.8
Other items not in segment operating
income (loss) (1)
(114.6
)
(2.9
)
(0.5
)
(0.3
)
—
—
Total operating income (loss)
$
(106.8
)
$
1.8
$
8.9
$
8.1
$
5.4
$
9.8
Operating margin %
(53.1
)%
1.0
%
4.3
%
4.0
%
2.9
%
4.7
%
EBITDA (2)
Drilling and Completions
$
(106.7
)
$
3.8
$
4.5
$
9.5
$
12.1
$
14.5
EBITDA margin %
(96.0
)%
3.0
%
3.6
%
8.6
%
9.6
%
11.7
%
Artificial Lift and Downhole
18.8
8.5
17.2
19.3
8.7
17.4
EBITDA margin %
20.9
%
14.5
%
20.4
%
21.5
%
14.8
%
20.7
%
Corporate
(0.8
)
(10.9
)
(10.6
)
(6.6
)
(5.4
)
(6.1
)
Total EBITDA
$
(88.7
)
$
1.4
$
11.1
$
22.2
$
15.4
$
25.8
EBITDA margin %
(44.1
)%
0.8
%
5.3
%
11.0
%
8.3
%
12.4
%
(1) Includes transaction
expenses, gain on sale-leaseback transaction and gain (loss) on
disposal of assets and other.
(2) The Company believes that the
presentation of EBITDA is useful to the Company's investors because
EBITDA is an appropriate measure for evaluating the Company's
operating performance and liquidity that reflects the resources
available for strategic opportunities including, among others,
investing in the business, strengthening the balance sheet,
repurchasing the Company's securities and making strategic
acquisitions. In addition, EBITDA is a widely used benchmark in the
investment community. See the attached separate schedule for the
reconciliation of GAAP to non-GAAP financial information.
(3) Refer to Table 1 for schedule
of adjusting items.
Forum Energy Technologies,
Inc.
Supplemental schedule -
Segment information
(Unaudited)
As Reported
As Adjusted (3)
Year ended
Year ended
(in millions of dollars)
December 31,
2024
December 31,
2023
December 31,
2024
December 31,
2023
Revenue
Drilling and Completions
$
470.8
$
502.6
$
470.8
$
502.6
Artificial Lift and Downhole
345.7
236.3
345.7
236.3
Eliminations
(0.1
)
—
(0.1
)
—
Total revenue
$
816.4
$
738.9
$
816.4
$
738.9
Operating income (loss)
Drilling and Completions
$
17.8
$
19.4
$
20.5
$
20.9
Operating margin %
3.8
%
3.9
%
4.4
%
4.2
%
Artificial Lift and Downhole
48.9
31.6
49.1
32.1
Operating margin %
14.1
%
13.4
%
14.2
%
13.6
%
Corporate
(31.0
)
(27.2
)
(30.5
)
(26.4
)
Total segment operating income
(loss)
35.7
23.8
39.1
26.6
Other items not in segment operating
income (loss) (1)
(122.5
)
(3.1
)
(0.4
)
0.6
Total operating income (loss)
$
(86.8
)
$
20.7
$
38.7
$
27.2
Operating margin %
(10.6
)%
2.8
%
4.7
%
3.7
%
EBITDA (2)
Drilling and Completions
$
(84.6
)
$
40.1
$
49.2
$
50.9
EBITDA margin %
(18.0
)%
8.0
%
10.5
%
10.1
%
Artificial Lift and Downhole
73.0
36.2
74.4
37.6
EBITDA margin %
21.1
%
15.3
%
21.5
%
15.9
%
Corporate
(31.6
)
(31.1
)
(23.6
)
(21.4
)
Total EBITDA
$
(43.2
)
$
45.2
$
100.0
$
67.1
EBITDA margin %
(5.3
)%
6.1
%
12.2
%
9.1
%
(1) Includes transaction
expenses, gain on sale-leaseback transaction and gain (loss) on
disposal of assets and other.
(2) The Company believes that the
presentation of EBITDA is useful to the Company's investors because
EBITDA is an appropriate measure for evaluating the Company's
operating performance and liquidity that reflects the resources
available for strategic opportunities including, among others,
investing in the business, strengthening the balance sheet,
repurchasing the Company's securities and making strategic
acquisitions. In addition, EBITDA is a widely used benchmark in the
investment community. See the attached separate schedule for the
reconciliation of GAAP to non-GAAP financial information.
(3) Refer to Table 2 for schedule
of adjusting items.
Forum Energy Technologies,
Inc.
Supplemental schedule - Orders
information
(Unaudited)
Three months ended
(in millions of dollars)
December 31,
2024
December 31,
2023
September 30,
2024
Orders
Drilling and Completions
$
103.0
$
113.8
$
129.5
Artificial Lift and Downhole
87.0
46.5
76.3
Total orders
$
190.0
$
160.3
$
205.8
Revenue
Drilling and Completions
$
111.1
$
126.6
$
123.6
Artificial Lift and Downhole
89.9
58.6
84.2
Total revenue
$
201.0
$
185.2
$
207.8
Book to bill ratio (1)
Drilling and Completions
0.93
0.90
1.05
Artificial Lift and Downhole
0.97
0.79
0.91
Total book to bill ratio
0.95
0.87
0.99
(1) The book-to-bill ratio is calculated
by dividing the dollar value of orders received in a given period
by the revenue earned in that same period. The Company believes
that this ratio is useful to investors because it provides an
indication of whether the demand for our products is strengthening
or declining. A ratio of greater than one is indicative of
improving market demand, while a ratio of less than one would
suggest weakening demand. In addition, the Company believes the
book-to-bill ratio provides more meaningful insight into future
revenues for our business than other measures, such as order
backlog, because the majority of the Company's products are
activity based consumable items or shorter cycle capital equipment,
neither of which are typically ordered by customers far in
advance.
Forum Energy Technologies,
Inc.
Reconciliation of GAAP to
non-GAAP financial information
(Unaudited)
Table 1 - Adjusting
items
Three months ended
December 31, 2024
December 31, 2023
September 30, 2024
(in millions, except per share
information)
Operating income
(loss)
EBITDA (1)
Net income (loss)
Operating income
(loss)
EBITDA (1)
Net income (loss)
Operating income
(loss)
EBITDA (1)
Net income (loss)
As reported
$
(106.8
)
$
(88.7
)
$
(103.5
)
$
1.8
$
1.4
$
(16.8
)
$
8.9
$
11.1
$
(14.8
)
% of revenue
(53.1
)%
(44.1
)%
1.0
%
0.8
%
4.3
%
5.3
%
Restructuring and other costs
0.9
0.9
0.9
0.7
0.7
0.7
0.3
0.3
0.3
Transaction expenses
—
—
—
2.9
2.9
2.9
0.6
0.6
0.6
Inventory and other working capital
adjustments
(0.2
)
(0.2
)
(0.2
)
—
—
—
—
—
—
Impairment of intangible assets
119.1
119.1
119.1
—
—
—
—
—
—
Stock-based compensation expense
—
2.0
—
—
1.2
—
—
2.2
—
Loss on extinguishment of debt
—
0.6
0.6
—
—
—
—
1.8
1.8
Loss (gain) on foreign exchange, net
(2)
—
(6.6
)
(6.6
)
—
9.2
9.2
—
9.8
9.8
Gain on sale-leaseback transactions
(4.9
)
(4.9
)
(4.9
)
—
—
—
—
—
—
Release of valuation allowance on deferred
tax assets
—
—
(11.3
)
—
—
—
—
—
—
As adjusted(1)
$
8.1
$
22.2
$
(5.9
)
$
5.4
$
15.4
$
(4.0
)
$
9.8
$
25.8
$
(2.3
)
% of revenue
4.0
%
11.0
%
2.9
%
8.3
%
4.7
%
12.4
%
Diluted shares outstanding as reported
12.3
10.2
12.3
Diluted shares outstanding as adjusted
12.3
10.2
12.3
Diluted EPS - as reported
$
(8.39
)
$
(1.64
)
$
(1.20
)
Diluted EPS - as adjusted
$
(0.48
)
$
(0.39
)
$
(0.19
)
(1) The Company believes that the
presentation of EBITDA, adjusted EBITDA, adjusted operating loss,
adjusted net loss and adjusted diluted EPS are useful to the
Company's investors because (i) each of these financial metrics are
useful to investors to assess and understand operating performance,
especially when comparing those results with previous and
subsequent periods or forecasting performance for future periods,
primarily because management views the excluded items to be outside
of the Company's normal operating results and (ii) EBITDA is an
appropriate measure of evaluating the company's operating
performance and liquidity that reflects the resources available for
strategic opportunities including, among others, investing in the
business, strengthening the balance sheet, repurchasing the
Company's securities and making strategic acquisitions. In
addition, these benchmarks are widely used in the investment
community. See the attached separate schedule for the
reconciliation of GAAP to non-GAAP financial information.
(2) Foreign exchange, net
primarily relates to cash and receivables denominated in U.S.
dollars by some of our non-U.S. subsidiaries that report in a local
currency, and therefore the loss (gain) has no economic impact in
dollar terms.
Forum Energy Technologies,
Inc.
Reconciliation of GAAP to
non-GAAP financial information
(Unaudited)
Table 2 - Adjusting
items
Year ended
December 31, 2024
December 31, 2023
(in millions, except per share
information)
Operating (income)
loss
EBITDA (1)
Net income (loss)
Operating (income)
loss
EBITDA (1)
Net income (loss)
As reported
$
(86.8
)
$
(43.2
)
$
(135.3
)
$
20.7
$
45.2
$
(18.9
)
% of revenue
(10.6
)%
(5.3
)%
2.8
%
6.1
%
Restructuring and other costs
3.8
3.8
3.8
3.1
3.1
3.1
Transaction expenses
7.7
7.7
7.7
3.9
3.9
3.9
Inventory and other working capital
adjustments
(0.2
)
(0.2
)
(0.2
)
(0.5
)
(0.5
)
(0.5
)
Impairment of intangible assets
119.1
119.1
119.1
—
—
—
Stock-based compensation expense
—
7.2
—
—
4.6
—
Loss on extinguishment of debt
—
2.9
2.9
—
—
—
Loss on foreign exchange, net (2)
—
7.6
7.6
—
10.8
10.8
Gain on sale-leaseback transactions
(4.9
)
(4.9
)
(4.9
)
—
—
—
Release of valuation allowance on deferred
tax assets
—
—
(11.3
)
—
—
—
As adjusted (1)
$
38.7
$
100.0
$
(10.6
)
$
27.2
$
67.1
$
(1.6
)
% of revenue
4.7
%
12.2
%
3.7
%
9.1
%
Diluted shares outstanding as reported
12.3
10.2
Diluted shares outstanding as adjusted
12.3
10.2
Diluted EPS - as reported
$
(11.00
)
$
(1.85
)
Diluted EPS - as adjusted
$
(0.86
)
$
(0.16
)
(1) The Company believes that the
presentation of EBITDA, adjusted EBITDA, adjusted operating loss,
adjusted net loss and adjusted diluted EPS are useful to the
Company's investors because (i) each of these financial metrics are
useful to investors to assess and understand operating performance,
especially when comparing those results with previous and
subsequent periods or forecasting performance for future periods,
primarily because management views the excluded items to be outside
of the Company's normal operating results and (ii) EBITDA is an
appropriate measure of evaluating the company's operating
performance and liquidity that reflects the resources available for
strategic opportunities including, among others, investing in the
business, strengthening the balance sheet, repurchasing the
Company's securities and making strategic acquisitions. In
addition, these benchmarks are widely used in the investment
community. See the attached separate schedule for the
reconciliation of GAAP to non-GAAP financial information.
(2) Foreign exchange, net
primarily relates to cash and receivables denominated in U.S.
dollars by some of our non-U.S. subsidiaries that report in a local
currency, and therefore the loss (gain) has no economic impact in
dollar terms.
Forum Energy Technologies,
Inc.
Reconciliation of GAAP to
non-GAAP financial information
(Unaudited)
Table 3 - Adjusting
Items
Three months ended
(in millions of dollars)
December 31,
2024
December 31,
2023
September 30,
2024
EBITDA reconciliation (1)
Net income (loss)
$
(103.5
)
$
(16.8
)
$
(14.8
)
Interest expense
6.4
4.6
7.7
Depreciation and amortization
12.1
8.7
13.6
Income tax expense (benefit)
(3.7
)
4.9
4.6
EBITDA
$
(88.7
)
$
1.4
$
11.1
(1) The Company believes adjusted EBITDA
is useful to investors because it is an appropriate measure of
evaluating operating performance and liquidity. It reflects the
resources available for strategic opportunities including, among
others, investing in the business, strengthening the balance sheet,
repurchasing the Company’s securities, and making strategic
acquisitions. In addition, adjusted EBITDA is a widely used
benchmark in the investment community.
Forum Energy Technologies,
Inc.
Reconciliation of GAAP to
non-GAAP financial information
(Unaudited)
Table 4 - Adjusting
Items
Year ended
(in millions of dollars)
December 31,
2024
December 31,
2023
EBITDA reconciliation (1)
Net income (loss)
$
(135.3
)
$
(18.9
)
Interest expense
31.5
18.3
Depreciation and amortization
53.7
34.7
Income tax expense
6.9
11.1
EBITDA
$
(43.2
)
$
45.2
(1) The Company believes adjusted EBITDA
is useful to investors because it is an appropriate measure of
evaluating operating performance and liquidity. It reflects the
resources available for strategic opportunities including, among
others, investing in the business, strengthening the balance sheet,
repurchasing the Company’s securities, and making strategic
acquisitions. In addition, adjusted EBITDA is a widely used
benchmark in the investment community.
Forum Energy Technologies,
Inc.
Free cash flow
(Unaudited)
Table 5 - Adjusting
items
Three months ended
(in millions of dollars)
December 31,
2024
December 31,
2023
September 30,
2024
Free cash flow, before acquisitions,
reconciliation (1)
Net cash provided by operating
activities
$
38.5
$
11.3
$
25.6
Capital expenditures for property and
equipment
(2.4
)
(2.4
)
(1.3
)
Proceeds from sale of property and
equipment
0.5
—
0.2
Proceeds from sale-leaseback
transactions
20.3
—
—
Free cash flow, before acquisitions
$
56.9
$
8.9
$
24.5
(1) The Company believes free cash flow,
before acquisitions is an important measure because it encompasses
both profitability and capital management in evaluating
results.
Forum Energy Technologies,
Inc.
Free cash flow
(Unaudited)
Table 6 - Adjusting
items
Year ended
(in millions of dollars)
December 31,
2024
December 31,
2023
Free cash flow, before acquisitions,
reconciliation (1)
Net cash provided by operating
activities
$
92.2
$
8.2
Capital expenditures for property and
equipment
(8.1
)
(7.9
)
Proceeds from sale of property and
equipment
0.7
1.3
Proceeds from sale-leaseback
transactions
20.3
—
Free cash flow, before acquisitions
$
105.1
$
1.6
(1) The Company believes free cash flow,
before acquisitions is an important measure because it encompasses
both profitability and capital management in evaluating
results.
Forum Energy Technologies,
Inc.
Supplemental schedule -
Product line revenue
(Unaudited)
Three months ended
(in millions of dollars)
December 31,
2024
December 31,
2023
September 30,
2024
Revenue
$
%
$
%
$
%
Drilling
$
35.5
17.6
%
$
41.6
22.5
%
$
35.8
17.2
%
Subsea
18.6
9.3
%
27.6
14.9
%
20.9
10.1
%
Stimulation and Intervention
31.1
15.5
%
32.1
17.3
%
38.0
18.3
%
Coiled Tubing
25.9
12.9
%
25.3
13.7
%
28.9
13.9
%
Drilling and Completions
111.1
55.3
%
126.6
68.4
%
123.6
59.5
%
Downhole
51.5
25.6
%
21.7
11.7
%
50.6
24.4
%
Production Equipment
21.7
10.8
%
22.7
12.3
%
18.0
8.7
%
Valve Solutions
16.7
8.3
%
14.2
7.6
%
15.6
7.4
%
Artificial Lift and Downhole
89.9
44.7
%
58.6
31.6
%
84.2
40.5
%
Eliminations
—
—
%
—
—
%
—
—
%
Total revenue
$
201.0
100.0
%
$
185.2
100.0
%
$
207.8
100.0
%
View source
version on businesswire.com: https://www.businesswire.com/news/home/20250220656113/en/
Rob Kukla Director of Investor Relations 281.994.3763
rob.kukla@f-e-t.com
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