Forum Energy Technologies posts Q2 results, raises full year 2025 cash flow guidance

Forum Energy Technologies (FET) recently posted second quarter 2025 revenue of US$200 million and net income of US$8 million or US$0.61 per diluted share.

Adjusted for a US$7 million sale leaseback transaction gain and US$4 million of foreign exchange gains, partially offset by restructuring costs, net loss was US$1 million or approximately US$0.10 per diluted share.

The drilling and completions segment's revenue was US$117 million, a one per cent increase, primarily due to improved coiled line pipe sales with growing demand in the US and a large Middle East project, and demand for drilling-related capital equipment.

The increase was offset by lower demand for completions-related equipment in FET's stimulation and intervention product line. Segment adjusted gross operating was US$11 million, an eight per cent decrease, due to unfavourable product mix from lower sales of higher margin products, partially offset by benefits of cost-saving initiatives.

Orders were US$178 million, up 35 per cent, primarily from the submarine rescue vehicle system, additional remotely operated vehicles, and higher demand for coiled tubing. The drilling and completions segment provides consumable products and capital equipment for drilling, subsea, coiled tubing, wireline, and stimulation markets.

The artificial lift and downhole segment revenue was US$83 million, a six per cent increase, primarily from higher demand for processing equipment technologies, downhole casing equipment, sand control products, and cable protection products.

Segment adjusted gross operating profit was US$17 million, a 24 per cent increase, due to higher revenue, favourable product mix, and benefits from cost-saving initiatives. Orders increased 24 per cent to $85 million, primarily from higher demand for processing equipment and technologies, and sand control products.

The artificial lift and downhole segment engineers, manufactures, and supplies products for well construction, artificial lift, and oil and natural gas processing.

"The FET team delivered strong results, with sequential improvements in bookings, revenue, adjusted [gross operating profit], and free cash flow," Neal Lux, President and Chief Executive Officer, remarked. "We achieved the eighth consecutive quarter of positive free cash flow, generating US$168 million over that period.

"With this performance and our outlook, we are raising 2025 guidance to between US$60 and US$80 million. Applying our capital returns framework, we will use this free cash flow to further reduce net debt and execute share repurchases."