FORUM ENERGY TECHNOLOGIES, INC. (FET): Results of Operations and Financial Condition
FORUM ENERGY TECHNOLOGIES, INC. (FET) filed an SEC Form 8-K — Results of Operations and Financial Condition. Exhibit 99.1 Forum Energy Technologies Announces Second Quarter 2026 Results; Raises Full Year 2026 Guidance • 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%
How this was made
The 30-second read
Why it matters
The key tradable inputs are the raised full-year 2026 guidance ranges, Q2 order and book-to-bill strength, and the stated leverage reduction to 1.1x supported by free cash flow and share repurchases.
Market read
A same-day guidance raise with quantified ranges and balance-sheet improvement (net leverage 1.1x) is a direct catalyst for FET positioning ahead of the earnings call.
What to watch
The release highlights free cash flow and leverage improvement, but traders should scrutinize working-capital and segment mix drivers behind the margin expansion to judge sustainability.
Forum Energy Technologies Announces Second Quarter 2026 Results; Raises Full Year 2026 Guidance
Revenue increased 8% sequentially, net income increased 176%, adjusted EBITDA increased 39% sequentially, both operating segments increased revenue and adjusted EBITDA, and the company raised all full-year 2026 guidance metrics.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| RevenueGAAP | $ 226,217 (in thousands) | up 8% sequentially | – |
| Cost of salesGAAP | 154,865 (in thousands) | – | – |
| Gross profitGAAP | 71,352 (in thousands) | – | – |
| Selling, general and administrative expensesGAAP | 50,260 (in thousands) | – | – |
| Transaction expensesGAAP | 125 (in thousands) | – | – |
| Loss (gain) on disposal of assets and otherGAAP | 460 (in thousands) | – | – |
| Total operating expensesGAAP | 50,845 (in thousands) | – | – |
| Operating incomeGAAP | 20,507 (in thousands) | – | – |
| Interest expenseGAAP | 4,272 (in thousands) | – | – |
| Foreign exchange losses (gains) and other, netGAAP | 226 (in thousands) | – | – |
| Total other expenseGAAP | 4,498 (in thousands) | – | – |
| Income before taxesGAAP | 16,009 (in thousands) | – | – |
| Income tax expenseGAAP | 3,602 (in thousands) | – | – |
| Net incomeGAAP | $ 12,407 (in thousands) | – | up 176% |
| Earnings per share, basicGAAP | $ 1.10 | – | – |
| Earnings per share, dilutedGAAP | $ 1.05 | – | up 169% |
| Adjusted net incomenon-GAAP | $14 million | up 148% | – |
| Adjusted earnings per sharenon-GAAP | $1.16 | up 147% | – |
| Adjusted EBITDAnon-GAAP | $32 million | up 39% sequentially | – |
| RevenueGAAP | $ 434,917 (in thousands) | – | – |
| Gross profitGAAP | 132,343 (in thousands) | – | – |
| Operating incomeGAAP | 31,512 (in thousands) | – | – |
| Net incomeGAAP | $ 16,899 (in thousands) | – | – |
| Earnings per share, basicGAAP | $ 1.50 | – | – |
| Earnings per share, dilutedGAAP | $ 1.44 | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Drilling and CompletionsHigher 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. | $139 million | 10% increase | – |
| Artificial Lift and DownholeHigher demand for sand and flow control solutions, artificial lift products, and casing equipment. Delayed production equipment deliveries partially offset the increase. 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. | $87 million | 6% increase | – |
Third Quarter 2026 and Full Year 2026 outlook
- RevenueThird Quarter 2026: $225 to $245; Full Year 2026: $870 to $910
- NoteAdjusted EBITDA: Third Quarter 2026: $31 to $37; Full Year 2026: $115 to $125
- NoteAdjusted Net Income: Third Quarter 2026: $12 to $18; Full Year 2026: $42 to $52
- NoteFree Cash Flow: Third Quarter 2026: $15 to $25; Full Year 2026: $57 to $77
- NoteThird Quarter 2026 YoY Change: Revenue 20%; Adjusted EBITDA 48%; Adjusted Net Income 400%; Free Cash Flow (9)%
- NoteFull Year 2026 Prior Change: Revenue 6%; Adjusted EBITDA 17%; Adjusted Net Income 57%; Free Cash Flow 3%
- NoteFull Year 2026 YoY Change: Revenue 13%; Adjusted EBITDA 40%; Adjusted Net Income 571%; Free Cash Flow 3%
Capital returns
- $8 million repurchased in first half 2026
- Repurchases of stock: $(7,567) (in thousands), six months ended June 30, 2026
- Repurchases of stock: $(6,295) (in thousands), six months ended June 30, 2025
- Payment of withheld taxes on stock-based compensation plans: $(9,274) (in thousands), six months ended June 30, 2026
What drove it
- Orders were $236 million and the book-to-bill ratio was 104%.
- Management stated it grew market share 13% sequentially.
- Gross and adjusted EBITDA margins expanded 230 and 300 basis points, respectively.
- Drilling and Completions demand increased for coiled tubing, wireline cables, and capital equipment.
- Artificial Lift and Downhole benefited from higher demand for sand and flow control solutions, artificial lift products, and casing equipment.
- Drilling and Completions adjusted EBITDA benefited from cost management and improved plant utilization related to facility consolidation.
- Artificial Lift and Downhole adjusted EBITDA benefited from higher sales volumes and favorable product mix.
- Management cited first-half performance, market share gains, and backlog in raising all full-year guidance metrics.
Concerns
- Artificial Lift and Downhole revenue growth was partially offset by delayed production equipment deliveries.
- Six-month net cash provided by operating activities was 14,056 (in thousands), compared with 25,099 (in thousands) in the prior-year period.
- Inventories, net were 233,473 (in thousands) at June 30, 2026, compared with 239,420 (in thousands) at December 31, 2025.
- The company identified volatility of oil and natural gas prices, oilfield development activity levels, raw-material and specialized-equipment availability, backlog delivery, skilled-labor availability, competition, regulation, and capital availability as risks.
What to watch
- Delivery of the $225 to $245 third-quarter 2026 revenue guidance range.
- Progress toward full-year 2026 revenue of $870 to $910 and adjusted EBITDA of $115 to $125.
- Conversion of backlog and continued book-to-bill performance in both segments.
- Whether delayed production equipment deliveries continue to affect Artificial Lift and Downhole.
- Free cash flow execution against third-quarter guidance of $15 to $25 and full-year guidance of $57 to $77.
- Further share repurchases and the reported net leverage of 1.1 times.
Balance sheet and cash flow
- Cash and cash equivalents: $ 33,716 (in thousands) at June 30, 2026; $ 34,661 (in thousands) at December 31, 2025
- Current portion of long-term debt: $ 1,273 (in thousands) at June 30, 2026; $ 1,407 (in thousands) at December 31, 2025
- Long-term debt, net of current portion: 142,435 (in thousands) at June 30, 2026; 134,521 (in thousands) at December 31, 2025
- Total assets: $ 770,710 (in thousands) at June 30, 2026; $ 752,455 (in thousands) at December 31, 2025
- Total liabilities: 480,928 (in thousands) at June 30, 2026; 461,312 (in thousands) at December 31, 2025
- Total equity: 289,782 (in thousands) at June 30, 2026; 291,143 (in thousands) at December 31, 2025
- Net cash provided by operating activities: 14,056 (in thousands), six months ended June 30, 2026; 25,099 (in thousands), six months ended June 30, 2025
- Capital expenditures for property and equipment: (3,189) (in thousands), six months ended June 30, 2026; (3,061) (in thousands), six months ended June 30, 2025
- Net cash provided by (used in) investing activities: (3,030) (in thousands), six months ended June 30, 2026; 5,024 (in thousands), six months ended June 30, 2025
- Borrowings of debt: 265,195 (in thousands), six months ended June 30, 2026; 271,326 (in thousands), six months ended June 30, 2025
- Repayments of debt: (258,266) (in thousands), six months ended June 30, 2026; (300,092) (in thousands), six months ended June 30, 2025
- Net cash used in financing activities: (11,571) (in thousands), six months ended June 30, 2026; (37,296) (in thousands), six months ended June 30, 2025
- Net leverage: 1.1 times
Analysis
Forum Energy Technologies reported a stronger second quarter, with revenue of $ 226,217 (in thousands), up 8% sequentially from $ 208,700 (in thousands). GAAP net income was $ 12,407 (in thousands), compared with $ 4,492 (in thousands) in the first quarter and $ 7,700 (in thousands) a year earlier. Diluted earnings per share were $ 1.05, versus $ 0.39 in the first quarter and $ 0.61 a year earlier. The release also reported adjusted EBITDA of $32 million, up 39% sequentially, and adjusted net income of $14 million, up 148%.
Both operating segments expanded sequentially. Drilling and Completions generated $139 million of revenue, up 10%, as demand rose for coiled tubing, wireline cables, and capital equipment. Its adjusted EBITDA was $16 million, up 29%, with cost management and facility-consolidation-related plant utilization cited as benefits. Artificial Lift and Downhole generated $87 million of revenue, up 6%, supported by sand and flow control, artificial lift, and casing-equipment demand. Its adjusted EBITDA was $22 million, up 30%, although delayed production equipment deliveries partially offset revenue growth.
Profitability improved alongside revenue. Gross profit increased to 71,352 (in thousands) from 60,991 (in thousands) sequentially, while operating income increased to 20,507 (in thousands) from 11,005 (in thousands). Management stated that gross and adjusted EBITDA margins expanded 230 and 300 basis points, respectively. Orders were $236 million and the company reported a 104% book-to-bill ratio, while individual segment book-to-bill ratios were 104% for Drilling and Completions and 105% for Artificial Lift and Downhole.
Capital allocation included $8 million repurchased in the first half of 2026, with repurchases of stock reported as $(7,567) (in thousands) for the six-month period. Cash and cash equivalents were $ 33,716 (in thousands) at June 30, 2026, and long-term debt, net of current portion, was 142,435 (in thousands). The company reported net leverage of 1.1 times. Six-month net cash provided by operating activities was 14,056 (in thousands), below 25,099 (in thousands) in the prior-year period.
The company raised all full-year 2026 guidance metrics. Full-year revenue guidance is $870 to $910, adjusted EBITDA guidance is $115 to $125, adjusted net income guidance is $42 to $52, and free cash flow guidance is $57 to $77. Third-quarter guidance calls for revenue of $225 to $245 and adjusted EBITDA of $31 to $37. The principal operating items to monitor are backlog conversion, sustained order momentum, the resolution of delayed production equipment deliveries, and free cash flow delivery against the updated targets.
Management, verbatim
At the beginning of the quarter, we guided a substantial increase in financial performance, and our team exceeded expectations.
Neal Lux, President and Chief Executive Officer
With the strength of our first half performance, market share gains, and backlog, we are raising all guidance metrics for full year 2026.
Neal Lux, President and Chief Executive Officer
Not in the filing
stated, not guessed- Prior guidance was not provided, so no reported-period comparison with prior guidance is available.
- GAAP gross margin was not reported.
- Adjusted EBITDA reconciliation tables were referenced but not included in the provided filing text.
- Adjusted net income reconciliation tables were referenced but not included in the provided filing text.
- Actual second-quarter free cash flow was not reported.
- Actual first-half 2026 free cash flow was not reported.
- Quarterly operating cash flow was not reported.
- Quarterly capital expenditures were not reported.
- Dividends were not reported.
- Third-quarter and full-year guidance for gross margin, operating expenses, and tax rate were not reported.
- Sequential percentage changes for most GAAP statement-of-income line items were not reported.
- Year-over-year percentage changes for most GAAP statement-of-income line items were not reported.
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
SEC 8-K Item 2.02 with Exhibit 99.1 covering Q2 2026 results and updated Q3 and full-year 2026 guidance for Forum Energy Technologies.
Ticker impact
Forum Energy Technologies reported Q2 results and raised full-year 2026 guidance, including revenue $870 to $910 and adjusted EBITDA $115 to $125.
Likely upward bias for the next session and into the July 31 call, assuming the market views the guidance raise as credible versus oilfield activity risk.
The filing discloses specific Q2 performance (orders $236m, book-to-bill 104% to 105%) and explicit full-year guidance ranges, plus net leverage reduction to 1.1x and share repurchases.
Market effects
Signals strength in oilfield services demand pockets (coiled tubing, wireline, subsea aftermarket upgrades, sand/flow control) that can support sentiment for related equipment and services names.
Houston-based operator update may marginally influence regional energy-services sentiment but is primarily single-name.
Limited direct global spillover; guidance raise is most relevant to US-listed oilfield services and equipment supply chains.
Counterpoint
Guidance raises could be partially offset by delayed production equipment deliveries and oil and gas activity volatility, so upside may fade if backlog conversion slows.
Key entities
- companyForum Energy Technologies, Inc.
NYSE-listed oilfield services and equipment manufacturer reporting Q2 results and raising 2026 guidance.
- personNeal Lux
President and CEO who commented on exceeding expectations and raising guidance.
